"Scarcity Is Over"... Dogecoin Bets on 'Unlimited Supply' as Payment Currency Strategy

▲ Dogecoin (DOGE) / ChatGPT-generated image

Dogecoin (DOGE) has brought its identity as a next-generation payment currency to the forefront, positioning itself not as a rare collectible but as a leader in the real economy with its unique inflation model that issues 5 billion coins annually.

According to cryptocurrency-focused media outlet Benzinga on February 13 (local time), Dogecoin maintains a distinctive economic structure in which a fixed 5 billion DOGE are newly issued each year, naturally lowering its inflation rate over time. Although the annual issuance remains constant, the proportion of new supply decreases as the total supply grows, serving as a key driver in curbing inflation in the long term. The development team explained that this design helps prevent sharp price volatility and lays the foundation for stable circulation.

The Dogecoin community has voiced concerns about cryptocurrencies becoming mere instruments for asset accumulation. Using the analogy that “money is meant for circulation, not to be collected like rare Pokémon cards,” the community emphasized that Dogecoin is intended for active use in everyday transactions. Unlike other digital assets that stress scarcity and encourage hoarding, Dogecoin is optimized to fulfill the fundamental function of money in daily commerce, supported by abundant liquidity.

The 5 billion DOGE supplied annually are distributed as rewards to miners who maintain network security, supporting the sustainability of the ecosystem. Dogecoin’s current inflation rate stands at around 3%, but it is projected to fall into the 2% range within a decade and gradually converge toward 0% over time. This predictable monetary policy is seen as a decisive factor in reducing supply uncertainty when institutional investors and corporations consider integrating Dogecoin into payment systems.

Market experts assess that Dogecoin is establishing a market position distinct from Bitcoin (BTC). While Bitcoin solidifies its role as digital gold and a store of value, Dogecoin is capturing the digital currency market with low transaction fees, fast transfer speeds, and an unlimited yet predictable supply. In particular, as real-world payment use cases expand alongside support from Tesla CEO Elon Musk, Dogecoin’s monetary model is expected to gain further momentum.

Dogecoin’s strategy of gradually lowering inflation focuses on expanding practical use rather than attracting speculative capital, marking what could be a crucial turning point beyond its meme-coin origins. By avoiding the liquidity traps that fixed-supply assets may face while striving to secure monetary stability, Dogecoin’s approach could emerge as a new standard in the future digital asset financial system.

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