Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said in the early hours of Monday that it was “important to support” a Dogecoin (CRYPTO: DOGE) fee change proposal.
What Happened: Musk made his comments on Twitter in response to a tweet by Dogecoin developer Ross Nicoll containing the fee change proposal.
Important to support
— Elon Musk (@elonmusk) June 28, 2021
Dogecoin co-creator Billy Markus also reacted to the proposal with two supportive fire emojis.
See Also: How To Buy Dogecoin (DOGE)
The proposal noted that while DOGE used to be ten times cheaper than transacting on Litecoin (CRYPTO: LTC), it is now nearly five times more expensive. This high fee has come around due to “all time high exchange rates against both USD and [Bitcoin (CRYPTO: BTC)],” as per the proposal.
“It makes sense to reduce fees by at least 50x to stay competitive,” the proposal noted.
Why It Matters: The proposal advocates for the revision of the default fee rate to 0.01 DOGE or $0.00255 at press time when DOGE traded 4.83% higher over 24 hours at $0.255.
Historically, the fee stood at 1 DOGE per kilobyte with a minimum output size recommended to be 1 DOGE to limit spam; any output smaller than that is penalized with an additional 1 DOGE fee, as per the proposal.
The average Dogecoin transaction fee stands at 2.02 DOGE or ($0.492) according to BitInfoCharts, at press time.
Last month, Musk had disclosed that he was working with Dogecoin developers to “improve system transaction efficiency” of the cryptocurrency.
Musk had also called upon his social media following to submit ideas that could lead to improvements in the Shiba Inu-themed cryptocurrency last month.