It’s a positive day for Dogecoin price. The meme token is $0.257, up 4.29% in the last 24 hours. According to Coingecko, it is up 45.4% from the last 7 days.
It has been gaining traction as the focus changes to the meme coin’s long-term viability and faster transaction times than its larger competitors. Now another motivation for investors to flock to DOGE is the possibility of decreased fees.
The network fees have risen in tandem with Dogecoin’s rapid climb in value this year. As a result, on-chain transactions have been unduly disincentivized. To address this issue, developers are considering pricing policy modifications that will result in a 50x reduction in fees at the very least.
Dogecoin core developer Patrick Lodder submitted the proposal on Github, with developer Michi Lumin leading the coding update. It has received widespread support, notably from the “Dogefather,” Tesla CEO Elon Musk, who tweeted that the fee change “is important to support.”
Important to support
— Elon Musk (@elonmusk) June 28, 2021
In addition to Musk, Dogecoin co-founder Billy Markus supported the price reduction suggestion. His tweet read,
“I Set It To 1 Doge In 2013 After A Spam Attack, Cool To See It Get Reduced 8 Years Later!”
Also, the social media responses have echoed a resounding approval of the proposal. Some even go so far as to argue that this is a pivotal moment in Dogecoin’s evolution.
What are the Potential Changes?
The proposed fee modifications were introduced by the Dogecoin team in order to keep the network competitive with Litecoin and bitcoin. The idea states that
“Where Transacting DOGE Used To Be 10x Cheaper Than Transacting LTC, It Is As Of Ting Nearly 5x More Expensive. Therefore, It Makes Sense To Reduce Fees By At Least 50x To Stay Competitive.”
The potential changes are towards:
- Lower the minimal relay fee to 0.001 DOGE
- Lower the dust limit to 0.01 DOGE
- Set the default block inclusion fee rate to 0.01 DOGE
- Bring back a functional free transaction space
- Lower the default fee rate to 0.01 DOGE
The usual fees on the Dogecoin network are cheap in comparison to other coins. The current average charge is approximately $0.49. In comparison, Bitcoin costs $7.12 and Ethereum costs $4.17. This proposal to reduce fees will give Doge a higher edge.