Mining keeps Dogecoin’s [DOGE] blockchain alive; it’s how new transactions get securely checked with cryptography and added to the public record. The folks doing this, the miners, get DOGE for letting their computers do the heavy lifting, and they are vital to the network. This whole setup not only protects Dogecoin but also keeps it decentralized, just as intended. Back in 2013, software developers Billy Markus and Jackson Palmer cooked up Dogecoin, initially as a bit of fun poking at Bitcoin [BTC], complete with the famous Shiba Inu “Doge” meme.
Breaking Down Dogecoin Mining: How Proof-of-Work and Scrypt Actually Function
Dogecoin, much like Bitcoin in its early days, relies on a Proof-of-Work (PoW) system for everyone to agree on transactions. This means miners have to throw their computer’s processing power at solving complex math puzzles. When a miner solves one, they get to approve a bunch of transactions, bundle them into a block, and tack that new block onto the existing Dogecoin blockchain. For this job and the electricity it burns, miners currently pocket 10,000 DOGE per block, plus any transaction fees people paid for the transactions in that block.
A big way Dogecoin differs is its choice of the Scrypt algorithm, steering away from Bitcoin’s SHA-256. Colin Percival came up with Scrypt in 2009, designing it as a “memory-hard” method for creating keys from passwords. “Memory-hard” means Scrypt doesn’t just demand a lot of raw computing power; it also chews through a good amount of Random Access Memory (RAM). The original goal here was to make it tougher for specialized mining hardware, known as Application-Specific Integrated Circuits (ASICs), to take over, hopefully leveling the playing field for people using regular CPUs and GPUs.
The Scrypt algorithm makes solving crypto puzzles harder by:
- Forcing miners’ computers to quickly spit out random numbers.
- Making them store those numbers in the processor’s RAM.
- Needing to constantly dip back into that RAM before a correct answer can be submitted.
This need for both computing muscle and lots of memory initially meant you could mine Scrypt fairly well with off-the-shelf computer parts. However, that hope of being “ASIC-resistant” didn’t last forever, as specialized Scrypt ASICs eventually hit the market. Today, these custom-built Scrypt ASICs are really the only sensible tools if you want to mine Dogecoin profitably.
How Dogecoin Mining Has Changed
Dogecoin mining isn’t what it used to be; it’s been through quite a journey:
- The Early Days: When Dogecoin first appeared, mining it was pretty simple. You just needed a normal computer with enough hard drive space and a graphics card good enough for gaming.
- Pools Popping Up: As the total mining power on the Dogecoin network exploded, an individual miner’s chances of actually finding a block by themselves shrank dramatically. This led miners to team up in “mining pools,” where they’d combine their computer power and split any rewards based on how much work each person contributed.
- ASICs Taking Charge: The game completely changed when ASICs built specifically for Scrypt came out. These machines offered way more mining power for the electricity used than CPUs or GPUs ever could. Now, if you want to make real money mining Dogecoin, you’re almost certainly using these specialized ASIC rigs.
- Mining with Litecoin: A major turning point came in 2014. Dogecoin adopted “merged mining”—sometimes called Auxiliary Proof-of-Work (AuxPoW)—with Litecoin [LTC]. Because both cryptocurrencies use the Scrypt algorithm, miners can work on finding blocks for both Litecoin and Dogecoin simultaneously, using the exact same computational effort. This partnership strengthens the security of both networks by bumping up the total hash rate. Miners basically submit their proof of work to both blockchains and can earn rewards from both if they get lucky.
What You Need to Mine Dogecoin: Gear and Programs
Anyone looking to mine Dogecoin will need some specific equipment and software:
- ASIC Miners: These are the kings for mining Dogecoin effectively. Popular choices include the Bitmain Antminer L7 or the Goldshell Mini-DOGE Pro.
- GPU Mining: While ASICs are much better, powerful graphics cards can still be used, especially if you’re new to mining or want to mine various Scrypt-based coins.
- CPU Mining: Generally, this is a bad idea because the chances of making a profit are incredibly slim.
- Mining Software: You’ll need programs like CGMiner (great for ASICs), EasyMiner (easy for GPUs), or MultiMiner (works with both GPUs and ASICs). These help manage your mining machines and connect to the Dogecoin network.
