Dogecoin developers and Elon Musk back transaction fee reduction upgrade proposal
- Dogecoin developers are rolling out a new improvement that would reduce fees by 90%.
- Elon Musk, who has been working with DOGE developers since 2019, says it would be an important improvement.
- The proposal would need to win community support and from Dogecoin miners and node operators.
Dogecoin core developers have been working on an important improvement for the network. Tesla CEO Elon Musk stated that the new fee reduction code is an important improvement for the meme-based blockchain.
Dogecoin developers to persuade miners and community
Dogecoin developers and Elon Musk are pushing an upgrade proposal to reduce transaction fees from 1 DOGE to 0.1 DOGE, making it a more cost-effective payment method.
In order for the upgrade to be approved and the fee reduction to come into effect, the proposal must be able to win community support, including from Dogecoin miners and node operators.
Further down the road, Dogecoin developers and Musk are planning to introduce even lower fees of 0.01 DOGE.
While the SpaceX CEO has been deemed “Dogecoin CEO” since 2019, Musk has been advising the developers behind Dogecoin since then.
Musk has encouraged the team behind the meme-based cryptocurrency to improve higher transaction throughput and also provided plenty of advice and input, according to Dogecoin developer Ross Nicoll.
Although Musk offered to fund Dogecoin development, the team turned down the offer. In mid-May, the Tesla CEO tweeted that he was working with Dogecoin developers while deciding to halt accepting Bitcoin as payment at his electric vehicle company.
Dogecoin's core developer who introduced the fee reduction, Michi Lumin, revealed that the community had plans to lower fees even before Musk got behind the upgrade. The billionaire entrepreneur believes that this key objective is “an important improvement.”
DOGE has seen a substantial price increase over the past few months, making it unsustainable for smaller purchases of the meme-based token.
Going forward, Dogecoin developers and Musk must persuade the community to accept their proposal. Individual node operators and miners would have the ultimate choice of whether they would like to introduce the upcoming release.
Miners must be convinced that they will benefit from a lower fee, and at least two-thirds of the network must adopt the upgrade.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
