What is Dogecoin, and how does it work?
Dogecoin started in 2013 as a joke built on an internet meme. It is a proof-of-work cryptocurrency with a fixed reward per block and no maximum supply, which sets it apart from coins with a fixed limit.
Education only, not investment, tax or legal advice. Crypto-assets are high-risk — risk disclosure.
DOGEThe short answer
Dogecoin is an open-source, peer-to-peer cryptocurrency launched on December 6, 2013 by Billy Markus and Jackson Palmer, inspired by the Doge meme. Miners secure it with Scrypt proof of work. Each block pays 10,000 new DOGE, about 5 billion a year, with no cap on total supply.
Key takeaways
- Dogecoin was created as a joke by Billy Markus and Jackson Palmer and launched on December 6, 2013, with the Shiba Inu 'Doge' meme as its mascot.
- It uses proof of work with the Scrypt algorithm, and since 2014 it can be merge-mined alongside Litecoin.
- There is no maximum supply: each block creates 10,000 DOGE, which adds about 5 billion coins a year.
- Because the yearly amount is fixed, new issuance shrinks as a percentage of the total over time, but the total keeps growing.
What is Dogecoin, and who created it?
Dogecoin is an open-source, peer-to-peer cryptocurrency that runs on its own blockchain6. Billy Markus and Jackson Palmer created it in late 2013, originally as a joke, and it launched on December 6, 20132. The official home page credits its creators as Jackson Palmer and "Shibetoshi Nakamoto"1, a nickname that plays on Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
Its mascot is the Shiba Inu, a Japanese dog breed that became a popular internet meme known as "Doge"6. The community's motto turns the ticker into a slogan: Do Only Good Everyday6. The Dogecoin Foundation publishes a manifesto and a roadmap it calls the Trailmap1. It describes itself as a not-for-profit, first set up by members of the Dogecoin team in 2014 and revived in 2021, whose job is to support development and advocacy, defend the Dogecoin trademark and provide a roadmap and governance12.
How does Dogecoin mining work?
Dogecoin uses proof of work, the same broad method as Bitcoin. Computers called miners repeatedly run a mathematical function, here one called Scrypt, trying to find a valid new block. The winner adds the block and collects the reward3. In the early days a home computer with a gaming graphics card could take part; today mining at a profit needs specialised chips called ASICs, and many miners combine their power in mining pools3.
In 2014 Dogecoin was changed to allow merged mining with other coins that use Scrypt, the most popular of which at the time was Litecoin3. In practice this means a miner can mine Dogecoin and another Scrypt coin at the same time. The main-network code targets one block every minute, and accepts merged-mined blocks (known in the code as AuxPoW) from block 371,337 onwards10.
Figure · How new DOGE enters circulation
- 01Miner runs Scryptproof-of-work guesses
- 02Valid block foundnetwork checks it
- 03Block addedtransactions confirmed
- 0410,000 DOGE paidnew coins to the miner
- 05Supply growsabout 5 billion a year
Our explainer on proof of work and proof of stake covers why mining makes rewriting history expensive, and how a blockchain works covers the basics of blocks.
Is there a limit on how many Dogecoin can exist?
No. Each new block pays miners 10,000 DOGE1, and the official site describes this as a fixed yearly issuance of 5 billion coins4. There is no maximum supply, now or for the foreseeable future1. Simple arithmetic on those two figures gives about 500,000 blocks a year.
The reward was not always fixed. In the Dogecoin Core code, blocks before 145,000 paid a random amount derived from the previous block's hash; from block 145,000 the reward was fixed and halved every 100,000 blocks; and from block 600,000 it became a constant 10,000 DOGE1110.
Block reward by block height, worked out from the Dogecoin Core reward rule Source: [11]
| Block heights | Reward per block |
|---|---|
| 0 – 99,999 | Random, up to about 1,000,000 DOGE |
| 100,000 – 144,999 | Random, up to about 500,000 DOGE |
| 145,000 – 199,999 | 250,000 DOGE |
| 200,000 – 299,999 | 125,000 DOGE |
| 300,000 – 399,999 | 62,500 DOGE |
| 400,000 – 499,999 | 31,250 DOGE |
| 500,000 – 599,999 | 15,625 DOGE |
| 600,000 onwards | 10,000 DOGE |
The project argues that its supply is not "unlimited", because issuance is strictly limited per block, per day and per year, and that a hard cap would leave miners unpaid and the network less secure5. That is the project's own reasoning. What is certain is the arithmetic: a fixed number of new coins becomes a smaller percentage of a growing total each year4.
Worked example
Why the percentage falls (illustrative totals)
If 5 billion new DOGE were added to a total of 150 billion, the supply would grow by about 3.3% that year. Added to a total of 200 billion, the same 5 billion is 2.5%. These totals are examples only, not the current supply.
