Tesla CEO Elon Musk has tweeted out support for a proposal that would dramatically reduce the transaction fees on the network of the meme-inspired cryptocurrency Dogecoin, from a recommended 1 DOGE fee to 0.01.
In a tweet, Musk claimed that it is “important to support” a proposal brought forth by Dogecoin developer Patrick Lodder to reduce the cryptocurrency’s transaction fees in order for it to remain competitive.
According to Lodder the current recommended transaction fee of 1 DOGE has “become steep for the perceived value of transaction dogecoin” and is “disincentivizing on-chain transactions unnecessarily.” While transacting on the cryptocurrency should be cheaper than on Bitcoin or Litecoin, it can now at times be more expensive.
This, the developer added, is causing people to keep their DOGE tokens on centralized trading platforms longer instead of moving them to a wallet they control because “the perceived value loss of transferring DOGE to a secure wallet is (too) high.” He wrote:
Where transacting DOGE used to be 10x cheaper than transacting LTC, it is, as of writing, nearly 5x more expensive. Therefore, it makes sense to reduce fees by at least 50x to stay competitive.
The value of Dogecoin has exploded over the past year after several celebrities started tweeting about it. Musk, Kiss singer Gene Simmons, billionaire Mark Cuban, Snoop Dogg, and others have over time tweeted jokes about DOGE, fuelling its growth.
Dogecoin was originally created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. While its value used to be well below $0.01, it traded at $0.74 earlier this year before crashing to $0.24.
Last month, as reported, a widely followed pseudonymous cryptocurrency analyst and bitcoin bull has predicted that the price of the meme-inspired cryptocurrency is “programmed” to plunge to $0.05v and that even Tesla CEO Elon Musk would be unable to save it.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.