From the initial meme to the current top ten market capitalization, Dogecoin is not only a legend of going from a joke to innovation, but also a vivid interpretation of the PoW spirit of "everyone can mine and the benefits are fairly distributed."
On the evening of August 26, BlockBeats invited Ben Weng, vice president of products at mining machine manufacturer ElphaPex, business manager Payne Cong, ViaBTC mining pool representative Paphy Cai, HashHouse vice president of business development Denny Xing, and core member of the Dogecoin community Song to discuss the long-term potential and future opportunities of Doge mining on the theme of "From joke coins to innovation-driven, deciphering the transformation of the Doge mining ecosystem."
BlockBeats : Welcome to today's Space. We will discuss the long-term development of Dogecoin mining, exploring multiple dimensions, from hardware to community, from finance to culture. First, please introduce yourselves.
Ben Weng : Hi everyone, I'm Ben, and I'm from the San Francisco Bay Area. Before joining ElphaPex, I worked as a software engineer at various tech companies, bringing over a decade of development experience. By chance, I discovered crypto and was deeply drawn to its decentralized and distributed nature. Currently, at ElphaPex, I'm primarily responsible for product management and roadmap-related work.
Payne Cong : Hello everyone, I'm Payne Cong, currently in charge of business development and sales at ElphaPex. My background is similar to Ben's, having worked at several large Bay Area tech companies, including Tesla, TikTok, and Postmates, in various roles before entering the crypto industry. I believe both the crypto market and the mining industry are currently experiencing excellent opportunities. I'm excited to share some insights on Dogecoin mining with you today.
Denny Xing : Hello everyone, I'm Denny, and I'm the Vice President of Business Development at HashHouse. HashHouse provides a one-stop mining solution provider, including containerized or factory-style oil/water cooling systems, transformers, power distribution cabinets, smart PDUs, and more. To date, we have delivered approximately 400 megawatts of solutions globally, primarily to customers in North America, Africa, and Australia. Before joining HashHouse, I focused on the crypto mining industry, including mining pool firmware, equipment financing, and the operations and power management of large-scale mining projects in North America.
Song : Hello everyone, my name is Song. I'm currently an independent developer in the Dogecoin community, based in South Korea. I invested heavily in Dogecoin in 2016, joined the Asian Dogecoin community in 2018/2019, and have been actively involved in building the ecosystem ever since. Currently, I'm primarily developing the smart contract language for Dogecoin's Layer 1. Similar to Ethereum's Solidity, I believe the UTXO model requires a similar development language. This language, called Cardity, is expected to be released this year and will facilitate the development of applications based on UTXO. Its core logic is derived from derivative concepts such as ordinals and inscriptions.
I'm also working on a project called cardipool, which aims to build a decentralized PoW mining pool. Compared to the lack of transparency in existing centralized mining pools, cardipool aims to make hashrate access, block production, and the hashing process completely open and transparent, allowing everyone to participate in mining pool construction. Development of the Cardity protocol began two or three years ago. It's the largest ecosystem protocol on Dogecoin's L1 and the first to have a DEX and ecosystem. Currently, this ecosystem is built entirely on Dogecoin, independent of the EVM or other chains.
Paphy Cai : Hello everyone, I'm Paphy. I entered the PoW mining industry in 2017 and have been working with mining pools for many years. In 2020, I joined the ViaBTC mining pool. ViaBTC is currently ranked third among global Bitcoin mining pools and has long been ranked first among Litecoin and Dogecoin mining pools.
BlockBeats: Thank you for your introductions, teachers. Let's get started. First, I'd like to discuss Dogecoin, which has been around for over a decade. From its earliest days as a "joke coin," it still maintains considerable hashrate and community activity. What are your thoughts on the current level of participation in Dogecoin mining? Compared to a few years ago, what are the key changes in the hashrate structure and mining ecosystem?
Ben Weng : As everyone knows, Dogecoin was first created as a lighthearted joke in 2013. In our view at ElphaPex, it has always been a light-hearted and active token with a very welcoming community atmosphere. Its cute image makes it more easily accepted by the public.
