The arrival of the Trump 2.0 era has further fueled the crypto ecosystem, with every action of his closely watched by the industry. On January 21, in keeping with his campaign promise, the White House officially issued an executive order to establish the Department of Government Efficiency (DOGE). The goal is to modernize federal technology and software to maximize government efficiency and productivity, in line with the President’s DOGE agenda. The department will be led by Elon Musk, CEO of Tesla and SpaceX.

Source: doge.gov

This article will explore the Department of Government Efficiency’s history, organizational structure, responsibilities, and its connection to Elon Musk and the Memecoin DOGE, offering users a detailed reference.

What is the Department of Government Efficiency (DOGE)?

The name DOGE (Department of Government Efficiency) was first introduced in August 2024 when Trump announced that, if elected, he would appoint Elon Musk as a government advisor or cabinet member. An X account called @dogeofficialceo suggested that Musk could lead this new department, and Musk himself retweeted the idea, calling it a perfect name.

Source: @elonmusk

Throughout the presidential campaign, Trump and Musk publicly endorsed the DOGE department. They emphasized that the department would focus on restructuring federal agencies, eliminating bureaucratic inefficiencies, cutting federal jobs, reducing wasteful spending, and streamlining excessive regulations. These bold proposals quickly captured public attention.

On November 24, Trump confirmed that Musk and entrepreneur Vivek Ramaswamy would co-lead the Department of Government Efficiency. However, recent updates reveal that after two months, Vivek has stepped down from the DOGE department to campaign for the governorship of Ohio.

Source: @realDonaldTrump

On January 21, the White House officially issued an executive order to establish the DOGE department. According to the directive, the DOGE department will be structured as follows:

1) USDS Restructuring
The United States Digital Service (USDS) will undergo restructuring and will be renamed the United States DOGE Service (USDS), which will be integrated into the President’s executive office.

2) Creation of Temporary Organization
Within USDS, a new temporary entity, the “United States DOGE Service Temporary Organization,” will be created. This body will be led by the USDS administrator, who will report to the White House Chief of Staff and oversee the implementation of the President’s 18-month DOGE agenda. This temporary organization will be dissolved on July 4, 2026, marking the 250th anniversary of the Declaration of Independence.

3) DOGE Teams
In consultation with USDS, each agency leader will form a DOGE team within their respective agency. This team will typically consist of at least four members: a DOGE team leader, an engineer, a human resources specialist, and a lawyer.

The Scope and Controversies of DOGE

In short, the Department of Government Efficiency (DOGE) focuses on three main areas:

1) Streamlining the Government Bureaucracy
It is reported that the U.S. federal government consists of approximately 450 to 500 agencies. The bloated bureaucratic structure has resulted in low efficiency. DOGE aims to drastically reduce the number of agencies, including departments such as the Department of Education and the Federal Bureau of Investigation (FBI).

2) Reviewing and Optimizing Government Spending
One of DOGE’s goals is to cut wasteful spending. Recent developments show that DOGE has pushed 24 government departments—including the Department of Education, Department of Labor, Department of Treasury, and Department of Defense—to cancel 85 contracts related to Diversity, Equity, and Inclusion (DEI), totaling about $1 billion.

3) Personnel Management and Institutional Reform
According to statistics, there are approximately 22 million government employees in the U.S., accounting for about 6% of the population. This large workforce has led to significant fiscal waste. To address this, DOGE plans to reduce government spending through large-scale layoffs.
However, despite Trump’s formal approval of the department’s creation, there are still some obstacles in its formal implementation. Issues such as the exact scope of the department’s authority and limits on its powers remain unresolved. For example, DOGE has recently sought to review the efficiency of the U.S. payment system by intervening within the Department of Treasury. While the Treasury Secretary has approved this request, it remains unclear how DOGE will intervene and whether they have the authority to stop individual payments or make any changes.

The Connection with Elon Musk and Dogecoin

The official DOGE Department website went live the same day the DOGE Executive Order was issued. Interestingly, the Dogecoin logo was briefly displayed before being quickly removed.

Source: doge.gov

Given that the abbreviation for the Department of Government Efficiency is the same as that of Memecoin DOGE, and Elon Musk has ties to both, the market has strongly linked the two. Though the DOGE website only briefly featured the Dogecoin logo, it left plenty of room for speculation. After all, Musk, known as the “father of Dogecoin,” is involved in many surprising ventures, and under his leadership, anything seems possible. Here’s a brief look at Dogecoin’s development and its connection with Musk.