- Dogecoin Wallet: Having a secure Dogecoin wallet is essential to receive any DOGE you mine. You can go with the official Dogecoin Core wallet or choose lighter options such as Exodus or Trust Wallet.
- Mining Pools: For most miners, joining a mining pool (like Prohashing, F2Pool, or ViaBTC) is highly recommended. It leads to more consistent payouts because rewards are shared.
Figuring Out if Dogecoin Mining Pays
Whether you can turn a profit from Dogecoin mining hinges on a mix of elements:
- Your Hardware’s Muscle: The hash rate (mining speed) and electricity usage of your mining setup.
- Electricity Prices: Mining uses a lot of power, so finding cheap electricity is a big deal.
- Dogecoin’s Price: How much DOGE is worth in dollars or other traditional money directly impacts the value of what you mine.
- Mining Difficulty: The network automatically makes it harder or easier to find blocks based on the total mining power currently active, affecting your chances.
- Pool Fees: Mining pools usually skim a small percentage off your earnings.
Despite its funny beginnings, Dogecoin mining has become a serious operation, even pulling in corporate players. The arrangement to mine it alongside Litecoin has significantly boosted its network security and kept it chugging along.
Dogecoin Block Rewards: What’s in It for Miners
Dogecoin’s Proof-of-Work system gives miners a reason to help by rewarding them for securing the network. Knowing the current block reward and how it got there is key to understanding the Dogecoin world.
As of May 2025, miners who find a Dogecoin block get a flat 10,000 DOGE. This amount has been fixed since block 600,000. With the network aiming for a new block every minute, this means roughly 14.4 million new DOGE enter circulation every day.
Besides the block reward, miners also scoop up the transaction fees from the transactions they pack into their newly mined blocks. In practice, though, these fees have usually been a tiny slice of a miner’s income, often under 1%. Dogecoin is known for its relatively cheap transaction fees, which can be anywhere from 0.01 DOGE to 1 DOGE, depending on the transaction’s data size, not its monetary value.
Dogecoin’s reward setup has changed quite a bit since it launched in December 2013:
- Random Rewards at First (Blocks 0 – 100,000): The reward for a block could be anything from 0 to 1,000,000 DOGE.
- Scheduled Reductions (Before Block 600,000): Dogecoin initially planned for the maximum reward to shrink over time:
- Blocks 100,001 – 200,000: 0 to 500,000 DOGE
- Blocks 200,001 – 300,000: 0 to 250,000 DOGE
- This continued, with the cap dropping, until block 600,000.
- Switch to Fixed Rewards (Around March 2014, near Block 145,000): The developers got rid of the random reward system to stop big mining pools from trying to game it.
- Permanent Fixed Reward (From Block 600,000 onwards, early 2015): The 10,000 DOGE per block reward was locked in for good. This move was made to support the network’s security long-term and to help replace coins that get lost. Unlike Bitcoin, Dogecoin has no upper limit on its total supply, so these rewards will continue indefinitely, adding about 5 billion new DOGE to the supply each year.
This change to a constant, unending reward was designed to push DOGE as a coin for spending rather than just an investment to hold, aiming to keep fees low and miners happy.
Dogecoin Network Vital Signs: Hashrate and Difficulty
The Dogecoin network’s hashrate and mining difficulty are key health-check numbers, showing how secure and smoothly it’s running.
- Current Stats (Mid-May 2025): Dogecoin’s hashrate is floating around 2.51 Petahashes per second (PH/s), though some reports show it slightly higher, like 2.63 PH/s. The mining difficulty is about 32.80 Million (M), but you might also see figures around 36.75M due to normal network changes.
- What They Mean:
- Hashrate: This is the total computing power everyone is throwing at mining Dogecoin. A higher hashrate generally means the network is more secure.
- Difficulty: This number shows how tough it is to find a new block. It adjusts itself automatically to try and keep Dogecoin’s block time at around 60 seconds.
- How They Relate: If more mining power (hashrate) joins the network, the difficulty goes up to keep block times steady. If hashrate drops, difficulty goes down. Dogecoin’s difficulty changes with every block, making it more responsive than Bitcoin, which adjusts less frequently.