Furthermore, Dogecoin has been around for over a decade and utilizes a PoW consensus mechanism, ensuring its security. Compared to Bitcoin, Dogecoin's hash rate concentration is less concentrated, giving small and medium-sized miners greater advantages in terms of participation, unlike Bitcoin, which is highly concentrated in the hands of large institutions. This is a key difference we've observed in terms of hash rate structure and ecosystem.
Payne Cong : I believe that the popularity of Dogecoin mining has increased significantly over the past two years. There are several reasons for this. First, it's the price. As the price rises, Dogecoin has attracted more attention from both retail and institutional investors, and market attention to it continues to grow.
Second, there's the long-term support and engagement of the community. For example, Elon Musk, a prominent influencer, has publicly championed Dogecoin. On the developer side, the Dogecoin Foundation and community developers like Song have driven the emergence of more applications, including Layer 1 and Layer 2, as well as payment functions. These have expanded use cases and boosted the currency's popularity.
Third, the mining threshold is relatively low. Compared with Bitcoin, Dogecoin requires lower electricity costs and a smaller computing power scale, making it more friendly to small and medium-sized miners, and the competition is not as fierce as the Bitcoin network.
Fourth, there's growing institutional interest. In recent years, institutions like Grayscale have launched Dogecoin ETFs, some publicly listed companies have begun incorporating Dogecoin into their financial strategies, and traditional financial capital, such as family offices and hedge funds, has entered the mining sector. The influx of these funds and approaches has brought increased liquidity, accelerated the industry's pace, and driven the development of the mining ecosystem. Overall, with increasing institutional participation, the Dogecoin hashrate structure is gradually becoming more institutional. This has brought new momentum and vitality to the mining ecosystem and has also driven the continued rise in interest in the industry.
BlockBeats : Crypto-equity is undoubtedly the hottest trend right now. Several US-listed companies have recently purchased significant amounts of Dogecoin. What are your thoughts on this mismatch between traditional financial institutions holding the coin and mining it? Does this mean Dogecoin has entered a new cyclical phase?
Ben Weng : Regarding the relationship between holding coins and mining, I personally believe they are complementary. When we communicate with many mining machine customers, we find that they participate in mining because they often have relatively cheap or even free energy.
For example, in some regions, electricity costs are lower, or during periods of low demand, the grid provides extremely cheap or even free electricity. In these situations, mining not only helps regulate the grid but also converts low-cost electricity into a financial asset. From this perspective, mining and holding cryptocurrency are not mutually exclusive options; rather, they coexist and function in tandem.
Another client raised an interesting point: they believe Dogecoin can actually serve as a medium for electricity storage and consumption. When electricity is cheap in a certain region, electricity can be converted into tokens through mining; in other regions where electricity is expensive, these tokens can be sold and redeemed for electricity. This effectively establishes a cross-regional electricity value conversion mechanism. Therefore, I believe that both roles are extremely important and form a healthy, complementary relationship within the entire ecosystem.
Payne Cong : Institutional investors, whether retail or institutional, are often more focused on making their company more attractive to investors. One key way to do this is by telling a good story—both through treasury (holding coins) and mining. The two are complementary, and for large, publicly listed companies, they should coexist.
Essentially, it's all about "doing the right thing at the right time." For example, when cryptocurrency prices are low, it's helpful to increase investment in both coins and mining equipment. Buying coins is part of treasury management, which is perfectly acceptable for investors with a long-term outlook and strong faith. Mining and mining equipment, on the other hand, generate cash flow for listed companies. In IPOs and secondary markets, these assets can create a multiplier effect on valuation, boosting the company's overall valuation and positively impacting its stock price.
When market conditions improve, different companies adopt different strategies. For example, some choose to hold mined tokens long-term (HODL), while others immediately cash out, exchanging mined tokens for USDT or USDC to pay electricity bills or purchase more mining equipment. These diverse strategies create a diverse combination of treasury and mining, offering a richer range of gameplay opportunities.
This also means that Dogecoin may have entered a new phase in its development cycle. In the future, more institutional investors, more institutional funds, and more listed companies will participate. This will have a positive impact from the perspective of both funds and popularity.
