How does one provide utility for beloved meme coin Dogecoin (DOGE), when the blockchain on which DOGE is built doesn't support smart contracts?
Simple: Develop a brand new proof-of-stake blockchain using the Polygon Edge framework, implement a bridge between DOGE and this new blockchain, and get to building games, decentralised finance (DeFi) protocols, NFT platforms, or anything else you want with it.
Then, theoretically, DOGE becomes more than just a speculative crypto asset, it actually has some genuine utility and we all go to the moon.
Such is the concept behind Dogechain, a new blockchain that “supercharges $Dogecoin to bring crypto applications like NFTs, games, and DeFi to the $Dogecoin community”.
Be warned: Dogechain and its native DC cryptocurrency have nought to do with the Dogecoin Foundation, thus the foundation’s reputation does not precede the project.
Claims in paid media that Dogecoin launched a "Dogechain" test network are false. Neither @Dogecoin/@dogecoin_devs, nor @BillyM2k, @ummjackson or others associated with @DogecoinFdn are in any way affiliated with the token.That hasn’t stopped Dogechain from taking off like a speeding bullet though.— ⬢ Jens Wiechers ⬡ ???????? (he/they) (@jwiechers) August 16, 2022
DC token – which is used for staking and governance – has rallied some 342% in the past three days alone.
Still not as impressive as the 440% rally seen in the opening days when DC token launched in August, and still highly dubious as to how long these gains will stick around for.
DC is primarily traded on the mid-tier Gate.io and KuCoin exchanges, as well as the Uniswap decentralised exchange.
Trending name aside, Dogechain (DC) is highly illiquid, as evidenced by the wide bid/ask spread on Gate.io. As such, holders face bloated costs should they choose to cash out now.
Wide bid/ask spreads cause a discounted price for sellers – Source: gate.io
Then again, the Dogechain governance community – sorry, Dogegress – has voted overwhelmingly to slash total DC supply by 80%, which will undoubtedly drive up the circulating value.
Maybe Dogechain will go to the moon just yet, though any long-term sustainability rests on the community now.
Can developers and users create a thriving ecosystem for DC and DOGE to mature in, or are they both headed for a trip to the farm?
Read more on Proactive Investors AU
