Dogecoin is transitioning in 2022; What hodlers need to know

Namrata Shukla
Dogecoin community
Source: Pixabay

It is a well-known fact that Ethereum is switching from its current proof-of-work [PoW] system to a Proof-of-Stake [PoS] system. However, what you may not be aware of is that Dogecoin is also moving to the Proof-of-Stake [PoS] system with community staking, as per Ethereum co-founder Vitalik Buterin.

During a recent interview, Buterin noted that almost every major crypto asset has plans to transition to PoS, but one. Buterin stated,

“Every major cryptocurrency except for one has an active plan to switch to Proof-of-Stake. I guess the arguments will be even easier to make once you know Ethereum is Proof-of-Stake and once you know Dogecoin’s plans are further along and Zcash plans further along.”

Source: UpOnly

As per the co-founder of the second-largest crypto, Buterin pointed out that the objective for this switch was the environmental impact of Proof-of-Work [PoW] mining. Bitcoin’s PoW system has faced significant backlash from the collective ecosystem over time. However, despite most PoW cryptos switching to or even planning to switch to PoS was not enough to stop the “public narrative machine” from spouting anti-crypto sentiment from an environmental perspective.

He added,

“Even now, you can go out and say, “Hey guys, you do realize that every major cryptocurrency, except for one, has an active plan to switch to Proof-of-Stake?” To them, it doesn’t matter.”

Dogecoin moving to PoS

Buterin has been playing the role of an advisor to the Dogecoin foundation and suggested it transition to PoS in September 2021. In fact, when the foundation released a “trail map” in late December 2021, it also mentioned plans of “community staking” under the guidance of Vitalik Buterin.

“The Foundation are also working with Vitalik (Founder of the Ethereum blockchain) on crafting a uniquely Doge proposal for a ‘Community Staking’ version of PoS that will allow everyone, not just the big players to participate in a way that rewards them for their contribution to running the network.”

Although the trail map did not specifically mention Dogecoin transitioning to PoS, Buterin referenced the DOGE proposal for a ‘community staking’ version of PoS. This would allow more individuals to participate in managing the Dogecoin network.

The trail map added on this front,

“Allow everyone, not just the big players, to participate in a way that rewards them for their contribution to running the network, and at the same time gives back to the whole community through charitable causes.”

Dogecoin will receive Ethereum’s technological aid for the transition, per Buterin. The co-founder has also suggested an ETH-DOGE bridge to accelerate transaction speed on the Dogecoin blockchain. However, some in the Ethereum community appeared disturbed with Buterin helping Dogecoin when Ethereum has a problem with high gas fees.

Nevertheless, Buterin has confirmed the transition of Dogecoin to a PoS system too. With Buterin working with the Dogecoin Foundation, it would be interesting to see how the meme coin progresses in 2022.