Dogechain

Whitepaper
V1.1
June 2022
Table of Contents
Abstract 3
Introduction 3
1.1 Dogecoin - The Original Meme Coin 3
1.2 The Unfortunate Shortcomings of Dogecoin 4
Introducing Dogechain 4
2.1 Solutions brought by Dogechain 5
2.2 Characteristics of Dogechain 5
2.3 Main Features of Dogechain 6
Background 7
3.1 Cryptographic Hash Functions 7
3.2 Digital Signatures 8
3.3.1 Secp256k1 Curve 8
3.3.2 ECDSA Signature Algorithm 8
3.3 Ethereum Virtual Machine (EVM) 9
3.4 Consensus Protocols 9
3.4.1 Proof-of-Work (PoW) - Nakamoto Consensus 9
3.4.2 Istanbul Byzantine Fault Tolerant (IBFT) 9
3.4.3 IBFT Proof of Authority (PoA) 10
3.4.4 IBFT Proof-of-Stake (PoS) 10
3.4.5 RAFT 11
3.5. Comparison and Selection 11
Dogechain (DC) Architecture 11
4.1 Dogechain Layering Architecture 13
4.2 Dogechain Cross-Chain Protocol 14
4.3 Dogechain Design 15
4.4 Native Currency of Dogechain: the $DC token 15
4.5 Dogechain Configurations 16
VE Model for DogeChain 16
5.1 Voting Power 16
5.2 How to Use $veDC 17
Smart Contracts of Dogechain 17
6.1 Governance Contract 17
6.2 Validator Set Contract 18
6.3 Vault Contract 18
6.4 Staking Contract 18
6.5 Slashing Contract 18
6.6 Bridge Contract 19
 Dogechain Staking 19
Potential Applications on top of Dogechain 19
8.1 NFTs 22
8.2 DeFi 22
8.3 GameFi 22
Implementation details 22
References 22
22

Abstract
This whitepaper proposes a full overview of the standalone Dogechain blockchain, its key
concepts, and its core principles. The following text outlines several major pain points common
to the original Dogecoin cryptocurrency and how Dogechain can solve these lingering issues.
The text also details how Dogechain complements the existing Dogecoin ecosystem via its
incorporation of smart contracts. In addition, this whitepaper examines the technicalities of
bridging the Dogecoin blockchain with Dogechain and its capacity for interoperability. It also
introduces the $wDOGE and $DC cryptocurrencies and thoroughly reviews their use cases
within the Dogechain ecosystem. Finally, this whitepaper delves into the project’s tokenomics
and surveys the token’s distribution, vesting periods, and release schedule.

1. Introduction

1.1 Dogecoin - The Original Meme Coin

Dogecoin was the first meme coin released to the public in 2014. The idea behind it was to veer
away from the overtly- serious cryptocurrency investment narrative to provide a whimsical coin
that mainstream users could identify with. Not surprisingly, the token achieved immediate and
extensive success. The Dogecoin community began to grow exponentially as well, especially
after crucial influencers such as Elon Musk and Snoop Dogg endorsed the native
cryptocurrency. Today, Dogecoin is considered one of the most popular cryptocurrencies in
existence along with Bitcoin and Ethereum. As the first successful meme crypto, Dogecoin has
inspired a multitude of copycats, including Shiba Inu or Dogelon Mars.

From a technical standpoint, Dogecoin is a fork of Litecoin, the “silver to Bitcoin’s gold”.
Consequently, Dogecoin is mineable, enabling more than 10,000 new coins to be released into
the market every minute. Moreover, the token supply is not capped as it is with Bitcoin.

The $DOGE cryptocurrency has a single use case - to be accepted as a means of payment for
exchanging goods and services online. Given its growing popularity, it seems to have achieved
this goal quite admirably. People simply love using Dogecoin and participating in the meme
culture that is associated with it. Conclusively, $DOGE has gained mainstream recognition and
adoption.

Having said that, Dogecoin’s age is starting to catch up with it. Its fundamentals have remained
stagnant relative to the multitude of tokens that have evolved with the medium.

