Dogecoin fee change proposal appears to have widespread support | Fees could be reduced by up to 100x | Elon Musk signals support
In a github post made June 27th 2021, Patrick Lodder, one of the Doge core developers, submitted a Dogecoin fee change proposal that could reduce transaction costs by up to 100x for standard transactions, with the news being met on Reddit with generally overwhelmingly positive support.
The proposal, number #2347, states that the new fee structure and policy for Dogecoin Core would be “gradually deployed to the network over multiple software releases”, and goes on to explain both the history and rationale for the changes.
The proposed Dogecoin fee changes include lowering the minimal relay fee to 0.001 DOGE, with dust limits, default fee rate and default block inclusion rates to 0.01 DOGE. Furthermore, the paper proposes the return of the functional free-transaction space.
Lodder then went on Reddit to post a TL:DR of his Github post outlining the thinking.
This proposal to all Dogecoin stakeholders suggests 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.Patrick Lodder, writing on Reddit, June 27 2021.
Tesla boss Elon Musk also signalled his support with just 3 words on his Twitter account. Musk, who has been credited with being one of the biggest influencers on the year in the crypto space simply posted the words “Important to support” in response to a general link to the Dogecoin fee change proposal.
Lodder also posted alternative fee recommendations in his Github post too, saying a reduction in recommended fees to 40x instead of 100x would also have a positive effect on pricing.
As shown below, the alternative fee calculation without rounding the transaction size up to the nearest multiple of 1kb, would make simple, standard transactions cheaper than with the rounding in place, yet make spam transactions linearly more expensive than with a rounded-up fee.
This is even more good news for DOGE, which earlier this month was listed on Coinbase in a move which saw a significant increase in the price. At the time of writing, DOGE is up over 6%, hovering around 25 cents, and with a market cap of over 33.4 Billion USD.