Elon Musk backs Dogecoin developers’ proposal to cut fees

Elon Musk backed Dogecoin (DOGE) developer Patrik Lodder’s proposal to cut the network’s transaction fees and boost its decentralisation.

Important to support

— Elon Musk (@elonmusk) June 28, 2021

«This proposal for all Dogecoin stakeholders envisions reducing the fee for standard transactions in the network by 100 times, distributing full control over all aspects of fees between miners and node operators, reducing reliance on core developers, and restoring a functional (small) transaction space that incentivises keeping the network operational», Lodder explained in a thread on Reddit.

According to him, due to the rise in the cryptocurrency’s value relative to Bitcoin and the US dollar in 2021, the recommended 1 DOGE fee unduly constrains transactions in the network.

«This situation forces people to hold their DOGE longer on centralized platforms, because the perceived loss of value when transferring tokens to a secure wallet is too high», the developer explained.

Earlier, Musk stated that Dogecoin could “easily” beat Bitcoin if it increases the speed of block production and their size by 10x, and reduces fees by 100x.

Back then, Ethereum co-founder Vitalik Buterin criticised the billionaire’s plan. He noted that drastically increasing the blockchain’s scalability and throughput, without depriving it of fundamental properties such as decentralisation, is an extremely difficult task.

Against the backdrop of Lodder’s proposal and Musk’s reaction, the cryptocurrency rose 5.6% in 24 hours, according to CoinGecko. At the time of writing, DOGE traded at $0.26.

Prices of meme cryptocurrencies are highly sensitive to Musk’s tweets. On Friday, June 25, the billionaire wrote that he would name his Shiba Inu dog Floki. The price of Shiba Inu (SHIB) rose by 17%.

My Shiba Inu will be named Floki

— Elon Musk (@elonmusk) June 25, 2021

According to CoinGecko, SHIB rose 9.3% over the past 24 hours. At the time of writing, the cryptocurrency was trading at $0.00000802.

On May 8, Musk appeared as a guest-host on Saturday Night Live and asked to be called “dog father”. Last week he hinted that Bitcoin maximalists overreact to opinions that run counter to their own.

That’s not funny! – Bitcoin maxis

— Elon Musk (@elonmusk) June 25, 2021

As previously noted, CoinSwap DeFi founder Erik Nurm said that Elon Musk’s ability to influence the crypto market with his tweets poses a danger to retail investors.

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