Elon Musk Backs Dogecoin Fee Axe Proposal
Leading Dogecoin developers and Elon Musk are backing an improvement proposal for Dogecoin.
The proposed change will reduce the minimum transaction fee from 1 DOGE to 0.01 DOGE.
Dogecoin’s price jumped 8% after Musk backed the proposal on Twitter.
Share this article
Dogecoin gained 8% yesterday thanks to Elon Musk’s tweet in support of a key fee change proposal.
Elon Musk Shows Supports for Dogecoin
Tesla and SpaceX founder Elon Musk has endorsed a Dogecoin development proposal to reduce the transaction fees by 100x.
Ross Nicoll, a Dogecoin Core contributor, shared a tweet related to the fee reduction proposal Sunday, to which Musk replied that it was “important to support.”
Important to support
— Elon Musk (@elonmusk) June 28, 2021
The recommended lower limit for sending a DOGE transaction is 1 DOGE. Patrick Lodder, the developer who created the proposal, wants to reduce this amount to 0.01 DOGE.
Lodder suggested the changes “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.”
The 1 DOGE limit raised concerns about the feasibility of the network as DOGE’s value reached a high of $0.74 this year. The rising transaction fees acted as a negative feedback loop to its price as networks like Litecoin and Bitcoin Cash were offering cheaper transactions.
In comparison, the peak transaction fee on Litecoin was less than $0.10. The protocol improvement proposal requires a change in the relay fees, a lower dust limit, and default block inclusion fees of 1 DOGE/kb.
Once 30% of nodes accept transactions with 0.01 DOGE as the minimum fees, a new default fee can be set, the proposal notes.
Lodder has proposed changing the network’s design by slashing the relay network’s limitations and handing back the control to nodes and miners. The proposal includes alternative ways to implement the ideas.
Dogecoin’s price has retraced more than 50% of yesterday’s gains. It was last changing hands at $0.25. The meme-currency currently faces resistance from the 50-day moving average at $0.34 and horizontal resistance at $0.30. The support levels are at $0.19 and the 200-day moving average (EMA) line at $0.16.
Dogecoin’s price recently fell below $0.20, marking a devastating retracement from the highs it recorded earlier this year. The price jump shows that Musk’s active support continues to create a tailwind for the crypto, but there is considerable sell pressure too.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
After Bitcoin, SEC Commissioner Hester Peirce Backs DeFi
Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), recognized that DeFi is “a rapidly growing corner of the crypto world with significant money.” She added that…
The Dogecoin Bubble May Have Finally Popped
Amid Bitcoin’s ongoing correction, Dogecoin is crashing at a far quicker pace in what looks like a bubble that has burst at last. Dogecoin’s Decline China’s recent restrictions on Bitcoin…
Crypto Briefing’s CB10 Index Sees Large Rebalance to ETH, DOGE
Crypto Briefing’s CB10 index of the top ten cryptocurrencies weighted by market capitalization has continued to outpace Bitcoin in this bull run. The index’s monthly reconstitution was performed at 10…
What is Kusama? How Polkadot’s playground accommodates blockchain de…
Kusama is relatively young and was founded in 2019 by Dr. Gavin Wood, who also founded the Web3 Foundation and co-founded Ethereum. The team behind Kusama is essentially the same…