Tesla CEO Elon Musk, the world’s richest man, is co-leading a new agency called the Department of of Government Efficiency (DOGE) with Trump’s former political rival Vivek Ramaswamy, Donald Trump announced in a Tuesday statement.

"This will send shockwaves through the system, and anyone involved in government waste, which is a lot of people!" Musk said on social media.

Musk donated more than $118 million to fund Trump’s successful presidential bid, and his appointment is already drawing intense scrutiny. Through his ownership of Tesla and SpaceX, Musk is involved in multiple contracts with government agencies and will likely benefit from increased deregulation and reduced red tape.

On Wednesday, Musk uploaded an image of DOGE’s new logo featuring a cutesy cartoon animal. Users quickly praised the image for being relatable and cherubic, a far cry from the image of most government departments.

The acronym DOGE also offers a risible nod to Dogecoin, a popular meme coin regularly promoted by Musk. Earlier this year, the billionaire was embroiled in a high-profile $258 billion insider trading case, which claimed that Musk was artificially boosting the cryptocurrency at the expense of ordinary Dogecoin investors. This summer, a judge permanently dismissed the lawsuit.

The price of Dogecoin soared in the aftermath of Trump's DOGE announcement, rising to almost 40 cents a coin on Wednesday afternoon. Analysts are speculating that Dogecoin may approach $1 a coin if Musk continues to pump the meme coin from his perch in Washington.

Although the Department of Government Efficiency will not be an official government agency, it will offer recommendations and “drive large-scale structural reform, and create an entrepreneurial approach to government never seen before” by partnering with the U.S. Office of Management and Budget, Trump's statement said.

"A smaller government, with more efficiency and less bureaucracy, will be the perfect gift to America," Trump said.