Dogecoin developers have proposed to reduce transaction fees from 1 to 0.1 DOGE in order to return the coin’s attractiveness for making payments.
Dogecoin lead developer Michi Lumin said that reducing transaction fees is one of the main goals of the project, and its implementation will be “an important improvement” in the way Dogecoin works. In the future, the developers plan to introduce a transaction fee of 0.01 DOGE.
Lumin said that the developers had such plans even before the CEO of SpaceX and Tesla Elon Musk put forward the proposal.
In May, DOGE traded around $ 0.73, and despite the recent drop in the DOGE rate to $ 0.17, this coin is still ranked sixth in terms of capitalization. However, if DOGE recovers, a 1 DOGE commission per transaction will make this coin unacceptable for small purchases.
The proposal to reduce the commission should be supported by DOGE miners and node operators. At least two-thirds of the network participants must accept the current and future updates, which are aimed at reducing the default transaction fees. According to the developers, these changes are being made both for the development of Dogecoin and in the interests of the community and miners, who can also benefit from the reduced fees.
Lumin made the case for implementing these changes. Dogecoin is based on the same code as Bitcoin, but these blockchains differ in the way miners are rewarded. Dogecoin miners receive 10,000 DOGE for each mined block, plus 20-30 DOGE, taking into account the current transaction fees. Since Dogecoin does not have a “commission market,” transactions should not compete for block space, and transaction rewards should not be the source of miners’ profits, Lumin explained.
She added that Dogecoin fees were originally introduced to get rid of spam and dust when small amounts in DOGE are used for denial of service attacks or other malicious purposes. However, at the current price of DOGE, as well as a 100-1000-fold reduction in fees, the payment for “dusty” transactions will be the same as a year ago, Lumin said. At the time, DOGE was trading at $ 0.00247.
“Even if the DOGE cryptocurrency is not as serious as a heart attack, the developers take it seriously. We understand that the economy of several billion dollars depends on our decisions, so it is important to make the right choice, ”said Lumin.
Recently, Cardano founder Charles Hoskinson stated that Dogecoin has potential, but the project needs some fixes. In recent months, DOGE has been showing high volatility. Hoskinson believes it will take years for developers to develop DOGE as a reliable crypto asset for payments.
Not everyone believes in the future of the meme cryptocurrency. Recently, the President of the Federal Reserve Bank (FRB) of the state of Minneapolis called Dogecoin a pyramid scheme.
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