1.2 The Unfortunate Shortcomings of Dogecoin

While $DOGE continues to excel at payments, this feature remains its sole use case. At a time
when blockchain technology promises extensive utility through smart contracts, Dogecoin
remains a one-trick pony. As a result, Dogecoin users cannot readily use their tokens in gaming,
DeFi, or NFTs. This failure is especially egregious to DeFi fans who witness Doge-like tokens
gaining traction with investors (mostly due to their passive yield opportunities). Without smart
contract functionality, Dogecoin is left out of this narrative.

Moreover, as a fork of Litecoin, Dogecoin uses the proof-of-work (PoW) Scrypt mining algorithm
for validating transactions and creating new coins. While Scrypt is easier to mine than Bitcoin’s
SHA-256, the PoW architecture remains difficult to scale for mass usage. In its current form,
micro-transactions could easily create the kind of network congestion that would slow it down to
a crawl.

Additionally, crypto mining is considered a notoriously wasteful process for validating blockchain
transactions. A study by Digiconomist revealed that Dogecoin consumes as much as 6.54 TWh,
roughly the energy needs of a small country. Unfortunately, $DOGE’s increasing popularity
promises to increase its carbon footprint even further.

Finally, it’s worth noting that Dogecoin’s PoW protocol presents insurmountable challenges to
implementing smart contracts. A PoW consensus mechanism simply can’t scale to meet mass
demand for millions of simultaneous transactions, even if they merely fuel dApps. Even
Ethereum is migrating to a more scalable PoS mechanism to alleviate this issue. Consequently,
the most viable solution is to implement a complementary blockchain with a PoS token that
prioritizes fast transactions and enables smart contract functionality.

2. Introducing Dogechain
Dogechain is an EVM-compatible blockchain that aims to complement the original Dogecoin
cryptocurrency. As a proof-of-stake blockchain, Dogechain seeks to bring scalability, security,
robustness, and utility to Dogecoin. In short, Dogechain doesn’t compete with Dogecoin.
Instead, it aims to harmonize with the original meme crypto and enhance it with smart contract
capability.

It's important to note that the Dogechain project is a community-first blockchain that aims to
empower Dogecoin holders and enthusiasts. Dogechain will ultimately provide Dogecoin users
with access to blockchain games, NFTs, and the ever-growing DeFi ecosystem, one in which
they can showcase their favorite meme coin for a wide range of applications.

2.1 Solutions brought by Dogechain

The main goal of Dogechain is to increase the use cases of Dogecoin by providing it with
much-needed utility. Dogecoin users can achieve this goal by merely wrapping their $DOGE
into Dogechain smart contracts and receiving $wDOGE PoS tokens in return. $wDOGE tokens
live on the Dogechain blockchain and will allow users to access an ecosystem of DeFi products,
NFTs and GameFi, all indirectly powered by their original $DOGE tokens. Examples of potential
use cases include:
3
● Participating in the NFT market through minting and exchanging NFTs by paying for gas
with $DOGE.
● Partaking in lucrative GameFi opportunities and engaging with the growing blockchain
gaming community.
● Joining decentralized exchanges to swap tokens and speculate on their value.
● Accessing advanced financial instruments such as staking, lending, borrowing, and
liquidity mining.
● Taking part in the upcoming metaverse revolution through Dogechain-powered NFTs.
● Participating in DAOs and funding entire communities.
● And many more…

In sum, Dogechain promises to transform the single-usage Dogecoin crypto into a DeFi
powerhouse. With any luck, Dogecoin will be able to readily compete with many of the top smart
contract platforms in the current blockchain environment.

2.2 Characteristics of Dogechain

Dogechain relies on the Polygon Edge framework to build its standalone, EVM-compatible
blockchain. EVM stands for Ethereum Virtual Machine, which means that this smart
contract-capable platform will be compatible with dApps deployed on Ethereum.

EVM is at the core of the Ethereum blockchain and plays an instrumental role in creating
decentralized applications. In particular, it allows developers to build and deploy solutions and
protocols much more quickly (as opposed to building them from scratch). Indeed,
EVM-compatible protocols incorporate a robust and proven architecture and are thus a
game-changer for DeFi product developers. And in addition to existing protocols, Dogechain will
propose its own smart contracts, thus building upon the extensive DeFi ecosystem.

