A recent poll asking the Dogecoin community whether they would be interested in staking their DOGE tokens ignited a fresh debate around a possible jumping to proof of stake.
Pseudonymous Dogecoin core developer Mishaboar made it known that he is vehemently opposed to such a move while highlighting several issues that could arise from the potential transition.
Dogecoin’s Transition To PoS Could Be Catastrophic: Dev Mishaboar
Mishaboar took to X (formerly Twitter) on Aug. 20 to share his concerns about the possible impact a move to proof of stake (PoS) could have on Dogecoin’s network amid swirling rumours and suspicions concerning such a move.
If Dogecoin was stakeable, would you stake it? $DOGE
— Marshall Hayner (@MarshallHayner) August 20, 2023
Dogecoin currently uses the proof of work consensus algorithm, which is the same as Bitcoin’s. This mechanism uses mining to validate the network and requires miners to use specialized computers to solve difficult puzzles in order to ultimately add the latest block of transactions to the chain of record.
Prominent crypto pundits have previously advocated for Dogecoin’s migration from the energy-guzzling proof of work to proof of stake, including Vitalik Buterin. Vitalik Buterin set tongues wagging after the Ethereum network completed its merge to PoS when he said he was “hopeful Dogecoin is going to evolve to proof of stake sometime soon.”
However, dev Mishaboar has indicated that if such a switch is made, he will leave the famous dog-depicting cryptocurrency for another crypto network with a PoW consensus.
“If this refers to a remote possibility of Doge ever switching to PoS, after what I have seen over the past two years, I would probably then move to another PoW crypto and customize the logo in my wallet to have a dog in it.”
He went on to discuss the implications further, pointing out that such a conversion might initiate the next Dogecoin blockchain fork, to preserve the old PoW-based DOGE. He noted there would be a major power imbalance that could come from a PoS switch as exchanges control a significant amount of a token’s supply. In other words, a shift to a PoS system could reduce governance and involvement in the DOGE holders’ community.
Mishaboar also noted that Dogecoin may face increased regulatory hurdles if PoS is deployed.
Moreover, the core developer explained that cryptocurrencies that have switched to PoS have been overhyped, with most of them failing to meet expectations and falling considerably or becoming so centralized that it conflicts with the fundamental tenets of cryptocurrency.
Proof-of-Work Vs. Proof-of-Stake: Is PoS Decisively Better For Doge?
Some crypto community members said they support a Dogecoin migration to PoS as this consensus mechanism is way ahead of PoW when you consider parameters such as energy efficiency and better scalability. A strong argument in favour of PoS is that it “puts the power back in the hands of the people and away from the giant mining operations.”
Nonetheless, others agree with Mishaboar.
While the developer admits that a PoS consensus has some benefits, such as lower energy usage and a faster transaction output, he maintains that a transition from PoW does not align with Dogecoin’s future goals. According to Mishaboar, the Dogecoin network can integrate with payment channels and providers for faster transactions instead of switching.