AssetsFeb 02, 2023

Dogecoin (DOGE) may switch to PoS, according to rumors

If the largest of the meme coins had such changes, it would have huge consequences for the mining industry.

According to some rumors, Dogecoin could ditch its current Proof of Work (PoW) consensus mechanism in favor of Proof of Stake (PoS). Although these rumors are not confirmed anywhere, experts began to wonder what consequences such a change would bring to the DOGE mining industry.

Dogecoin and consensus mechanism change rumors

After Ethereum was the first cryptocurrency project to undergo a successful upgrade, as a result of which it abandoned PoW in favor of PoS, some observers of this industry, as well as environmental advocates, began to support the idea that other cryptocurrency projects should behave in a similar way.

Although the rumors that Dogecoin could change its current consensus mechanism have not been confirmed in any way, experts began to speculate about what would happen to DOGE miners in the event of such an eventuality.

According to the speculation of cryptocurrency market analysts, the ASIC manufacturer would have to further reduce the prices of its equipment for mining digital currencies, which would affect their financial results. Another conclusion they made was that Dogecoin would be at risk of being considered a security when switching to PoS.

Currently, DOGE is the second largest PoW cryptocurrency. This meme coin was promoted after the changes that took place in Ethereum. It is unclear whether Doge will continue to be praised or rejected by the digital currency community if the current consensus mechanism is abandoned. The cryptocurrency industry has been full of surprises lately.

The current situation on the DOGE chart

Dogecoin was one of the cryptocurrencies that suffered the mildest declines during the crypto winter. It is currently valued around $0.09127 per coin. Over the past 7 days, its rate has increased by over 9%. However, it is more than 87% away from the ATH recorded in May 2021.