Bitcoin and other payment-focused / store-of-value blockchains haven’t been able to invoke the
same demand as smart contract-capable platforms. In contrast, Dogechain’s ability to improve
Web3 ecosystem productivity promises to increase blockspace demand. This event will equally
play a part in increasing demand for the native cryptocurrency of Dogechain, the $DC token.
Given Dogechain’s capacity for high throughput and decentralization, token users will not need
to suffer the same user concerns associated with many PoW tokens (including low transactions
per second, public chain congestion, centralized mining, and high transaction fees). Moreover,
Dogechain will conserve a high degree of decentralization due to its PoS architecture.

Dogechain relies on a predefined number of validators to facilitate its Proof-of-Stake (PoS)

consensus mechanism, a setup that leads to shorter block times and lower fees. In PoS,
validator candidates with the highest number of tokens staked are allowed to become validators
and produce blocks. The token also employs slashing scenarios, hence leading to security,
decentralization, reliability, transparency, stability, and block finality.

2.3 Main Features of Dogechain

Dogechain relies on the following key principles:

● IBFT Proof-of-Stake (PoS) consensus: Community users can participate in the

network which ensures a permissionless and decentralized blockchain.
● EVM-compatible: Existing Ethereum smart contracts can easily be migrated to
Dogechain without requiring any further modification.
● Decentralized Governance: Community members (token holders) can make proposals,
delegate, vote on the blockchain parameters & events, and influence governance
decisions.
● Cross-chain compatibility: Dogecoin can be easily utilized on the Dogechain network
by wrapping the Dogecoin via the Dogechain bridge, and sent back to the Dogecoin
network as needed.
 Fig1. High-Level Features of Dogechain

3. Background

3.1 Cryptographic Hash Functions

An essential tool in blockchain technology is the cryptographic function that ensures transaction
integrity and immutability. The hash function is the mathematical algorithm that produces a fixed
size numerical output (called fingerprint or digest) consisting of input data. More specifically, a
hash function can be denoted as:

H:{0,1}*→ {0,1}ᵏ

A hash function takes on the input of any size and produces a fixed k length output. In addition,
it must satisfy the following properties:
● It is easy to compute H regardless of input data size.
● Given any h, it is computationally infeasible to find an input x such that H(x) = h.
● Given any x, it is also computationally infeasible to find y such that H(y) = H(x) and x≠ y.
● It is computationally infeasible to find any (x, y) such that H(x) = H(y) and x≠ y.

SHA-256 and Keccak-256 are widely used in several blockchains, and they produce a hash
(output) of 256 bits in size.
3.2 Digital Signatures

3.3.1 Secp256k1 Curve

Note that all elliptic curves are equations defined as y2 = x3 + ax + b. The code Secp256k1 is an
elliptic curve used by several blockchains to implement public and private key pairs. For
instance, we can define Secp256k1 as a = 0 and b = 7 (i.e., secp256k1 lives on the equation y2
= x3 + 7).

Before a user generates a public and private key pair (pk, sk), he/she must first generate a
sufficiently large random number (which is going to be sk) and use it to multiply with the private
key by the generator point G as sk.G (which is going to be the pk).

We use this number to define a point on the secp256k1 curve. Due to the underlying discrete
log problem (DLP), no one can derive the private key from the given public key and the
generator point (as long as the key size is sufficiently large).

Note that for each value of x, the y component is squared in this equation leading to having two
symmetric points across the x-axis. Hence, there are two values of y called odd and even
numbers. Therefore, public keys can be identified by the x-coordinate and the parity of the
y-coordinate. In the blockchain space, this feature is crucial, as it saves significant data storage.

3.3.2 ECDSA Signature Algorithm

Elliptic Curve Digital Signature Algorithm (ECDSA) is a cryptographic algorithm for creating
digital signatures. More concretely,

Setup
● Public Parameters: Let 𝐹𝑞 be a finite field, two parameters 𝑎 and 𝑏 define an elliptic
255
curve 𝐶 over 𝐹𝑞, a seed which validates 𝐶, a prime integer 𝑛 > 2 , and a point
𝐺∈ 𝐶 of order 𝑛 where 𝑞 is either prime or a power of 2.
● Private Key: An integer 𝑑 in [1, 𝑛 − 1].
● Public Key: 𝑄 = 𝑑𝐺.

