Elon Musk’s tweeted support for a proposal to change the fee structure of dogecoin was followed by an uptick in the price of the meme-based crypto.
- The Tesla founder said it was important to support a reduction in DOGE transaction fees.
- His tweet was in response to a proposal by dogecoin developer Patrick Lodder to reduce fees to 0.01 DOGE in order for the crypto to remain competitive.
- The current recommended fee of 1 DOGE has “become steep for the perceived value of transacting dogecoin,” and is “disincentivizing on-chain transactions unnecessarily,” according to Lodder.
- Lodder argues that where transacting in DOGE used to be 10 times cheaper than litecoin, it is now nearly five times more expensive.
- DOGE’s price subsequently rallied to above $0.26. It has since pulled back, sitting at $0.256 at press time.
Source: Coindesk
