Dogecoin Debuts a Core Development Fund: Details
- Dogecoin Foundation recently launched a new $5,000,000 DOGE development fund to provide incentives to active developers.
- The Foundation has decided to transfer five million DOGE, or about $360,000 at the current market price to a “segregated multi-signature wallet.”
- Marshall Hayner, one of the fund’s custodians, had been chosen for the Board of Directors of the Dogecoin Foundation.
- For every minor or significant contribution to the improvement of Dogecoin Core, the fund will distribute 500,000 DOGE to developers.
Renowned nonprofit organization behind the development of the biggest meme coin by market capitalization Dogecoin (DOGE), the Dogecoin Foundation, recently launched a new $5,000,000 DOGE development fund, which would be distributed to developers who contribute to the expansion of the DOGE ecosystem.
This announcement comes at a time when the price of the native token of the platform, DOGE, has dropped significantly following the onset of the crypto winter. The number of holders of the meme coin has also declined considerably, despite the continuous support from Elon Musk, the founder and CEO of Tesla.
Notably, the Foundation has decided to transfer five million DOGE, or about $360,000 at the current market price, to a “segregated multi-signature wallet” and promised to use the funds to encourage core developers to expand and strengthen the Dogecoin ecosystem.
“The DOGE held in this wallet will disburse rewards to developers of Dogecoin Core for work on all contributions, no matter how big or small,” the foundation said.
The wallet, which will be run by the members of the Dogecoin Foundation, has Chromatic (Core developer), Marshall Hayner (Foundation Board), Michi Lumin (Core developer), Patrick Lodder (Core developer), and Ross Nicoll (former Core developer) as custodians to ensure its security.
The organization also disclosed that Marshall Hayner had been chosen for the Board of Directors of the Dogecoin Foundation. The entity stated:
“Marshall brings executive and technical leadership experience to the Dogecoin Foundation and has been instrumental in creating this Core Development Fund.”
For every minor or significant contribution to the improvement of Dogecoin Core, the fund will distribute 500,000 DOGE to developers, but the amount of the reward will depend on each contributor’s efforts:
According to the blog post, “the height of the payout for each individual contributor will be weighed based on the process used for the Dogecoin Core tip jar, to minimize duplication of work, or based thereon if no functional Dogecoin Core tip jar exists at that time.”
It is interesting to note that every distribution will be publicly disclosed and transparently announced on all social media platforms.
The Dogecoin Foundation, which was founded in 2014, stayed inactive for years before its relaunch in 2021 with a new advisory board, which includes Ethereum co-founder Vitalik Buterin, Dogecoin founder Billy Markus, and one of Elon Musk’s favorites, Jared Birchall.
It was hinted that DOGE would move away from the proof-of-work (PoW) consensus mechanism when, in 2021, the foundation and Buterin worked together to develop a “community staking” system based on proof-of-stake (PoS). However, currently it is the second-biggest PoW network.
Michi Lumin, however, recently denied the claims, stating that the meme coin has no plans to copy Ethereum’s action.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
