Dogecoin (DOGE) Foundation Teams Up with Ethereum (ETH) Creator Vitalik Buterin to Design a 'Community Staking” System
- PHPzOriginal
- 2024-08-15 18:33:15517browse
The idea is to design a “Community Staking” system based on the Proof-of-Stake (PoS) consensus mechanism.
The Dogecoin Foundation has announced a collaboration with Ethereum founder Vitalik Buterin to create a “Community Staking” system based on the Proof-of-Stake (PoS) consensus mechanism for DOGE.
This development follows the foundation’s announcement at the Bitcoin ESG conference that it will be shifting Dogecoin from Proof-of-Work to Proof-of-Stake.
What is Community Staking?
Community staking is a variant of PoS that enables all members of the community, not just the whales, to earn rewards for their participation and contribution to the dogecoin ecosystem. Additionally, users will be able to participate in charitable giving, thus contributing to the entire community.
The foundation is also working with other projects, such as the PoS wallet project Gigawallet and the Dogecoin JavaScript library Libdogecoin.
According to the latest update, “community staking” is already being tested. The foundation stated:
Libdogecoin and GigaWallet projects will start showing up in the next few months. We already have a few early adopters interested in using them in their projects. These early projects are focused on building a strong foundation. Later projects will focus on transaction throughput and scaling.
Shifting from PoW to PoS
Dogecoin was initially built as a PoW cryptocurrency, similar to Bitcoin. However, there have been increasing discussions regarding the energy efficiency of PoW projects. Notably, even Elon Musk’s Tesla briefly halted the acceptance of BTC for its products earlier this year, citing environmental concerns. The announcement triggered a significant correction in the crypto market.
Following Musk's tweet, the price of bitcoin immediately dropped, losing $3,000 in value within 15 minutes. Bitcoin was trading at close to $55,000 and fell below $52,000 within minutes.
While Dogecoin is planning to transition to PoS next year, it's not the only project. Ethereum's move to PoS has been in the works for some time now and will be a major part of the Ethereum 2.0 update.
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