Recent news confirms this trend. Companies like Dogehash Technologies, for example, draw more from traditional finance. While not experts in the mining field, they recognize the growth potential within this sector. These companies bring not only capital but also a deep understanding of the capital markets and the ability to manage resources. Their approach is simple: not just to participate in mining, but also to maximize their company's valuation in the capital markets. This entry of traditional financial forces may impact the existing mining landscape, but this impact is positive and will drive further development of the industry.
Paphy Cai : I checked the data today and discovered an interesting phenomenon: the time it takes for the Litecoin network's hash rate to double is showing a significant decrease. In the most recent cycle, from 1.2P to 2.4P, it took only 10 months. The cycle before that, from 600T to 1.2P, took about 21 months. And even earlier, from 300T to 600T, it took about 44 months. It can be seen that the doubling time has almost halved in each of the three cycles. This suggests two things: first, rapid iterations in device technology are driving hash rate growth; second, user engagement is also increasing.
The second point is about cryptocurrency stocks. As the industry develops, Dogecoin mining has gradually attracted the attention of traditional finance. Traditional financial institutions often enter the market using the methods they are most familiar with. Initially, the most common approach is to directly hold the coins, which offers lower risk and the fastest entry point. However, as scale expands and strategies deepen, they will gradually incorporate mining. Mining can establish closer connections with various resource chains and achieve more stable and sustained Dogecoin growth at a lower capital cost. As to whether this marks the beginning of a new cycle, I believe people in different roles and at different stages of the supply chain will have different opinions.
Denny Xing : Based on my industry experience, the Dogecoin ecosystem and community development have broadly evolved through three phases. The first phase was the early ecosystem, with retail investors and a small number of pioneers participating in Litecoin and Scrypt mining. At the time, the mining pool's slogan was "Mine Litecoin, get Dogecoin for free." As Dogecoin grew, the slogan gradually shifted to "Mine Dogecoin, get Litecoin for free," and Litecoin mining experienced rapid growth.
The second phase saw key opinion leaders and public figures in the market begin to endorse Dogecoin, boosting its market acceptance. Dogecoin gradually evolved from participation by retail investors and niche miners to widespread adoption by a wider range of miners.
The third stage saw the beginning of large-scale institutional involvement. Whether through the establishment of a treasury or large-scale investment and mining by listed companies, this all reflects a key point: "going beyond the market." The flourishing Dogecoin ecosystem reflects its transition from cyclical speculation to long-term value investment. This signifies its acceptance not only by retail investors but also by mature investors and institutions. Therefore, we can view the current stage as a new milestone in Dogecoin's development: it has moved from niche to mainstream, becoming an emerging and widely accepted asset.
Song : I've recently been in contact with a number of cryptocurrency-equity companies, and most of them are interested in establishing Dogecoin reserves. I've also promoted this to some publicly listed companies and my friends' companies. Many companies initially hope to attract major Dogecoin holders to transfer their coins to them in exchange for profits in the stock market. However, those willing to actually invest their cash in Dogecoin are still relatively rare. Instead, they prefer to first design a suitable product structure to attract these large holders.
I've previously mentioned on Twitter that the POS mechanism isn't well-suited to the "coin-share" model. POS is more like a financial game, requiring continuous innovation. However, Ethereum's innovation has slowed in recent years, and DeFi's subsequent breakthroughs have been limited. Ultimately, the value of the platform remains firmly anchored by the "coin-share" model. Under the POS model, capital costs continue to decline, similar to early liquidity mining, where new tokens are generated primarily through user tokens. This differs from the Proof-of-Work (PoW) model. In the PoW model of Bitcoin and Dogecoin, mining involves real costs such as energy, chips, and labor, making it difficult to implement a cost-reduction mechanism by simply issuing tokens out of thin air. This is why I believe Dogecoin is particularly well-suited to the "coin-share" model—among the top ten cryptocurrencies globally by market capitalization, only Bitcoin and Dogecoin meet this requirement.
