Dogechain
Crypto Overview
Intended Utility
Dogechain was launched in 2022 as a Layer 2 blockchain solution built on Polygon Edge, designed to extend the utility of Dogecoin through smart contracts and DeFi capabilities. The project aims to create an ecosystem where users can bridge their Dogecoin to use in DeFi applications, NFTs, and gaming.
Business Model Analysis
The platform operates by allowing users to bridge their DOGE to wrapped DOGE (wDOGE) on Dogechain, enabling participation in DeFi protocols, NFT marketplaces, and blockchain games. The DC token serves as the native governance and gas token of the network.
Actual Utility Assessment
Current usage metrics show limited adoption, with relatively low daily active users and transaction volumes compared to other Layer 2 solutions. The majority of activity appears to be concentrated in token trading rather than genuine DeFi or smart contract usage.
Platform Development
Development activity has been minimal since launch, with few significant updates to the core protocol. The project's GitHub repositories show limited recent commits, raising concerns about ongoing development.
Token Distribution
Initial token distribution allocated 80% to the community through airdrops and farming, 15% to the treasury, and 5% to the team. However, there have been concerns about large token holders and potential market manipulation.
Founder Analysis
The project launched anonymously, which raises transparency concerns. The lack of public team information and accountability structure presents significant risks.
Revenue Model
The platform generates revenue through transaction fees paid in DC tokens. While the fee structure itself doesn't involve riba, some of the DeFi protocols built on Dogechain may involve interest-bearing products that would be considered non-compliant.
Crypto Impact
To assign a comfort level investing in Dogechain from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Dogechain.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
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You can change your vote if you change your mind.