Tesla founder Elon Musk has recently supported Dogecoin’s (DOGE) inflation rate, stating that its flat inflationary model is “a feature, not a bug.”
Musk made this comment in response to Shibetoshi Nakamoto’s recent X post. Shibetoshi Nakamoto, also called Billy Markus, is a famous co-founder of the popular Dogecoin memecoin.
Elon Musk Says Dogecoin (DOGE) Flat Inflationary Model Is “A Feature, Not A Bug”
On Wednesday, November 13, 2024, Elon Musk, the CEO of Tesla Motors, who is also closely associated with Dogecoin (DOGE), defended his support for the dog-themed memecoin’s inflation model, calling DOGE’s flat inflation rate a “feature, not a bug.”
Elon said this in a comment when responding to an X post from Shibetoshi Nakamoto, who co-founded Dogecoin.
In the original post, Shibetoshi Nakamoto, also known as Billy Markus, was addressing repeated questions from the community about DOGE’s inflation rate.
Prior to this time, DOGE’s utility and inflationary supply model have come under repeated skepticism and criticism, where community members argue that the inflationary supply model encourages the continuous creation of Dogecoins, which might soon lead to depreciation.
In response, Shibetoshi, referring to Dogecoin’s GitHub code, specifically line 146, where the memecoin’s inflation rate is defined, explained that those who want to alter Dogecoin’s tokenomics and inflation rate can do so after seeking community approval.
He said,
You can change it right there, make a pull request [and] convince the community and miners to use the new version. Now stop fucking bothering me about it.
Dogecoin, the current 6th largest cryptocurrency by market capitalization, has an unlimited supply, unlike Bitcoin (BTC) or Ethereum (ETH). That means there is no limit to the number of new Dogecoins that can be created.
However, only 10,000 new Dogecoins can be mined every minute, which is about $3,930 using DOGE’s current price on Tradingview. As a result of this fixed number, the percentage it represents of the total coin supply decreases gradually over time.
However, Musk’s response supported Dogecoin’s current tokenomics and flat inflation rate.
He said,
I think the flat inflation of Dogecoin, which means decreasing percentage inflation, is a feature, not a bug.
Shortly after Elon’s comment, Shibetoshi responded in agreement, stating that he agreed that DOGE’s current inflationary model made it “ideal for something intended as a currency.”
The talk on DOGE’s inflation model has been on for many years. In 2021, Mark Cuban, the famous crypto enthusiast and Billionaire entrepreneur, praised the inflation model in an X post, claiming that the memecoin’s seemingly strange tokenomics made it possible for the coin to be useful as a payment method.
In other news, it was reported last month that Elon Musk’s Tesla transferred $765M worth of Bitcoin (BTC) to unknown wallets. Till now, Tesla has not disclosed what it intends to use the transferred funds for or whether it still has custody of the Bitcoin or not.