Furthermore, I believe the future development of cryptocurrency-backed companies will require ecosystem support. Simply issuing additional shares and raising capital from the market won't sustain long-term growth. While Bitcoin's value growth can rely on national recognition, Dogecoin relies on a wider range of application scenarios and ecosystem development. It doesn't require rebuilding an EVM chain like Ethereum, but rather expanding the use cases of the token, such as in payment, development languages, and ecosystem support, to promote Dogecoin's adoption in more scenarios.
From my conversations with these companies, I understand that in the medium term, in addition to exploring the coin-to-share model, they will gradually invest more resources in ecosystem development. I believe this is key to future development. After all, fiat currency is infinite, while cryptocurrency is finite. Regardless, building reserves of finite crypto assets is an irreversible trend. Therefore, we should pay attention not only to the coin-to-share model itself, but also to whether these companies have actually purchased Dogecoin and whether they are investing in ecosystem development.
BlockBeats: From an external perspective, mining has long been a crowded market, with high barriers to entry for major players and a stable ecosystem. Why did you choose to refocus on Dogecoin mining at this point in time? How does Elphapex understand the space for "telling a new story"?
Ben Weng : As you mentioned, the mining industry has gradually entered a red ocean track. So why do we still choose to invest in Dogecoin? In our opinion, there are several reasons.
First, while most people are focused on Bitcoin and Ethereum, Dogecoin mining offers a certain level of competitive differentiation. Unlike Bitcoin mining, it's not as competitive and may instead present some blue ocean opportunities. Second, Dogecoin's inflation model differs from Bitcoin's. While Bitcoin's supply is fixed and cannot be increased, Dogecoin has a fixed annual supply, which is closer to the real-world currency model. This means mining can be continuous, and miners can more clearly predict their long-term income.
Furthermore, in terms of energy efficiency, Dogecoin mining is more efficient than Bitcoin in some cases. For the same kilowatt-hour of electricity, mining Dogecoin may yield higher returns in fiat currency than mining Bitcoin.
Another trend worth noting is the rise of artificial intelligence and AI agents. In the future, AI agents will often require a convenient transaction medium to complete chain tasks. For example, when helping users book flights or hotels, payment will be required. In this regard, Dogecoin, due to its lightweight nature, community attributes, and meme-based cultural characteristics, is more easily accepted by the public. Furthermore, its use of PoW consensus has long-standing security verification. Therefore, we believe Dogecoin has the potential to assume a wider role as a transaction medium in AI applications, particularly in lightweight transactions and point-based payments.
Looking further ahead, Musk has publicly promoted Dogecoin many times before, and it is possible that he will introduce it into the Starlink or X ecosystem in the future. All of this gives us confidence in the prospects of Dogecoin.
Payne Cong : Ben just mentioned an interesting topic: AI agent transaction scenarios. While this may be a slight digression, I'd like to add this: Dogecoin's properties make it more suitable as a medium of exchange than many other cryptocurrencies. Bitcoin is more of a store of value, while Dogecoin, with its fixed inflation model, possesses more currency properties and can sustain transactions. With the advancement of AI, many future application scenarios will require AI agents to directly execute operations. The cryptocurrency these agents or developers will choose as a medium of exchange is a topic worth watching. In my opinion, Dogecoin holds great potential in this area. I've seen data that suggests approximately 10% to 20% of crypto transactions are already being processed by AI agents. As this proportion increases, transaction volume will also continue to grow. Ultimately, which currency will become the dominant medium of exchange will be an interesting and important question.
Regarding mining itself, I think the key lies in the algorithm used. Dogecoin mining isn't as competitive as Bitcoin right now, but as more institutional investors and miners enter the market, competition will inevitably intensify. In the past one or two years, when institutional attention wasn't as high, we often talked about being the "first to try." If you observe the evolution of network hashrate difficulty, you'll see that the rate of increase has accelerated over the past ten months. As more people enter the market, competition naturally intensifies. Therefore, miners need to consider how to enter earlier and how to rapidly scale within a short period of time—this is essentially "doing the right thing at the right time." The crypto market is cyclical, and seizing opportunities within these cycles is a question every miner must consider.
