According to CoinGecko data, the Dogechain token, a smart contract system that expands the functions of the cryptocurrency meme Dogecoin (DOGE), has increased in value by 350% in the last three days.
The digital asset, denoted by the symbol “DC,” fell from US$ 0,0004 on Friday (21) to US$ 0,0018 on Sunday (23). At the time of writing, the cryptocurrency was trading at US$ 0,0014 on Tuesday AM (24).
Prior to this incident, DC went through some tough moments. It fell 90% in August and September, falling from around US$ 0,004 to US$ 0,0004.
Dogechain was launched in the middle of August and currently has a market capitalization of US$ 46 million. Data from blockchain trackers show that $5.8 million is locked up in Dogechain products, a small sum in comparison to the size of the cryptocurrency market.
The recent positive momentum stems from two improvement proposals that are now being voted on by community members (in practice, those who own the DC token). One is the “token burning”, which will determine if the overall token offer should be reduced by 80% proportionally in all locations.
In addition, the reduction of the vesting period (the minimum amount of time that the first investors are required to keep their investments) is from 48 to six months, according to the project’s official website.
Up to this point, 99% of votes have been cast in support of both changes.
What is Dogechain?
Dogechain is Dogecoin’s own blockchain, which allows users to connect the cryptocurrency and utilize it for Defi protocols, NFTs, and games.
It is important to point out, however, that Dogechain is not an official Dogecoin project; rather, Dogechain was founded by a group of Dogecoin enthusiasts.
Moreover, despite its marketing claims, Dogechain is not a “Layer 2” network, which means that the blockchain was not developed on top of a layer 1 like Ethereum. I
Dogechain, like Ethereum, is not a real layer 2 that is constructed on top of layer 1. Instead, it makes use of Polygon Edge, a one-of-a-kind blockchain application from the top layer 2. This means that it is EVM-compatible and can run Ethereum-based dAPPs.
The unofficial blockchain is not seen with good eyes by part of the Dogecoin community.
On August 31st, it was reported that Dogecoin’s co-founder Billy Markus refused a millionaire offer to promote the blockchain, due to the incongruences in promotions and attempts to tie Dogechain as close to Dogecoin as possible.
