Elon Musk supports Dogecoin's inflation model, saying the fixed inflation rate is a “feature, not a bug.”
This response was in response to a tweet by Billy Markus, co-founder of Dogecoin, about how to adjust Dogecoin's tokenomics.
With an infinite supply, Dogecoin mints 10,000 coins every minute, causing the inflation rate to decrease over time. Markus explained how developers can vote to change the tokenomics if they want, but stressed that it is a decision for the community and miners.
Elon Musk supports Dogecoin’s fixed inflation model, arguing that the decreasing inflation rate is a “feature.” Billy Markus, co-founder of Dogecoin, agrees, stating that this makes Dogecoin ideal for use as a currency.
Previously, billionaire Mark Cuban also praised Dogecoin as a suitable means of payment thanks to its tokenomics, arguing that people would prefer to spend Dogecoin than Bitcoin or Ethereum.
Mark Cuban believes Dogecoin is suitable for payments because users can easily own and spend it, unlike the feeling of owning a fraction of Bitcoin or Ethereum. His Dallas Mavericks team has accepted Dogecoin for tickets and merchandise since 2021.
Elon Musk, a Dogecoin supporter since 2018, has worked with Dogecoin developers to promote the currency’s payment potential. While not actively involved in the cryptocurrency, Musk likes Dogecoin because “it has dogs and memes.”