Signature generation for a given message 𝑀:

● Generate 𝑘∈ [1, 𝑛 − 1]
● Compute
(𝑥1, 𝑦1) = 𝑘𝐺
𝑟 = 𝑥1 𝑚𝑜𝑑 𝑛
𝐻(𝑀) + 𝑑𝑟
𝑠 = 𝑘
𝑚𝑜𝑑 𝑛
● If 𝑟 = 0 or 𝑠 = 0, try again. The signature is (𝑟, 𝑠).
● Signature: (𝑀, 𝑟 , 𝑠 ).
 Verification:
● Given (𝑀, 𝑟 ', 𝑠' ).
● Verify if 𝑟' and 𝑠' are in [1, 𝑛 − 1] and that 𝑟' = 𝑥1 𝑚𝑜𝑑 𝑛 for
𝐻(𝑀) 𝑟'
(𝑥1, 𝑦1) = 𝑢1𝐺 + 𝑢2𝑄, 𝑢1 = 𝑠'
𝑚𝑜𝑑 𝑛, and 𝑢2 = 𝑠'
𝑚𝑜𝑑 𝑛.s' ).

3.3 Ethereum Virtual Machine (EVM)

A virtual machine is a layer of abstraction between the executable code and the executing
machine. This layer is necessary to improve the portability of software and to ensure that
applications are separated from each other and from their hosts.

The Ethereum Virtual Machine (EVM) is a software platform that developers can use to build
decentralized applications (dApps) on Ethereum. All Ethereum accounts and smart contracts
live in this virtual machine.

The Ethereum virtual machine and EVM codes are designed using memory, bytes, along with
blockchain concepts such as Proof-of-Work (PoW) or Proof-of-Stake (PoS), Merkle tree, and
hash functions. The purpose of the EVM is to determine what the total Ethereum state will be for
each block in the blockchain.

3.4 Consensus Protocols

3.4.1 Proof-of-Work (PoW) - Nakamoto Consensus

Proof-of-Work (PoW) is a decentralized consensus protocol that can be handled securely in a
peer-to-peer network without requiring any trusted third party. It solves the difficulty of Byzantine
general problem in an open network where miners can generate arbitrary identities (also called
a Sybil attack) to compete for the next generated blocks by solving a random hash puzzle.

In order to avoid a Sybil attack, PoW is used to force the miners to have and run predefined
computational resources. Additionally, PoW protects the security of the blockchain from the
longest chain attacks. Unfortunately, PoW requires a large amount of energy which keeps
increasing as more miners join the network.

3.4.2 Istanbul Byzantine Fault Tolerant (IBFT)

IBFT is another Byzantine fault-tolerant protocol based on Practical Byzantine Fault Tolerance
(PBFT). On a high level, Byzantine consensus is achieved deterministically as follows:

4. A leader or bidder/proposer is selected.

5. Each proposed block goes through several stages of communication between the nodes
before being added and confirmed on the blockchain.

There are four types of messages which are exchanged between the nodes:
● Pre-Prepare, Ready, Commit: Used through ordinary consensus algorithms operations.
 ● Round robin: Used to select a new block producer when the current producer is
suspected of failing or when the block has not been created within a specific time frame.

Additionally, there are two approaches in the Polygon Edge framework for choosing block
producers:

● Round-robin: This is a block producer selection strategy where a different bidder is

chosen for every block producing phase.
● Attached bidder: A new bidder is only selected whenever a malicious behavior has
been detected by the current bidder.

In these two approaches, every validator knows in advance which one of them is going to be the
next block producer. This is because the decision is made through deterministic calculations
based on node IDs. Similar to PBFT, IBFT also guarantees that there will be only one single
bidder in each round.

Moreover, the bidder is required to get responses from the other nodes in order to continue
executing its further tasks. This means that in the case of a network partition with more than n
nodes (at least more than 3n+1 nodes), the protocol does not make any decisions not to break
the consensus until the partition is fixed and their communication is timely synced. This also
allows immediate finality where no forks are ever allowed to occur.

