This blockchain uses a PoS consensus protocol to allow DC token holders to propose ideas, vote, and assign authority. Despite its decentralization and security procedures, nobody knows its developers yet, generating mistrust in the community.
New crypto projects listed on platforms like CoinGecko and CoinMarketCap include those of the Dogechain network. Of course, many users wonder whether this blockchain is an initiative of Dogecoin.
Dogechain (DC) is a project alternative to Dogecoin (DOGE), not layer 2 of the latter. The Ethereum Virtual Machine supports this blockchain, which is part of a separate network on Polygon Edge.
The Dogecoin Foundation has reported that they have nothing to do with Dogechain. Although this project does not belong to Dogecoin, it may have created a stir and aroused considerable interest due to its name.
Investors should pay attention to this difference since buying any new project may pose risks.
Some Relevant Characteristics of the Dogechain Network
The relationship between Dogecoin and the Dogechain network is that the latter can use DOGE through a bridging mechanism. DOGE holders can receive WDoge (Wrapped Doge) and exchange their WDoge for Dogecoin.
This decentralized blockchain uses the IBTF Proof of Stake (PoS) consensus protocol to allow the participation of the community. DC token holders can propose ideas, vote, assign authority, and help develop the network.
According to the team behind Dogechain, it has gathered at least 58,000 wallets and processed around 480,000 transactions after its launch.
Some Features of DC, the Dogecoin Native Token
As explained above, the Dogechain native token is DC, not DOGE, although WDoge has functionalities similar to DC on this network.
DC allows paying gas fees on the network while being a governance token to propose ideas, make decisions, and vote. It is also an access token to boost smart contracts, dApps, and transactions within Dogechain.
The total supply of DC is 1 trillion units, 3% of which has gone to airdrops. The network released 15% on September 1st and will unlock 85% will be unlocked over a year.
Relevant Characteristics of Dogechain to Keep in Mind
Despite the significant boom of these new projects, they pose a high risk for investors. Other projects have used the prominence of Dogecoin to boost themselves before, but this one has achieved much more relevance.
There are no details of the dynamics of the announced airdrops yet. Meanwhile, the network plans to release 85% of the total DC supply over the following 12 months. Therefore, strong adoption of Dogechain is necessary to keep the price of DC stable.
Despite the decentralization of this network and its security procedures, nobody knows the developers of this network yet. Although there are successful projects whose developers remain anonymous, anonymity generates mistrust and lends itself to bad practices.
The Dogecoin Foundation Stresses that Dogechain is not Dogecoin
Billy Markus, one of the founders of Dogecoin, has turned down a USD 14 million offer to promote Dogechain. The community applauded his decision, although he stopped participating in Dogecoin some years ago.
Despite the harsh criticism against DC, it has gained much ground while many dApps operate in this ecosystem. Cryptocurrency exchange KuCoin was the first to list this token, which boosted its price.
By Alexander Salazar
