Dogecoin (DOGE)

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Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Dogecoin

S.4

Name of the crypto-asset

DOGE

S.5

Consensus Mechanism

Proof of Work (PoW)

S.6

Incentive Mechanisms and Applicable Fees

Dogecoin operates on a Proof of Work (PoW) consensus mechanism, specifically utilizing the Scrypt hashing algorithm. A key characteristic is its merged mining capability with Litecoin, allowing miners to simultaneously mine both Dogecoin and Litecoin using the same computational effort.

Incentives: Miners secure the Dogecoin network by solving cryptographic puzzles and receive rewards for successfully adding new blocks to the blockchain.

Block Reward: Currently a fixed 10,000 DOGE per block, which is paid to the miner who finds the block. There is no hard cap on the total supply of DOGE, meaning rewards continue indefinitely.

Transaction Fees: Transaction fees on Dogecoin are generally very low (e.g., 0.01 DOGE per kilobyte) and are paid to the miners. This low fee structure encourages widespread usage.

Merged mining ensures that Dogecoin benefits from the robust security provided by Litecoin's larger hash rate without requiring a proportional increase in its own dedicated energy consumption.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~2,000,000,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the Dogecoin network is primarily driven by the electricity used by specialized mining hardware (ASICs optimized for the Scrypt algorithm) that simultaneously mine both Dogecoin and Litecoin through merged mining. This means a significant portion of the energy is already being expended for Litecoin. Methodologies for estimation typically involve:

Attribution model: Estimating the total energy consumption of Scrypt PoW mining (primarily driven by Litecoin's hash rate) and then attributing a share to Dogecoin based on factors like relative market capitalization, hash rate contribution, or block reward value. 

Hardware efficiency: Analyzing the power draw and efficiency of Scrypt ASICs.

Independent analyses (e.g., from Digiconomist or Crypto Carbon Ratings Institute for merged-mined coins) are key sources for such attributed estimates.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

~30%

S.12

Energy intensity 

~78.28 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~950,000 t CO2eq per calendar year

S.15

GHG intensity 

~37.18 kg CO2eq per transaction

S.16

Key energy sources and methodologies

The energy sources for Dogecoin's merged mining operations are globally diverse, encompassing a mix of fossil fuels (natural gas, coal) and sustainable sources (hydroelectric, solar, wind, geothermal). The specific energy mix used by individual miners varies significantly by geographic location. Methodologies for assessing energy sources typically involve:

Geographical mapping: Estimating the regional breakdown of Scrypt hashing power. 

Grid mix analysis: Correlating these locations with public datasets on electricity generation mixes and carbon intensity factors for those regions. The merged mining aspect means this data is heavily influenced by the energy sources for Litecoin mining.

S.17

Key GHG sources and methodologies

The predominant source of Greenhouse Gas (GHG) emissions for Dogecoin is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:

Energy consumption * Emission Factor: Multiplying the estimated total attributed electricity consumption of the Dogecoin network (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity mix where merged miners operate.

Attribution challenges: Given the merged mining, these methodologies often rely on complex attribution models to fairly allocate a portion of the shared PoW energy and emissions to Dogecoin. Reports from specialized crypto environmental research groups are crucial for these assessments.