- Elon Musk recently tweeted in support of Dogecoin’s proposed fee change.
- DOGE developers would like to reduce on-chain fees by half.
- Also, the fee change is part of the Dogecoin Core deployment.
Tesla CEO Elon Musk has once again spoken out in favor of popular meme crypto Dogecoin. Dogecoin is proposing a fee change as part of its Dogecoin Core deployment as submitted by Doge developer Patrick Lodder.
Musk showed his support in response to a tweet by another Doge developer Ross Nicoll.
Lodder explained the new fee structure on Reddit. He stated that both Doge and the Dogecoin Core policy will be “deployed to the network over multiple software releases.” Lodder also added,
This proposal to all dogecoin stakeholders suggests to reduce average fees 100x for standard transactions on the Dogecoin chain, split full control over all aspects of fees between miners and node operators, rely less on core development, and bring back a functional (small) free transaction space that incentivizes keeping the network healthy.
Notably, Dogecoin fees were first introduced in 2014 to help reduce spam on the network. However, DOGE only enforced the new fee in 2018 via a relay of Dogecoin Core nodes. These nodes triggered when nodes make a decision to broadcast a transaction.
Lodder also noted that the fee implementation was not successful. For example, about 8% of transactions were still using the fee “free tier” inherited from Bitcoin Core. Plus, 11% of all transactions were not implementing fees correctly due to many wallets defaulting to a Bitcoin-like fee calculation.
In addition, Lodder shared that the current 1 DOGE fee has become steep. This is due to increased exchange rates against BTC and US$. As such, DOGE holders are opting to keep their coins on central exchanges (CEX). The move is to avoid paying high fees by moving their DOGE to secure wallets. As a result, Lodder is proposing a 50% fee cut to make the altcoin more competitive.
Notably, Musk started working with DOGE developers to improve the blockchains transaction in May. Musk partnered with DOGE to find a more energy-efficient alternative to Bitcoin.