• At the end of 2013, software engineers Billy Markus and Jackson Palmer created Dogecoin, inspired by the internet-famous Shiba Inu dog Kabosu from Japan. They wanted to create a cryptocurrency that was more fun and accessible than Bitcoin. Dogecoin was widely welcomed on platforms like Reddit, where it quickly became a popular tipping currency.
• In 2014, Billy and Jackson both stepped away from developing Dogecoin, and a new core development team was formed, which continues to this day.
• In December 2017, Dogecoin’s market value first surpassed 1 billion USD.
• In April 2019, Musk publicly declared that Dogecoin was his favorite cryptocurrency, calling it “cool” on the X platform.
• In February 2021, Dogecoin’s market value exceeded 10 billion USD for the first time.
• In May 2021, Musk appeared on “Saturday Night Live” and referred to himself as the “Dogefather,” calling Dogecoin the future of currency. That month, Dogecoin reached an all-time high of $0.73, with a market cap of $88.7 billion.
• In August 2021, the Dogecoin Foundation was restructured, with Musk serving as the legal and financial advisor, and Ethereum co-founder Vitalik Buterin joining as a blockchain and cryptocurrency advisor.
• In January 2022, Musk’s Tesla began accepting Dogecoin for certain merchandise.
• In January 2024, Musk confirmed in a live stream that he still holds Dogecoin, and SpaceX also holds a large amount of Bitcoin.

Because of Musk’s favoritism towards Dogecoin, his influence over this cryptocurrency soared once again after Trump’s victory. Data shows that the price of DOGE token began to surge from early November 2024, rising from $0.15 to a peak of $0.48 in about a month, an increase of 220%. Although the price has since fallen back, it still holds a market cap of $46.7 billion, making it the highest-valued Memecoin globally.

Source: TradingView

Future Prospects and Challenges

According to reports, the Department of Government Efficiency in the U.S. has begun engaging with several public blockchain projects and is evaluating their technologies. These discussions focus on using blockchain for purposes such as tracking federal spending, securing data, handling payments, and managing government buildings.

Meanwhile, the official DOGE Department X account has posted job listings for full-time paid positions, including roles for software engineers, information security engineers, and financial analysts, but applicants must be U.S. citizens. Marc Andreessen, co-founder of A16z and a supporter of Elon Musk, who has invested heavily in SpaceX, will help Musk recruit staff for the department.

Currently, the Department of Government Efficiency is progressing well. However, opinions about its establishment differ across the industry and the public.

Coinbase CEO Brian Armstrong sees the Department of Government Efficiency as a rare opportunity to enhance economic freedom in the U.S. and restore the nation’s health. He advocates for a constitutional amendment to cap total government spending (such as 10%) or to find a way to align incentives.

On the other hand, Ulrich Leuchtmann, head of foreign exchange and commodities research at Deutsche Bank, warns that Musk’s leadership of the DOGE department could have disastrous consequences for the U.S. economy. Leuchtmann questions Musk’s belief in drastic reform and doubts whether he can make wise decisions.

If the DOGE department proceeds with radical reforms, its impact could extend beyond just the economy, affecting politics, society, and more. For example, rapid large-scale layoffs could destabilize social structures and create significant issues while disrupting the functioning of government systems. In response, the U.S. government employee union has strongly opposed these changes and is prepared for a major fight.

Regardless of public opinion or the actual outcomes, the DOGE Department is closely intertwined with the crypto market, and its actions can trigger significant fluctuations in the prices of cryptocurrencies like Dogecoin. Musk’s influence is especially noteworthy as he frequently makes ambiguous statements that disrupt market stability, raising concerns about possible insider trading linked to his influence.

Musk was previously sued for promoting Dogecoin on the X platform, leading to volatility in the crypto market. The hacker group Anonymous also criticized Musk for inciting sharp fluctuations with his reckless social media posts. While these legal actions ultimately didn’t result in consequences, it’s clear that Musk’s behavior has a profound impact on the cryptocurrency market and affects the interests of investors.

Conclusion

The primary goal behind establishing the Department of Government Efficiency (DOGE) was to improve the efficiency and effectiveness of the U.S. federal government, thereby contributing to social stability and prosperity. However, with its name coinciding with the Memecoin DOGE, Elon Musk was appointed as its leader, and the ongoing actions of the department are now closely tied to the cryptocurrency market.

While the emergence of a government that is friendly to cryptocurrency holds great significance for the crypto ecosystem, the many uncertainties within this otherwise clear trend present challenges and opportunities for market participants. Therefore, participants in the market must stay alert, manage risks effectively, and avoid excessive speculation.