Reward schedule and maximum number of dogecoins?

According to Dogecoin's bitcointalk-thread there will be a maximum of 100 billion dogecoins. Yet, just below that figure is stated that the reward schedule offers a reward of up to 1 million dogecoins for each of the first 100k block, which would amount to 100,000,000,000 doges already rewarded for the first 100,000 blocks. The subsequent next 500k blocks would up the total doges to just shy of 170 billion dogecoins.

It also states that there will be a constant reward of 10k doges starting with block 600,001.

This information is inconsistent and I am wondering, how the reward schedule is actually implemented: Is there a maximum of dogecoins or will the amount continue to grow infinitely as suggested by the constant reward?

Murch

Posted 2014-01-05T14:01:45.703

Reputation: 41 609

Answers

The Dogecoin reward schedule

I subsequently found the information that the Dogecoin reward schedule provides random amounts sized between 0 and a halving maximum for the first 600,000 blocks:

Block 1 — 100,000: 0-1,000,000 dogecoins
Block 100,001 — 200,000: 0-500,000 dogecoins
Block 200,001 — 300,000: 0-250,000 dogecoins
Block 300,001 — 400,000: 0-125,000 dogecoins
Block 400,001 — 500,000: 0-62,500 dogecoins
Block 500,001 — 600,000: 0-31,250 dogecoins
Block 600,001+: 10,000 dogecoins

The random reward amounts are dependent on the hash of the previous block. (H/T @JesseBusman)

How much?

At optimal random distribution, the first reward interval would provide 50 billion dogecoins. Altogether, the first 600,000 blocks would provide an estimated ~98.44 billion dogecoins, leaving another expected 156,250 blocks to be mined with the subsequent constant block reward of 10,000 doges per block.

How long?

As the block time is aimed to be 60 seconds, the reward is expected to halve every 69 days, 10 hours and forty minutes. At optimal block time, the last block with a reward would be expected after 525 days, or one year and 160 days.

Update: Flat 10k reward forever

On February 1st, 2014 the Dogecoin developers announced that Dogecoin would not be capped at 100 billion dogecoins after all, but would continue to have a flat 10k dogecoin reward for each block after Block 600,000.

Murch

Posted 2014-01-05T14:01:45.703

Reputation: 41 609

1Just as a sidenote, the random block reward was based on the hash of the previous block. – Jesse Busman – 2019-09-10T17:38:52.600

1@JesseBusman: Thanks, added. – Murch – 2019-09-15T16:06:38.830

3Very randomness! Such exciting, much profit. WOW :P – Joe Pineda – 2014-01-06T00:21:00.000

Of course, such a high spread of possible block rewards means there's a slight (albeit very real) possibility the Dogecoin economy ends up with a number different than the targeted 100 billion coins. I believe it could be as high as 25% more or 25% less!! Has anyone done the calculations, assuming the distribution of the reward amounts is truly random? And with so-far actual data?? – Joe Pineda – 2014-01-30T19:51:30.590

1Since there are so many random events, I think it should be very close. Also, the blocks after the 600,000th could just give a reward until 100 billion are reached, so only 25% more would create an issue. – Murch – 2014-01-30T20:00:56.743

-1

The math says that the coins will be fully mined-ish in 1.43 years (525 days) from the genesis block.

That's June 2015 folks

Danneh

Posted 2014-01-05T14:01:45.703

Reputation: 1

-1

I've heard the payout is random and the maximum is 1M Doge. So the average payout for the first 100,000 blocks is 0.5M Doge/block. So after the first halvening 50B Doge are in exisitance.

Guest

Posted 2014-01-05T14:01:45.703

Reputation: 1

1Kind of a short explanation and you start it out with "I've heard" make it sound like extremely suspicious info. – John T – 2014-02-05T01:57:16.447