Dogecoin Co-Creator Proposes Fee Reduction, Gets Backed by Elon Musk

Jafrin  |  Jun 24, 2021

Dogecoin co-creator, Ross Nicoll has proposed an upgrade for the reduction in transaction fee for the popular meme-based crypto from 1 DOGE to 0.1 DOGE. Elon Musk, who has been working with DOGE developers for two years now says it would be an important improvement.

Ross Nicoll Proposes Upgrade for Fee Reduction For Dogecoin

Responding to this, Tesla CEO Elon Musk tweeted back saying the new fee reduction code is an important improvement for the Dogecoin ecosystem. As revealed last month, Musk has been advising the developers behind Dogecoin since 2019.

However, for the plan to be adopted, the proposal would need to win community support and from Dogecoin miners and node operators. 

Although Musk offered to fund Dogecoin development, the team had turned down the offer. In mid-May, the Tesla CEO tweeted that he was working with Dogecoin developers while declining Bitcoin as payment at his electric car manufacturing company.

Dogecoin's core developer who originally introduced the fee reduction, Michi Lumin, revealed that the team had plans to lower fees even before Musk got behind the upgrade.

Smaller Purchases Inconvenient in DOGE Ecosystem

Nicoll initially emphasized that he has been hearing many crypto enthusiasts being doubtful about the DOGE fee reduction code. Hence, the co-creator pushed to a second live discussion on the DOGE transaction code.

While many are still in favor, it’s up to individual node operators and miners whether they should introduce the forthcoming release. At least two-thirds of the network must adopt the upgrade and a further update which will lower the default fee, according to developers.

DOGE has seen a substantial price increase over the past few months, making it inconvenient for tipping and smaller purchases with its mandatory 1 DOGE fee per transaction.

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