The Dogecoin Foundation behind DOGE has joined forces with the founder of Ethereum, Vitalik ButerinThe idea is to design a “Community Staking” system based on the Proof-of-Stake (PoS) consensus mechanism.
The event comes months after the foundation announced at the Bitcoin ESG conference that it was moving Dogecoin from Proof-of-Work to Proof-of-Stake.
What is Community Staking?
Community staking is a version of PoS that allows all members of the community, not just whales, to earn rewards for their participation and contribution to the dogecoin ecosystem. Additionally, users will be able to give back to the entire community through charitable giving.
The foundation also collaborates with other projects, including the PoS wallet project Gigawallet and the Dogecoin JavaScript library Libdogecoin.
According to the latest update, “community staking” is already in the testing phase. The foundation wrote:
In the next few months, Libdogecoin and GigaWallet projects will start to take shape. We already have a few early adopters interested in using them in their projects. These early projects are aimed at building a solid foundation. The upcoming projects will aim to improve transaction throughput and scale.
Moving from PoW to PoS
Dogecoin was originally built as a PoW cryptocurrency, like Bitcoin. However, there have been a lot of arguments recently about the energy efficiency of PoW projects. Recall that even Elon Musk’s Tesla stopped accepting BTC for its products earlier this year, citing environmental concerns. The announcement caused a major correction across the crypto market.
Following Musk’s tweet, bitcoin’s price immediately fell, losing $3,000 in less than 15 minutes. Bitcoin traded at nearly $55,000 and fell below $52,000 within minutes.
But Dogecoin isn’t the only project planning to move to PoS next year. Ethereum’s move to PoS has been in the works for quite some time now and will play a major role in the Ethereum 2.0 update.