For us at ElphaPex, Dogecoin mining isn't a recent focus; it's always been our primary focus. As a company, we've always aspired to be the manufacturer and supplier of the highest-quality Dogecoin mining machines. Over the past six to seven years, we've continuously engaged in research and development, testing, and continuous improvement of our machines. While our first-generation product, the DG1, was released early last year, we had already accumulated four to five years of technological expertise prior to that.
Our strength lies in our R&D capabilities. We will continue to develop a variety of different models. In addition to air-cooled mining machines, we've also developed the first water-cooled model for Dogecoin. Last year, we also released the DG Home home computer. We hope to promote the healthy and sustainable development of the Dogecoin mining market while also decentralizing more computing power. For example, we hope to attract more retail users, allowing even those without mining experience to experience mining and contribute to a decentralized hash rate.
In terms of marketing, we have a highly professional team dedicated to making ElphaPex a "cool" company. Whether it's mining rig design, peripheral products, promotional events, or even the potential for diverse home mining rigs in the future, we aim to continuously raise the bar and help set new benchmarks for the Dogecoin mining ecosystem. We believe that through continuous R&D, innovation, and promotion, we can foster a more stable and healthy development of the Dogecoin mining ecosystem. This is the direction we're constantly striving for.
Song : I've been speaking to the community since 2018 and 2019, and I proposed at the time that Dogecoin should play a crucial role in the future interaction between robots and AI. AI has become an undeniable future trend, and cryptocurrencies play a crucial role in this process. AI requires computing power, chips, and other support, and Proof of Work (PoW) is indispensable. Ethereum's PoW once drove the development of hardware from companies like NVIDIA, and I believe Dogecoin will also play a significant role in the future.
The current industry discussion is focused more on centralization, as the entry of large institutions and Wall Street capital has shifted attention. However, I remain steadfast in my belief in decentralization. Dogecoin's PoW model, stake distribution, and community foundation make it, in my opinion, the project closest to the "ideal form of currency." For a coin that began as a joke to have grown to where it is today, ranking among the top ten in global market capitalization, is a truly rare opportunity, and similar opportunities may be difficult to come by in the future.
So how do we seize this opportunity? First, we have been promoting community development, including language support such as Cardity, to encourage developers to build more applications on Dogecoin. Many people mistakenly believe that they must rely on the EVM to innovate, but the real innovation in the past two or three years is actually the inscription system based on UTXO. Although suppressed by some centralized platforms, there are still developers who insist on exploring the UTXO model. Compared with EVM, UTXO is more secure and more suitable for businesses that carry large amounts of funds. There are a large number of security vulnerabilities and development risks in the EVM ecosystem, which is not suitable for long-term financial-grade development. With the advancement of AI, we also have the opportunity to build a development language that is more advanced and lower-level than Solidity, creating a secure foundation for Web3.
Regarding mining, we strongly support PoW and promote decentralized mining protocols. We hope to collaborate with major mining pools to increase hashrate transparency, reduce unnecessary competition, and reduce energy waste, ultimately leading to a healthier mining environment. Unlike Bitcoin, Dogecoin's miners are more dispersed, resulting in a relatively lower cost-performance ratio. This, however, is ideal for building a globally decentralized mining network. Dogecoin's fixed annual supply of 5 billion coins provides a long-term entry opportunity for new users, but costs will also gradually increase over time.
Overall, I believe there's a 90% chance that Dogecoin's market capitalization will exceed $1 trillion within the next decade. Therefore, now is the perfect time to enter the Dogecoin mining, ecosystem development, and investment landscape.
BlockBeats: More and more users are concerned not only with mining machine performance but also operational details like cooling, noise, and energy efficiency. What are your thoughts on the evolving trends in mining pool services and cooling solutions for Dogecoin mining? Will there be more solutions for average users or lightweight participants in the future?
Paphy Cai : Thank you, host. I'd like to emphasize that ViaBTC is not an industry expert when it comes to cooling equipment or mining machine efficiency optimization. We focus more on online businesses, such as mining financial services, fund management, and exchange-related products. Therefore, when it comes to topics like hardware-level cooling optimization, ElphaPex or HashHouse may be more qualified to speak.
