What is Dogechain? Dogecoin Meets NFTs, Games & DeFi
Dogecoin blew up last year with huge publicity helped in no small part by Elon Musk’s endorsement on Twitter. The meme cryptocurrency really captured public attention going on to hit new all-time highs at its peak.
Released to the public in 2014, Dogecoin has become one of the most popular cryptocurrencies along with Bitcoin and Ethereum.
Now there is a new blockchain named Dogechain built by Dogecoin holders for Dogecoin holders that aims to make a splash.
What Is Dogechain?
The Dogecoin community began to grow exponentially, however, the $DOGE cryptocurrency has a single use case that is to be accepted as a means of payment for exchanging goods and services online.
As it lacks smart contract functionality, Dogecoin users cannot readily use their tokens in gaming, DeFi, or NFTs.
This is the unfortunate shortcoming of Dogecoin when blockchain technology increasingly promises extensive utility through smart contracts. Dogechain is designed to fix this.
Dogechain is a new EVM-compatible blockchain that aims to complete the original Dogecoin cryptocurrency. Dogechain looks to bring true utility to Dogecoin.
The chain exists 100% independently of the Dogecoin blockchain. It is an independent Polygon edge chain that uses wrapped doge as gas. Dogechain doesn’t compete with Dogecoin but rather complements it, adding additional utility.
Simply put, the chain was created to bring crypto applications like NFTs, games, and the ever-growing DeFi ecosystem to the $Dogecoin users.
Dogechain: The Features
As mentioned, Dogechain relies on the Polygon Edge framework to build its EVM- compatible blockchain. This allows Dogechain to be compatible with dApps deployed on Ethereum.
Not only that, EVM is at the core of the Ethereum blockchain and plays an instrumental role in creating dApps. It also allows developers to build and deploy solutions and protocols much more quickly.
In addition, Dogechain has the ability to improve the Web3 ecosystem by bringing utility to the most popular memecoin. It promises to increase retail adoption due to Dogecoin’s popularity amongst retail holders, by creating a thriving ecosystem of dApps. The blockchain’s popularity should also increase demand for the native cryptocurrency of Dogechain, the $DC token.
With its capacity for high throughput and decentralization, token users will not suffer from concerns like other PoW tokens, such as low transactions per second, public chain congestion, centralized mining, and high transaction fees.
PoS For The Doge Ecosystem
Dogechain is based on a predefined number of validators to facilitate its Proof-of-Stake (PoS) consensus mechanism, a setup that leads to shorter block times and lower fees.
In PoS, users with the highest number of tokens staked are allowed to become validators and produce blocks.
The chain also employs slashing scenarios, therefore, leading to security, decentralization, reliability, transparency, stability, and block finality.
Dogechain and the Dogecoin blockchain have a symbiotic relationship. This allows users to lock their Dogecoin on the cross-chain protocol and receive $wDOGE on the Dogechain blockchain.
Then, users can use these $wDOGE tokens to deploy and interact with smart contracts, pay transaction fees, and participate in the governance of Dogechain. Conversely, they can destroy $wDOGE and reclaim their native Dogecoin directly to their wallets.
Core Features of Dogechain
Dogechain consists of 4 key principles, including:
- IBFT Proof-of-Stake (PoS) consensus allows users to participate in the network ensuring a permissionless and decentralized blockchain.
- EVM-compatible, helping existing Ethereum smart contracts to easily be migrated to Dogechain without requiring any further modification.
- Decentralized Governance, meaning community members or token holders can make proposals, delegate, vote on the blockchain parameters and events, as well as, influence governance decisions.
- Cross-chain compatibility makes Dogecoin easily utilized on the Dogechain network by wrapping the Dogecoin via the Dogechain bridge, and sending it back to the Dogecoin network as needed.
The main goal of Dogechain is to increase the use cases of Dogecoin. To achieve this, Dogecoin users can wrap their $DOGE into Dogechain smart contracts and receive $wDOGE tokens in return.
$wDOGE tokens live on the Dogechain blockchain that allows users to access an ecosystem of DeFi products, NFTs and GameFi.
As a result, it can be seen that $DOGE holders can participate in the NFT market by minting and exchanging NFTs and paying for gas with $DOGE, participating in GameFi opportunities, and engaging with the growing blockchain gaming community.
Users can also swap tokens and speculate on their value on decentralized exchanges, or access advanced financial instruments such as staking, lending, borrowing, and liquidity mining.
Moreover, by holding $DOGE, users can take part in the upcoming metaverse revolution through Dogechain-powered NFTs or DAOs, and many more.
How Does Dogechain Work?
The $DC token is the native currency of the Dogechain network. The token is used for governance, staking incentives, and eventually gas on Dogechain.
There are two options to pay transaction fees on Dogechain, including $wDOGE and $DC. Any account passing the community authority and authentication will be allowed to join the Validator Set.
Staking is on the way to Dogechain to allow $DC holders to stake their $DC tokens and earn rewards.
There is no newly minted block reward for block production and all transaction fees will be valued in either $wDOGE or $DC.
DogeChain features a vesting and yield system based on the Curve’s veCRV mechanism, $veDC, to allow users to lock up their $DC for up to 4 years to earn an exponential amount of $veDC as a reward.
However, $veDC is not a transferable token, so it cannot be traded on liquid markets. It is more akin to an account-based point system that signifies the vesting duration of the wallet’s locked $veDC tokens within the protocol.
Each $veDC will have 1 vote in governance. When you stake 1 $DC tokens for the maximum time, 4 years, it would then generate 4 $veDC. You also can trade in your $veDC tokens for $DC tokens, once the vesting period is over.
Note that $veDC is non-transferable and each account can only have a single lock duration, meaning a single address cannot lock $DC tokens for different time lengths.
As said, $veDC tokens cannot be sold or transferred. However, users can use it to earn an extra airdrop of $DC tokens, vote on how the protocol gives out developer grants, and receive random prizes or lottery rewards.
Not only that, but $veDC tokens also serve as a network validator. As such, a certain number of veDC tokens will be required of all validators.
The veDC model is also integral to the staking mechanism of Dogechain. Users need to lock DC to receive veDC, which can then be staked with the validator of their choice.
Dogechain: Opening the Ecosystem
It’s easy to see that Dogechain opens many opportunities for the $DOGE community in the blockchain space through a wide range of potential applications.
Dogechain will provide its users with the capability to publish their own NFTs, therefore, Dogechain NFT owners will be able to integrate their NFTs into the existing NFT landscape.
As an EVM-compatible blockchain, Dogechain can be seamlessly integrated with other DeFi protocols such as Uniswap and SushiSwap.
Meanwhile, $wDOGE and $DC are DeFi-capable cryptocurrencies that can be locked in various liquidity pools and provide rewards to their holders. They can also use them as collateral on decentralized lending platforms.
Layer 2 solutions of Polygon Edge architecture also will enable Dogechain to make improvements on their existing transaction speeds in DeFi and address some privacy concerns.
Developers can build entire virtual worlds and blockchain games on the Dogechain smart contract framework. This also means $wDOGE and $DC holders can participate in virtual gaming economies and share digital assets in their favorite metaverses.
To date, Dogechain has already processed 30 million transactions, with around 2 Million plus per day. (see Dogechain’s Mainnet Explorer for more info on the latest stats).
Additionally, more than 232,000 wallets have been created and have bridged over 300 million $DOGE on the chain.
To learn more about Dogechain – just click here!