- A Look Back: Dogecoin’s hashrate was pretty jumpy in early 2014. This settled down after a change to its difficulty adjustment method in March 2014 and then, crucially, when it started merged mining with Litecoin in September 2014. This merged mining has since helped keep Dogecoin’s hashrate more stable, and it has grown significantly – reports show a 553.72% jump from May 2023 to May 2025, even hitting a record 6.70 PH/s in February 2025.
- What Pushes These Numbers: Dogecoin’s price, new and better Scrypt ASIC mining machines, and how profitable mining is overall are the main things that affect hashrate and difficulty.
Simply put, Dogecoin’s hashrate and difficulty figures are like a pulse check for the network. Working with Litecoin for merged mining and the general expansion of the crypto world have helped build a stronger Dogecoin network over the years.
The Partnership: How Merged Mining Affects Dogecoin
When Dogecoin started merged mining (also known as Auxiliary Proof-of-Work or AuxPoW) with Litecoin back in 2014, it hugely improved Dogecoin’s network security and often made mining more profitable. By letting miners work on both Scrypt-based coins at the same time, Dogecoin could tap into Litecoin’s much larger pool of mining power. This reportedly sent Dogecoin’s own hashrate soaring by 1500% in just one month, making the network much harder to attack (specifically, a 51% attack). This close link means Dogecoin’s security is now very much tied to Litecoin’s. In fact, by July 2019, nearly 90% of Dogecoin’s mining power was coming from big Litecoin mining pools.
For miners, this setup means they can earn rewards from both coins for the same amount of computer work, potentially increasing their income. Of course, actual profits still depend on the market prices of both DOGE and LTC, how difficult it is to mine them, and the costs of running the mining equipment. While many believe merged mining effectively “saved” Dogecoin and is key to its ongoing security, it does mean Dogecoin is quite reliant on the Litecoin ecosystem. There’s also a slight theoretical risk that if a few very large mining pools gain too much control, it could make Dogecoin less decentralized.
Ranking the Gear for Dogecoin Mining
If you’re looking to get into Dogecoin mining, it’s important to know the best tools for the job, especially since it can be mined together with Litecoin.
- ASIC Miners (Built for Scrypt): In 2025, these are hands-down the top pick for Dogecoin. These machines are custom-designed for the Scrypt algorithm and deliver the best mining speeds (hash rates) and power efficiency (hashrate per watt).
- A Few Examples & Their Efficiency:
- Bitmain Antminer L9 (16 GH/s model): Gives about 4.76 MH/s for each watt of power.
- Bitmain Antminer L7 (9.5 Gh/s model): Roughly 2.77 MH/s per watt.
- Elphapex DG Home 1 (2.1 GH/s): Around 3.33 MH/s per watt.
- VolcMiner D1 Hydro (30.4 GH/s): Delivers about 4 MH/s per watt.
- The Cost: They don’t come cheap, costing anywhere from several hundred to over $11,000. For instance, an Antminer L7 8550Mh might be listed for around £7,630.
- The Good: Fastest mining, most power-efficient.
- The Bad: Very expensive, noisy, generate a lot of heat, and can only be used for Scrypt mining.
- GPU Miners (Graphics Cards): These were once a decent option, but ASICs have largely pushed them aside for serious Dogecoin mining. GPUs are more versatile for mining other coins or for general computing tasks, but they’re not as good for Scrypt.
- Efficiency: They provide much less Scrypt mining power per watt than ASICs. You might see performance numbers like an NVIDIA RTX 4090 hitting around 120 MH/s for Ethash, but that doesn’t directly translate to Scrypt performance.
- The Cost: More affordable to start with, but high-end GPUs can still be quite expensive (an RTX 3090 could be about $3,099, for example).
- The Good: Cheaper to get into, can be used for other things besides mining.
- The Bad: Use a lot of electricity for Scrypt mining, and it’s hard to make a profit on DOGE with them because ASICs are so much better.
- CPU Miners (Your Computer’s Main Processor): Not a good idea. They are extremely inefficient and you won’t make money mining Dogecoin this way in 2025.
- The Good: You already have one in your computer.
- The Bad: Very slow mining speeds, wastes electricity, unprofitable, and could make your computer overheat.
If you’re serious about mining Dogecoin and hope to make a profit, Scrypt ASICs are really the only sensible choice. You’ll need to carefully work out the costs of the hardware, your electricity rates, the current price of DOGE, and the network’s mining difficulty.