However, with the development of the industry, especially as the Dogecoin ecosystem enters a new phase, more features and solutions are finding room to flourish, enabling longer-term service provision. For example, in the previous cycle, including Dogecoin as a collateralized lending asset was extremely challenging for most asset management platforms. However, at this stage, Dogecoin, second only to Bitcoin in PoW coin market capitalization, has already entered the top ten (ranked ninth). This means that nearly all asset management platforms are taking Dogecoin seriously and integrating it into mainstream assets. This is also true for ViaBTC. We have already included Dogecoin in our collateralized lending system and will further optimize its fees and lending service options in the future.
Denny Xing : Regarding cooling solutions, as the Dogecoin mining community becomes more diverse and institutionalized, miners are increasingly accepting of water and oil cooling. This reflects customers' increasing standards for operational efficiency and heat dissipation optimization. We are also providing corresponding solutions.
For example, we maintain close collaboration with the ElphaPex team on product and R&D, optimizing heat dissipation structures to ensure stable chip operation under higher operating conditions and temperatures. To enhance heat dissipation efficiency, we collaborated with a leading global brand to develop a high-throughput, high-fin-density dry cooler. This pipeline design achieves high flow rates and minimal temperature differences, ensuring efficient operation with zero water consumption even at an ambient temperature of 45°C.
In terms of energy efficiency, we have independently developed an intelligent management system that works with leading brand EC fans and inverters to automatically adjust the speed of pumps and fans according to real-time load and ambient temperature conditions, thereby reducing unnecessary power consumption and lowering noise.
Furthermore, these products can be widely used in daily life, such as residential heating, as well as waste heat recovery projects in industry and agriculture. In animal husbandry and aquaculture, they can effectively provide high-energy heat and reduce overall operating costs. We also welcome partners in related industries to discuss and collaborate with us.
Dogecoin has always been a " BlockBeats coin," with a distinct community atmosphere distinct from other projects. What are your thoughts on the unique role of "miner" within Dogecoin culture? Is mining itself a continuation of the meme spirit?
Song : Dogecoin started out as a joke coin and a meme coin, so the community has always had both noisy and constructive voices. Looking back at the last cycle, Dogecoin skyrocketed to $0.74. At that time, Vitalik donated Dogecoin and promoted the establishment of the Dogecoin Foundation, hoping to transition Dogecoin to Proof-of-Stake (PoS). However, this initiative has been met with strong community opposition. The recent Monero 51% attack has also heightened the Dogecoin community's focus on the importance of PoW. We will continue to provide basic education and community education in this area.
The existence of the Dogecoin miner community is actually quite unique. In the past, miners, the crypto, and the blockchain community were relatively separate. Many miners lacked understanding of the crypto ecosystem and remained solely engaged in buying and selling. While some early miners participated in DeFi, overall participation was limited. I personally have always hoped to promote the integration of the miner community with the broader blockchain ecosystem.
For many years, I've consistently upheld the geek spirit, working diligently to promote development and community building. When I started my business in 2018 and 2019, I also single-handedly led the community. My philosophy is to not rely on centralized organizations, but rather to empower individuals around the world to spontaneously drive the Dogecoin community. For example, the Dogecoin event I organized in Dubai was entirely voluntary, but the feedback was very positive. Local Dogecoin communities have also gradually established themselves in Vietnam, the Bay Area, and other places. Today, there are numerous Dogecoin community organizations around the world.
I've always believed that miners should be part of the broader community. However, the reality is that there are few opportunities for miners to engage in dialogue with the community. Today's Space, for example, is a rare opportunity for such exchange. While noise and centralization are increasingly prevalent in the crypto world, miners embody the spirit of decentralization. They can enter and exit freely at any time, earning profits in their own way while also maintaining network security and transmission. This is the core spirit of blockchain. Unfortunately, many people only understand tokens, smart contracts, or the EVM, but fail to grasp the true nature of cryptocurrency. To me, the essence of cryptocurrency is the transmission and conversion of energy, a microcosm of the energy transformation of the universe.