3.4.3 IBFT Proof of Authority (PoA)

In PoA, validators are responsible for creating blocks and adding them sequentially to the
blockchain. All validators create a dynamic set of validators where validators can be added or
removed from the cluster using a decentralized voting mechanism.

This means that validators can be included or excluded from a validator group if the majority
(51%) of validator nodes voted to add/remove a particular validator from the set. Thus,
malicious validators can be detected and removed from the network at any point in time, and
new trusted validators can be added to the network.

All validators propose the next block in turn (by means of the round-robin leader selection). For
a block to be validated/added to the blockchain, the overwhelming majority of the validators (i.e.,
more than 2/3) must approve that block. In addition to the validators, there are also
non-validators who do not participate in block generation directly but take part in the block
validation process. IBFT PoA is the default consensus mechanism of the Polygon Edge
framework

3.4.4 IBFT Proof-of-Stake (PoS)

The Polygon Edge Proof-of-Stake (PoS) implementation is intended to be an alternative to the
existing IBFT PoA implementation by giving node operators the ability to easily select between
the two when starting the chain. Epochs are considered to be specific timeframes (in blocks)
during which a given set of validators can generate blocks.
The epoch length can be changed, meaning that the node operators can set the length of the
epoch during instance creation. At the end of each epoch, an epoch block is created, and after
this event, a new epoch begins. Validator sets are updated at the end of every epoch period.
Nodes request a set of validators from the staking smart contract during the creation of an
epoch block and store the resulting data in local storage.

This query and saving the cycle are recurring at the end of every epoch period. Fundamentally,
this allows the staking smart contract to have full control over the addresses in the validator
group, leaving only one task to the nodes. Each contract query is executed only once per period
to obtain the latest information about the validator set. This removes the responsibility of dealing
with validator sets from individual nodes.

3.4.5 RAFT
Raft is a distributed consensus mechanism that relies on Paxos. The Raft protocol works with a
node failure model where each error (e.g., missing messages, network partitions, or
hardware-only failure) is considered a node failure.

Hence, it should run n ≥ 2f+1 where f is the maximum number of nodes that can fail and n is the
total number of nodes. The Raft protocol first selects a leader among a set of nodes and then
makes the leader fully responsible for receiving transaction requests and handling the copying
of logs (i.e., blocks) on other nodes.

Each node can be either a candidate, a follower, or a leader. The leader selection procedure is
deterministic, so the protocol cannot run until the leader is selected by more than half of the
nodes.

3.5. Comparison and Selection

IBFT protects the blockchain against various malicious attacks, while Raft only protects against
node failures. If we assume that all nodes will never be corrupted, then Raft can be used without
having any concern.

However, if there is an assumption of only having partial trust in the validators, then it would be
better to utilize IBFT. Since Dogechain is decentralized and permissionless, it is going to
run IBFT as its underlying consensus protocol.

4. Dogechain (DC) Architecture

Dogechain uses the Polygon Edge framework to build a standalone blockchain. Consequently,
it doesn’t use Polygon’s “security as a service” features but rather relies on its own set of
validators. It’s worth noting that Dogechain disables two Polygon Edge features - its
checkpointing mechanism and its mainchain contracts.
With this framework, our community of developers can build a blockchain network that better
suits their needs and demands. They can achieve this because Polygon Edge employs a
modular and extensible framework for creating EVM-compatible blockchain networks,
sidechains, and global scaling solutions. After all, Polygon Edge is primarily used to launch new
blockchain networks that are fully compatible with Ethereum smart contracts and transactions.

Finally, Polygon Edge uses the IBFT consensus mechanism since it provides for PoA and PoS.
Likewise, the Dogechain EVM blockchain invokes IBFT PoS with built-in system contracts. With
the help of Polygon Edge, Dogechain can employ the following features:

● Reuse existing Ethereum smart contract technology and its API.

