Elon Musk is still behind the Dogecoin
Elon Musk is back in the crypto game. If it recently looked like he wanted to distance himself from Dogecoin, a recent tweet shows that he still sees potential in the meme coin.
Tesla boss Elon Musk supports a proposal that wants to introduce a new fee structure and policy for Dogecoin (DOGE). Dogecoin core developer Patrick Lodder had that submitted.
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Drastic fee cut should make Dogecoin livelier
The proposal entitled “Fee Policy Change Proposal # 2347” aims to reduce the current Dogecoin transaction fees by at least a factor of 50. As they are now, they are relatively higher than the fees for Bitcoin and Litecoin.
“From the beginning it was the aim of Dogecoin to be accessible to everyone, but with the current exchange rates the transaction fees for DOGE are kept artificially higher than for Bitcoin and Litecoin, regardless of their fee economy,” said Lodder. Competitiveness can only be restored through a drastic reduction.
Another problem caused by the high fees is the decline in on-chain transactions, according to Lodder. As a result, the transaction volume is kept artificially low and investors would only hold the Dogecoin, but not use it. There is also a trend that people are holding the coins on centralized platforms because the perceived loss of value when transferring DOGE to a secure wallet appears too high.
Elon Musk: Important to support
With the new proposal, Lodder aims to make four critical changes to the Dogecoin network: “This proposal to all Dogecoin stakeholders proposes to reduce the average fees for standard transactions on the Dogecoin chain by 100 times, with full control over all aspects of dividing the fees between miners and node operators, relying less on core development and bringing back a functional (small) free transaction space that provides an incentive to keep the network healthy. “
Important to support
– Elon Musk (@elonmusk) June 28, 2021
Elon Musk likes that. “Important to support”, he announced on Twitter, so “important to support.” The tweet again used the Dogecoin. The meme coin has made its way up again, albeit much more slowly than we have seen in recent months.
I bought dogecoin after 8 years of vowing never to buy crypto again, an hour ago.
I have checked the price 7 times so far since then. I was up 10% and now it’s back to up 3%.
Anyway, this seems healthy.
– Shibetoshi Nakamoto (@ BillyM2k) June 22, 2021
In addition to Elon Musk – even more amazing – the Dogecoin inventor Billy Marcus is back on board. A few days ago he bought Dogecoin again for the first time after eight years of crypto abstinence. Obviously something is in motion.