Mining itself is a very meme-y and geeky activity, a "gene" that can be passed on and infect others. Once many miners start mining, they continue to participate, even becoming addicted. This same persistent motivation is also generated by crypto users who turn to mining. Therefore, I have been pondering how to truly integrate the crypto and mining communities. I believe one approach is decentralized mining pools. Cardipool is an example, and it could become the industry's first decentralized PoW mining pool. While some have attempted this before, it is extremely difficult, requiring the use of smart contracts and protocols. If we can truly connect the mining, crypto, and entire ecosystems, it will be a highly valuable endeavor. If successful, Dogecoin will be the biggest beneficiary. Bitcoin's highly concentrated mining population makes direct integration with decentralized mining pools unsuitable. Dogecoin, on the other hand, is primarily composed of small and medium-sized retail investors, making it a perfect fit for decentralized mining pool protocols. I believe this will brighten the future of Dogecoin. We must uphold the principle of decentralization and actively promote such exploration.
Paphy Cai : I saw a listener comment in the comments saying, "I haven't heard about PoW in a while. I almost forgot that wealth equality starts with mining." This remark really resonated with me. Since entering the industry, I've been working in mining pools and have heard many stories about miners. I think the biggest difference between Dogecoin and other cryptocurrencies is that it's a PoW coin, and as a merged-mined coin, its market capitalization has already ranked second among PoW coins, second only to Bitcoin. This in itself is a remarkable achievement.
Furthermore, Dogecoin demonstrates its uniqueness under the PoW consensus. Many believe that halving and a deflationary model are essential for a currency's long-term survival, but Dogecoin lacks a deflationary mechanism and yet continues to expand its ecosystem. This holds promise for miners and mining pools. As a platform, we charge a service fee per unit of computing power, and our primary goal is to see stable, long-term price growth, so that the revenue per block and per unit of computing power continues to increase. This isn't seen in many other currencies, but Dogecoin achieves this. Therefore, from the platform's perspective, this is very welcome. Our primary goal is to maximize user returns and attract more users.
This also provides mining pools with a great entry point. Even without a deflationary mechanism, Dogecoin still demonstrates unique growth potential. Some users even joked about hearing crickets chirping in the background of Mr. Song's speech. I think this resonates very closely with the lives of miners. Miners often work tirelessly year-round, in wind and rain, in an environment close to nature. I would like to take this opportunity to personally express my gratitude to all the miners who use their hard work and computing power to maintain blockchain stability and contribute to decentralization.
I'd also like to raise a question: Is mining itself a continuation of the meme spirit? From a philosophical perspective, spirit must be dependent on matter. Dogecoin's growth from a "supporting role" in merged mining to the second-largest PoW coin by market capitalization speaks volumes about its value and prospects. The flourishing Dogecoin ecosystem, and the empowerment it provides through PoW, also represents a prime example of the meme spirit and its dissemination.
Denny Xing : I'd like to add two final points. First, thank you to ElphaPex for proposing a new value proposition: viewing Dogecoin mining as an alternative crypto-money. Dogecoin mining machines, with their superior energy efficiency and higher tolerance for electricity costs, can unlock more electricity resources, expand supply-side options, and thus form a sustainable operational strategy to hedge against downside risks. This new proposition has also led to a growing number of traditional and compliance agencies becoming more open to Dogecoin mining. Secondly, mining itself carries the characteristics of "leveraged hoarding," which can be understood as a long-term call option. To use a meme to illustrate: a Dogecoin avatar in the forefront of a sandstorm. The army of miners is at the forefront of that storm, bearing the risks while also providing the underlying consensus and value foundation for the entire network. Compared to Bitcoin miners, who must cash out due to fixed electricity costs, Dogecoin miners act more like frontline defenders.
BlockBeats : Thank you all for your wonderful speeches. This concludes tonight's official Space discussion. Dogecoin has come a long way over the past decade, and its development into a community with strong computing power and vitality is truly remarkable. Tonight, we discussed not only industry and finance, but also culture and community, each of which is enriching the possibilities of the Dogecoin ecosystem. We look forward to new developments and opportunities for Dogecoin and PoW in the future.
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