It looks like Dogecoin (CCC:DOGE-USD) is eyeing up a potential major change to the way fees and transactions operate on-chain. A proposal released recently, which is gaining a lot of traction among DOGE investors, is one of the most robust fee proposals that the coin has ever seen. Additionally, some think the updates could be a great way for new crypto investors to become familiar with fee structures. The Dogecoin crypto news is causing quite a stir across the asset class.
So, what is this proposal, who is Patrick Lodder, and what does the Dogefather Elon Musk think of this restructuring?
Here’s what you need to know.
Dogecoin Crypto News: What Is the Fee Proposal All About?
- Just after Elon Musk’s sudden swerve to the anti-Bitcoin (CCC:BTC-USD) camp, citing energy use concerns, the billionaire made known his interest in improving Dogecoin’s efficiency. He tweeted about his own efforts to improve transaction efficiency alongside DOGE developers. He has not explicitly commented on the newest proposal yet.
- Patrick Lodder is one of the core developers of Dogecoin. Lodder is authoring and touting this new proposal for cleaning up transaction fees.
- The proposal hopes to build on past implementations meant to curb spam on the blockchain. Fees were initially added to the chain to eliminate spam transactions that would rapidly fill blocks. However, the developers have noticed that a significant portion of transactions are utilizing exploits which subvert the fees.
- Additionally, Dogecoin fees are becoming outdated with the boom of the coin in recent months. Transaction fees have become dramatically more expensive as the exchange rate blossoms.
- These high rates disincentivize users from moving the currency to a secure wallet; rather, most keep their DOGE held in custody accounts on exchanges.
- The proposal highlights a total of five changes for the chain, implemented over the course of three software updates. The changes include lowering minimum relay fees, dust limits and default fee rates. Also, the proposal suggests upping the default block inclusion fee rate and bringing back a limited space free of transactions.
- With all of these changes, Lodder makes clear the end goal is to not just skim out spam transactions, but mainly to lower fees and stay competitive. The team wants to foster a friendly space for new users to learn about digital money. Lower fees are a key entry point.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.