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DOGE Dogecoin co-founder proposes to buy DOGE for US$1.2 trillion to replace Trump's $5000 universal distribution plan.
Billy Markus, co-founder of Dogecoin, has proposed an alternative: rather than issuing a nationwide $5000 subsidy to American adults, use the funds to buy $1.2 trillion worth of Dogecoin. Economists warn that massive direct cash payments could stimulate consumer demand, expand federal spending and exacerbate inflationary pressures on households nationwide.
Currently, the market value of Dogecoin is much lower than the cost of the proposal. At current supply and liquidity levels, any purchase plan involving a $1.2 trillion scale is not practical.
Analysis of Economic Consequences and Market Reality
According to Marcus, in an economic environment that does not require additional price pressure, President Trump's proposed check-issuing plan may exacerbate inflation. Marcus, who works as "Shibetoshi Nakamoto" on social media platform X, proposed this dogcoin alternative through his trademark sense of humor and market commentary. However, his response also highlighted concerns about the huge cost of Trump's proposed payment plan and its potential economic consequences.
Trump has promised to provide a $5000 dividend to each American adult if Republicans retain control of both houses of Congress in the November midterm elections. It is estimated that distributing the funds to approximately 240 million eligible adults would cost the U.S. government approximately US$1.2 trillion. In addition, the proposal lacks a detailed financing framework, and officials may need to obtain congressional authorization before distributing money.
Many economists believe that while another round of broad direct payment plans may boost consumer demand, it will also put additional pressure on the prices of basic commodities. Consumers are already facing concerns about affordability, with recent surveys showing that household financial confidence is weakening and inflation remains high. As a result, Marcus believes that handing out thousands of dollars to eligible adults could have an inflationary effect, undermining the expected benefits of the payment plan.
The size of the Dogecoin market highlights the absurd size of the proposal
Since the amount required far exceeds the current valuation of the cryptocurrency, purchasing $1.2 trillion worth of Dogecoin will face huge practical obstacles. During the reporting period, the trading price of Dogecoin was close to US$0.0849, giving its market value to approximately US$13.2 billion. Therefore, based on the valuation at the time, the proposed purchase amount would be more than 90 times the total market value of Dogecoin.
The circulating supply of Dogecoin is approximately 171.6 billion coins, although the cryptocurrency has no fixed maximum supply limit. If $1.2 trillion is spent at the reported price, in theory more than 14 trillion DOGE units would be needed, which is far in excess of its available circulating supply. In addition, huge buying pressure can reduce market liquidity and push DOGE's price well above the starting price during any acquisition attempt.
Dogecoin miners introduce approximately 5 billion new coins each year, which creates a predictable circulation although there is no limit to the total supply. Its fixed annual issuance means that as the total circulation supply increases, the percentage inflation rate of Dogecoin will gradually decrease.
Marcus did not propose formal procurement activities or economic proposals for lawmakers to consider. Instead, his remarks used Dogecoin's small valuation to illustrate the extraordinary fiscal scale of Trump's proposed universal payment plan.
