Recently, Elon Musk took to Twitter once again to make an important announcement about Dogecoin. At press time, DOGE is trading for $0.258 and has been out of the press for quite some time. The EV enterprise CEO endorsed a new proposal that is directed towards improving the Dogecoin blockchain. It should be noted that like Bitcoin, DOGE is also a Proof of Work blockchain project.
The Dogecoin fee change proposal was promoted by Ross Nicolle- a blockchain software engineer. The tweet was noticed and endorsed by Musk. The proposal is initiated and drafted by Patrick Lodder- CEO of Liberate, Inc. Lodder made the proposal public on Github, which is an IT services and software development company.
Lodder Claims that Transacting Dogecoin is Many Times More Expensive than Litecoin
According to Patrick Lodder presence of 1 DOGE transaction fee has un-incentivized the flow of transactions on-chain. He further added that many investors want to move their investments out of exchanges due to the perpetual loss of value. He explained that under the current regulations, Dogecoin trading has become five times more costly than Litecoin.
His proposal posits that the block inclusion fee should be lowered as much as 0.01 DOGE as a default setting. The proposal also calls upon all Dogecoin stakeholders to reduce the standard transaction fees for the meme cryptocurrency. It also postulates that it would be better to split fee control rights between node operators and miners rather than core developers.
Tesla CEO Believes that Dogecoin has Potential to Overtake Bitcoin
The recent tweet by Elon Musk proclaims that Dogecoin has the potential to outrun Bitcoin. He claimed that the satirical coin could be scaled up to the level that leaves behind the flagship cryptocurrency. Therefore, he also endorsed the ideas presented in the recent proposal. Lodder wants to retain only a functional fee for security reasons on the Dogecoin chain to ensure incentives for traders.
Aside from his plans to make Dogecoin transactions 100 times cheaper, his main focus is to accelerate the block time for DOGE and expand the block volume by a factor of 10. However, among Bitcoiners, the scaling proposal endorsement was not very well received. Many claimed that the issue was set aside a few years ago.
Forex Trading can be risky, to cut the risk. Sign up to FX Delta for consistent results. The Best Forex trading signals for an average of 8% gains. Click here to sign up.