○ Users can interact with standard wallets via JSON-RPC.
○ Developers enjoy Solidity/Vyper programming and full EVM support.
○ Access to popular Ethereum tools, development tools, and libraries.
○ Optimized UX when performing cross-network transactions.
● Communication between networks.
○ Completely trustless and decentralized embedded Ethereum Bridge solution.
○ Asset transfers from any EVM compatible network, particularly Polygon and
Ethereum mainnets.
○ Transferring of ERC20 tokens, NFTs, or local tokens in the shell.
○ The ability to customize bridge functionality with existing plugins.
● Special Functions.
○ Building network usability via the development of plugins
○ The capacity to replace core functionalities with consensus plugins.
○ Going beyond Ethereum smart contracts by incorporating Runtime

Thanks to the underlying Polygon Edge architecture, Dogechain can achieve full compatibility
with Ethereum smart contract technology. It can also use IBFT PoS to ensure high network
decentralization, security, and scalability.
4.1 Dogechain Layering Architecture

Fig 2. Dogechain Layered Architecture

● Libp2p: This module always begins at the underlying network layer. Libp2p is modular,
extensible, and fast. In particular, it provides an excellent foundation for more advanced
features.
● Synchronization & Consensus: The separation of synchronization and consensus
protocols enable modularity and the implementation of customizable synchronization and
consensus mechanisms (depending on how the client operates). Polygon Edge also
offers pluggable consensus algorithms out-of-the-box.
● Blockchain: The Blockchain layer serves as the core layer for managing tasks within
the Polygon Edge system.
● State: The State layer provides the logic for transitioning between states. It deals with
how the state changes when a new block is added.
● JSON RPC: dApp developers use this layer as an API layer in order to interact with the
blockchain.
 ● TxPool: The TxPool layer is a transaction pool and is tightly coupled to other modules in
the system (as transactions can be added from multiple entry points).
● GRPC: The GRPC layer is crucial for enabling interaction with the operator. This layer
ensures that node operators can interact with the clients easily, providing a usable and
efficient UX.

4.2 Dogechain Cross-Chain Protocol

This Dogechain Cross-Chain Protocol is essential to linking the original Dogecoin blockchain to
the Dogechain. This protocol requires a ratio of 1:1 $DOGE coin to enter or exit the Dogechain.
When users peg their Dogecoin to the Dogechain, the Dogechain protocol mints a wrapped
$DOGE token ($wDOGE).

Conversely, when a user destroys a $wDOGE token, he can withdraw a Dogecoin from the
Dogechain chain using a ratio of 1:1. In this context, a cross-chain bridge protocol module will
be utilized to achieve cross-chain transactions.

The primary features of the cross-chain protocol are:

1. Decentralized and secure cross-chain support of Dogecoin to Dogechain (via Dogecoin

client).
2. A trustless key generation for threshold signature schemes. Generated private shares of
the signing key will be used to calculate final signed transactions.
3. The private key shares will also be managed by the community and third-party partners
to eliminate any risk of a single-point-of-failure (i.e., centralization).
4. The protocol governance mechanism supports voting capabilities for organizations that
run on the cross-chain protocol.
 Fig 3. Dogechain Cross-Chain Protocol

4.3 Dogechain Design

As shown above, the Dogechain Chain and the Dogecoin chain have a symbiotic relationship. In
particular,

● Users can lock their Dogecoin on the cross-chain protocol to receive $wDOGE on the
Dogechain blockchain.
● Users can use $wDOGE to deploy and interact with smart contracts, pay transaction
fees, and participate in the governance of Dogechain.
● Users can destroy $wDOGE and reclaim their native Dogecoin.

4.4 Native Currency of Dogechain: the $DC token

In addition to $wDOGE, Dogechain introduces a native cryptocurrency - the Dogechain token
($DC). This community-focused token serves as a primary governance token for the Dogechain
blockchain and comes with various use cases. It's worth noting that the entirety of the $DC
tokens supply will be pre-mined upon the release of the mainnet. The protocol will
simultaneously mint a small amount of $wDOGE (1000 tokens) to serve as fuel for signing the
initial bridging gas fees.
Users will have two distinct options to pay for transaction fees on Dogechain - $wDOGE and
$DC. During the initialization phase of the Dogechain, it’s expected that users will commonly
use $wDOGE for this purpose. As the blockchain stabilizes, $DC will become the “go-to token”
for fueling transactions, smart contracts, and dApps.

