Dogecoin has seen its value slump by almost 10% in the last seven days after a core developer Michi Lumin disclosed that there are no definite plans to move to Proof of Stake for the network.
Lumin tweeted on December 29 that although influencers might have millions of followers and speak with authority does not mean they are familiar with the inside scoop of Dogecoin. “Just because one says a validation method is changing doesn’t mean it is,” he added.
Dogecoin Isn’t Moving to PoS
This disclaimer comes amidst the speculation that DOGE plans to migrate into a proof of stake network.
Since Ethereum transitioned to PoS in September, Vitalik Buterin said he hopes to see Dogecoin and Zcash transition to PoS. But it was also because of an announcement by Dogecoin Foundation that it is working with Buterin on a staking concept for popular memecoin.
Many people assumed this to mean a transition to PoS for Doge. Lumin clarified that this was not the plan for the network. He added that because someone is famous and influential does not mean they have more insight into the network.
The memecoin core developer explained that the Dogecoin network is more like Bitcoin in terms of its technological age than the modern Ethereum-like networks. “It is not possible for, nor is it planned for, an individual, organization, or body to “move” or “shift” or “change” #dogecoin to PoS,” he added.
This means that Dogecoin Foundation will have to get the approval of the network node validators before there can be a switch.
Lumin added that there is currently a proposal about the network switching to proof of stake. But the approach might be different from the traditional POS.
Foundation Creates Development Fund
Meanwhile, Dogecoin saw a 3% rise in value in the last 24 hours after the Dogecoin Foundation announced that it is establishing a Dogecoin Core development fund and has dedicated 5 million DOGE to the fund.
The wallet currently holds 4,999,999.90 DOGE tokens worth nearly $342,000. It is a multi-sig wallet managed by core developers, including Michi Lunin.
The memecoin currently trades at $0.0701 and is down 60% on the year-to-date metrics.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.