Tesla's Elon Musk recently confirmed in a tweet that he favors Dogecoin's 50x charge discount, saying that it has to be fully supported.
Dogecoin has continued to increase in worth over the last 12 months, but it remains one of the most controversial cryptocurrencies in the crypto market.
Dogecoin's Fee Structure
Dogecoin builders initially set a fee structure that centered on lowering its on-chain spam.
Technically, the system revolved around 1 DOGE per kilobyte charge, offering low-cost transactions. However, it is also balanced to sufficiently stop massive sets of spam.
Additionally, builders needed a minimal output of 1DOGE to discourage community spammers from spamming the system continuously. Crypto News reported that if an outcome is less than 1 DOGE, it will penalize an extra charge of 1 DOGE.
Nevertheless, the fee structure was not implemented in the crypto community other than default within Dogecoin's software program.
But in 2018, Dogecoin's charge coverage started to get implemented during the relay code stage of the meme coin's nodes. The immediate result was an investigation of multiple non-compliant transactions for the default coverage.
Dogecoin's 50x Discount in Charges.
Crypto News reported that the meme coin's developer, Ross Nichol, publicly confirmed that he plans to reform Dogecoin's charge coverage.
As the said meme coin continues to reach new heights, its community charges also required additional fees. As a result, a pointless dis-incentivization of its on-chain transactions took place.
To combat the downside, the cryptocurrency plans to charge coverage modification. Dogecoin proposed that users may now see at least 50x charge discounts.
The discount that Dogecoin offers could additionally assist in its solidification as a payment cryptocurrency.
Dogecoin's proposed modifications aim to provide choice energy to miners as a substitute for the ongoing relay community. It contained additional perks, such as incorporating a higher configurability for fee-related parameters and improving sovereignty within specific person node operators.
Tesla's Elon Musk Approves Dogecoin's Proposal
Tesla CEO Elon Musk is seen as the unofficial "DogeFather" of the internet because he is fascinated with Dogecoin. He recently confirmed his approval of the cryptocurrency's proposed discount charge, saying that it is essential to help such plans.
Important to support— Elon Musk (@elonmusk) June 28, 2021
Other than Musk, many social media comments voiced their approval of the meme coin's proposal, which means that it would not be hard to implement the 50x discount in charges.
Is Dogecoin's Proposal Effective?
On the other hand, it is a known fact that the Lightning Community can afford fast and low-cost Bitcoin transactions. In addition, there is already a plethora of other low-cost to transact tokens available in the crypto market.
Crypto News is quite hesitant about Dogecoin's proposal because if others are already offering low-cost fees, would there still be an urge for food to make Dogecoin's 50x discount in charges a reality?
However, we would only find out its efficacy once it launches.
The DOGE Crypto Community
Compared to other tokens, the Dogecoin crypto community's standard charges are comparatively low. As of June 29, the common charge available for Dogecoin is $0.49, while Bitcoin's is $7.12, and Ethereum's is at $4.17.
But still, devs would require decreased charges to continue encouraging extra free-flowing transactions - with Dogecoin's outflow from exchanges.
This article is owned by Tech Times
Written by Fran Sanders