4.5 Dogechain Configurations

● An IBFT PoS with built-in systems contracts will be used as a core consensus algorithm
by Dogechain.
● The average block time is expected to be 2 seconds.
● Initially, 21 nodes will be running to comply with BFT (Byzantine Fault Tolerance).
● Block size will be dynamic and decided by the Validator set. The initial block gas limit is
30,000,000.
● The expected number of validator nodes in the chain will be 21 at a minimum.
● Any account staking more than 10,000,000 $DC tokens and passing the community
authority and authentication, will be allowed to join the Validator Set.
● Dogechain has pre-deployed contracts for staking. This allows for the staking of $DC
tokens, providing rewards to holders.
● If the block is not produced or accepted within the expected time, the next validator
would take over the proposer duty.
● There is no newly minted block reward for block production.
● All transaction fees will be valued in either $wDOGE or $DC.

5. VE Model for DogeChain

$veDC is a vesting and yield system based on the Curve’s veCRV mechanism. By using this
model, users may lock up their $DC for up to 4 years to get up to four times the amount of
$veDC as a reward. (e.g. 100 $DC locked for 4 years returns 400 $veDC). $veDC is not a
transferable token nor does it trade on liquid markets. It is more akin to an account-based point
system that signifies the vesting duration of the wallet's locked $veDC tokens within the
protocol.

5.1 Voting Power

Each $veDC will have 1 vote in governance proposals. Staking 1 $DC tokens for the maximum
time, 4 years, would generate 4 $veDC. Users can trade in their $veDC tokens for $DC tokens,
once the vesting period is over. In the meantime, the user can also increase their $veDC
balance by locking up $DC tokens, extending the lock end date, or both.

Worth noting is that $veDC is non-transferable and each account can only have a single lock
duration. This means that a single address cannot lock $DC tokens for different time lengths.
For example, a user will be unable to lock one set of $DC for 2 years and then another set of
$DC tokens for 3 years. All $DC per account must have a uniform lock time.
5.2 How to Use $veDC
$veDC tokens cannot be sold or transferred. Instead, they have other use cases, including:

● Earn extra airdrop of $DC tokens;

● Receive random prizes/lottery rewards;
● Governance– vote on how the protocol gives out developer grants, etc.;
● Serve as a network validator: a certain number of veDC tokens will be required of all
validators.

6. Smart Contracts of Dogechain

The management of the validator along with their selection, reward distribution, and staking are
all performed by the smart contracts of the protocol. These contracts are deployed in the
genesis block. In Dogechain, there are six different types of smart contracts.

● Governance Contract - manages validator proposals and votes.

● Validator Set Contract - ranks validators and decides which are to be elected or
removed.
● Vault Contract - receives all the withdrawal fees from the chain bridge.
● Staking Contract - manages staking operations and the distribution of block rewards.
● Slashing Contract - manages disciplinary actions against validators who do not follow
the predetermined rules of the chain.
● Bridging Contract - manages token exchange between the Dogecoin blockchain and
the Dogechain.

6.1 Governance Contract

Blockchain networks are autonomous platforms that evolve on their own and provide
transparency through peer-to-peer democratic community interaction. On-chain management is
an approach for recommending and making changes to blockchains. In this type of governance,
change initiation rules are commonly hard-coded into the blockchain protocol.

Community-selected validators suggest possible ideas through code updates and written
suggestions. All chosen validators and regular users vote to accept/reject the proposed change.
Under the governance contract, community members democratically vote on proposals that will
advance the development of the blockchain network. To be able to recommend a proposal, the
user must have a sufficient number of $DC token shares.

On the other hand, people with a certain amount of $DC tokens can vote on proposals. There
will also be an option to report management commitments to report misuse of contracts.
The following sample options are subject to change following community feedback:

● Minimum staking amount for being a validator

● Minimum staking amount for general user
● Minimum staking amount for giving a proposal
● Etc…

6.2 Validator Set Contract

This contract validates and stores the nodes that meet the requirements of becoming a
validator. Furthermore, the contract lists the main validators and their addresses, the last
created and approved block, and classifies the blocks produced by specific validators.

6.3 Vault Contract

All withdrawal fees from the chain bridge are sent to the Vault Contract.

