Dogecoin Founder Laments Suggestions to Burn DOGE Supply to Boost Price to $1
The pseudonymous founder of Dogecoin (DOGE), Shibetoshi Nakamoto, has lamented how people have constantly asked him indirectly to boost the value of the dog-themed cryptocurrency to a dollar.
According to Nakamoto, most Dogecoin supporters, when trying to make inquiries about the possibility of boosting DOGE’s price, act like they mean something different in a bid to get his attention.
Nakamoto noted that some Dogecoin supporters have indirectly asked him to boost the price of a unit of DOGE to $1 by burning its supply and placing a cap on the total number of the cryptocurrency that can ever be produced.
In his recent tweet portraying the type of questions people ask him, Nakamoto stated that he cannot burn the supply of Dogecoin because he does not own the protocols to do so.
Furthermore, Nakamoto added that capping the output of Dogecoin supply could destroy the security of DOGE, which is a major risk he cannot afford to take.
“Them: I have an idea that will make Dogecoin go to a dollar and beyond.
Me: Is it burning the supply that I don’t own and can’t, and also capping the output and destroying the security of the coin?,” Nakamoto tweeted.
Dogecoin is the first meme cryptocurrency that launched in 2013 and has enjoyed a tremendous rally since its inception. The coin’s value soared to a high of $0.73 in May 2021, however, its value has dipped over 80% from its all-time high.
Aside from the fact that Dogecoin does not have a use case, a majority of experts blamed the design of the cryptocurrency for having been a major contributor to why the coin has continued to decline in value.
Unlike most cryptocurrencies like Bitcoin and Ethereum, Dogecoin does not have a fixed total supply. That is, miners are always allowed to mint as many DOGEs as possible anytime at its current price.
The implication is that with no cap on Dogecoin supply, miners can mint several of the cryptocurrencies at any time and trade them on major exchanges, thus causing its price to crash.
It is as a result of this issue that makes some crypto enthusiasts refer to DOGE as a pump and dump cryptocurrency.
Dogecoin has received major support from popular global figures like Mark Cuban and Elon Musk despite this flaw.
Meanwhile, earlier this year, Musk confirmed that people can use their DOGE as a payment method for some of its merchandise.