Fixed yearly issuance against illustrative total supplies
| Illustrative total supply | New DOGE that year | Growth in supply |
|---|---|---|
| 150 billion | 5 billion | about 3.3% |
| 200 billion | 5 billion | 2.5% |
What is Dogecoin used for?
Dogecoin is a general-purpose payment coin rather than a platform for applications. The official site says fees to send it are very small and confirmations are relatively fast7, and the project's stated aim is to be widely used as a currency rather than hoarded4.
- Sending and receiving payments, with small fees7.
- Fundraising: the community has raised money for causes, from sports teams to clean-water projects2.
- Accepting payments: the official Dogepedia has guides for businesses that want to accept DOGE and lists merchants and charities that do9.
If you are new to how digital payments move, our guide to digital wallets sets out the basics.
What are the key moments in Dogecoin's history?
Figure · Dogecoin: early milestones
- Dec 2013Launch
- 2014Merged mining
- 2014Bobsled fund
- 2014Kenya wells
Dogecoin's early reputation came from its community. In 2014 holders raised 26.5 million DOGE to help send the Jamaican bobsled team to the Winter Olympics in Sochi, and more than 40 million DOGE to help build clean-water wells in Kenya2. Later, the Dogecoin Foundation joined the TeamSeas ocean clean-up campaign2.
What are the specific risks of Dogecoin?
- Ongoing new supply. About 5 billion new coins are created every year with no end date41, so each existing coin is a slowly shrinking share of the total.
- Driven by attention. Dogecoin's identity is a meme and a community6. Prices of assets driven by attention and social media can swing sharply.
- Mining concentration. Profitable mining now needs specialised hardware, and miners combine their power in pools3. If a few large pools did most of the work, fewer parties would be securing the network.
- Platform risk. The SEC warns that crypto platforms may lack the protections of regulated markets8.
Risk warning
A joke coin can still cost real money
The SEC describes crypto asset securities as potentially exceptionally volatile and speculative8. Do not risk money you cannot afford to lose, and read our risk disclosure first.
What mistakes do beginners make with Dogecoin?
Common beginner mistakes
Assuming it has a fixed supply
Dogecoin has no supply cap1. Comparing it with fixed-supply coins misses how its supply grows each year.
Buying a copycat token
Many tokens use dog names and Shiba Inu images. Check that you are dealing with Dogecoin on its own blockchain, not a look-alike token on another network.
Judging it by social media buzz
Popularity online says nothing about security or long-term use. Read the official Dogepedia instead of trusting posts.
Leaving coins on a platform you do not understand
If a platform holds your DOGE, you depend on it. Learn the difference between custodial and self-custody wallets first.
Our guide to crypto wallets and keys explains who really controls coins in each kind of wallet.
Frequently asked questions
Who is Shibetoshi Nakamoto?
How many new Dogecoin are created each year?
Why doesn't Dogecoin burn coins or set a cap?
Is Dogecoin related to Litecoin?
They are separate coins, but both use the Scrypt algorithm, and since 2014 Dogecoin can be merge-mined alongside Litecoin3.
The bottom line
Dogecoin is a proof-of-work payment coin that began as a joke and grew through its community. It pays a fixed 10,000 DOGE per block, about 5 billion coins a year, with no supply cap, so new issuance shrinks as a percentage while the total keeps rising. Understand that design, avoid look-alike tokens, and treat its price as highly volatile.
Sources
- Dogecoin (official website) — dogecoin.com Primary source
- History of Dogecoin — Dogepedia, dogecoin.com Primary source
- Mining Dogecoin — Dogepedia, dogecoin.com Primary source
- Dogecoin inflation (FAQ) — Dogepedia, dogecoin.com Primary source
- Putting a cap on Dogecoin (FAQ) — Dogepedia, dogecoin.com Primary source
- What is Dogecoin? — Dogepedia, dogecoin.com Primary source
- How does Dogecoin work? — Dogepedia, dogecoin.com Primary source
- Exercise Caution with Crypto Asset Securities: Investor Alert — Investor.gov, U.S. Securities and Exchange Commission, 2023 Primary source
- Dogepedia — dogecoin.com Primary source
- Dogecoin Core source code: src/chainparams.cpp (main network parameters) — Dogecoin Core project (GitHub dogecoin/dogecoin), 2026 Primary source
- Dogecoin Core source code: src/dogecoin.cpp (GetDogecoinBlockSubsidy) — Dogecoin Core project (GitHub dogecoin/dogecoin), 2026 Primary source
- What is the Dogecoin Foundation? — Dogepedia, dogecoin.com, 2026 Primary source
How we checked this page: every figure above links to the numbered source it came from. Spotted an error? Tell the desk — see our editorial policy.
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