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Sophia's Blog

Important To Support Dogecoin Fee Reduction Proposal: Elon Musk

Elon Musk's Development Efforts Could Give Dogecoin A 'Value Floor,' Hopes Cardano Founder

Elon Musk's Development Efforts Could Give Dogecoin A 'Value Floor,' Hopes Cardano Founder

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said in the early hours of Monday that it was “important to support” a Dogecoin (CRYPTO: DOGE) fee change proposal.

The proposal noted that while DOGE used to be ten times cheaper than transacting on Litecoin (CRYPTO: LTC), it is now nearly five times more expensive. This high fee has come around due to “all time high exchange rates against both USD and [Bitcoin (CRYPTO: BTC)],” as per the proposal.

“It makes sense to reduce fees by at least 50x to stay competitive,” the proposal noted.

Historically, the fee stood at 1 DOGE per kilobyte with a minimum output size recommended to be 1 DOGE to limit spam; any output smaller than that is penalized with an additional 1 DOGE fee, as per the proposal.

The average Dogecoin transaction fee stands at 2.02 DOGE or ($0.492) according to BitInfoCharts, at press time.

Last month, Musk had disclosed that he was working with Dogecoin developers to “improve system transaction efficiency” of the cryptocurrency.

Musk had also called upon his social media following to submit ideas that could lead to improvements in the Shiba Inu-themed cryptocurrency last month.

Elon Musk’s Development Efforts Could Give Dogecoin A ‘Value Floor,’ Hopes Cardano Founder

Hoskinson said he hoped that a “compromise can be made where real developers come in and they start working on DOGE to create some use and utility for it so at least it has a value floor and won’t collapse.”

Notably, Hoskinson said during the podcast that he was not against the idea of Dogecoin and Cardano working together. He said, “it would be a lot of fun.”

DOGE traded 9.29% higher at $0.228 at press time over 24 hours. The Shiba Inu-themed cryptocurrency was up 8.6% against both Bitcoin (CRYPTO: BTC) and ETH.

Last month, Hoskinson had released a video directed at Musk on how to improve Dogecoin. The video featured almost a dozen papers on transaction speed, quantum resistance, smart contracts, and more. 

Musk had asked his social media following for help for improvements to DOGE and asked them to submit their ideas on GitHub and Reddit.

Dogecoin co-creator Billy Markus said in April that the meme coin’s development has kept pace with Bitcoin. This month, Markus said of Musk’s DOGE development efforts that he was “not super excited about people talking about doing things, only people actually doing things.”

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