6.4 Staking Contract

This contract performs staking, reward calculation, and distribution of rewards to both users and
validators. This contract also periodically updates the rewards received by the validators and
shareholders.

The IBFT PoS consensus mechanism ensures decentralization and community participation.
$DOGE holders, including validators, can stake their tokens “pegged” to a $wDOGE share.

6.5 Slashing Contract

Dogechain adopts a slashing methodology similar to the one used by the Binance Smart Chain.
In addition to enhancing the security of the Dogechain chain, slashing is used to safeguard its
on-chain governance mechanisms from malicious or dishonest behavior via disciplinary actions.

Dogechain chain slash evidence can be submitted by anyone. It’s worth noting that each
transaction submission demands a slashing proof and is subject to fees. That said, it also
produces a higher reward if it is successful.

Two types of slashing behaviors are considered below:

● Double-Signing: Let us assume that two different block headers have the same height
and the same parent block hash. If these two block headers are sealed by the same
validator and different signatures are created, then this validator will be punished and
jailed permanently.
● Unavailable: If a validator misses 48 blocks per 24 hours, it will be unable to receive
rewards from the block fees. If a validator misses more than 96 blocks for 24 hours, the
validator will be punished for 10,000 $DC tokens and will be jailed for 3 days. During jail
time, it will still be able to produce or validate blocks.
6.6 Bridge Contract
Stakeholders can call upon the Bridge contract to withdraw their native $DOGE and destroy the
native token of the EVM chain. The protocol will then transfer the redeemed token to the
designated address of the original Dogecoin chain. The minimum reclaim value of the native
token is 100 $DOGE.

When the transaction is synchronized, multiple operators (of the bridging signers) will sign and
confirm the transaction and call upon the bridge contract to write data. After more than half of
the operators confirm (by means of a digitally signing procedure), the native token will be added
to the reclaim address which is specified by the user.

7. Dogechain Staking
The Dogechain project will enable users to access three different token staking models in order
to earn yields:

● Staking $wDOGE tokens on the Dogechain blockchain will allow stakeholders to secure
the native blockchain and receive $DC rewards.
● Staking $DC tokens on the chain will provide additional $DC rewards.
● Staking $DC tokens into the Dogechain Ve model will allow users to receive $veDC
tokens. They can select a vesting time between half a year and 4 years, with longer
vesting periods granting higher $DC rewards and more $veDC in return.

The process of staking goes as follows:

1. Users wrap $DOGE onto the Dogechain to receive $wDOGE.

2. During the airdrop window, users receive a 1-time airdrop for this action in $DC tokens in
an amount equal to their $wDOGE.
3. Users can stake $wDOGE on Dogechain and receive $DC rewards.
4. Users can stake the $DC they received as rewards on the Ve model and receive
additional $veDC rewards.
5. Users can stake $DC on Dogechain and lock up for a period of time to receive $DC
rewards.
 8 . Potential Applications on top of Dogechain

8.1 NFTs
Dogechain will provide its users with the capability to publish their own NFTs following the
ERC721 protocol. Since this proven NFT standard is widely accepted by marketplaces and
metaverses, Dogechain NFT owners will be able to integrate their NFTs into the existing NFT
landscape.

8.2 DeFi
As an EVM-compatible blockchain, DeFi protocols such as Uniswap and SushiSwap can be
seamlessly integrated with Dogechain. $wDOGE and $DC are DeFi-capable cryptocurrencies
that can be locked in various liquidity pools and provide rewards to their holders. Moreover, they
will be able to use them as collateral on decentralized lending platforms, exponentially
increasing the utility of their original Dogecoin.

In addition, several Layer 2 solutions found within the Polygon Edge architecture (including both
ZK Rollups and Optimistic Rollups) will enable Dogechain to make improvements on their
existing transaction speeds in DeFi and address some privacy concerns.

8.3 GameFi
Dogechain will provide developers with the ability to build entire virtual worlds and blockchain
games on the Dogechain smart contract framework. As a result, the $wDOGE and $DC
cryptocurrencies will enable users to participate in virtual gaming economies and share digital
resources in their favorite metaverses.

9. Implementation details
The source codes and further information are available on https://github.com/Dogechain-lab.

10. References
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