Meme cryptocurrency Dogecoin’s (CRYPTO: DOGE) core developers have released a new software update to prepare the network for future reductions in transaction fees.
What Happened: Dogecoin core developers said on Twitter that the new Dogecoin Core 1.14.4 update is designed to handle programming glitches and also improve performance. The update has been recommended for all Dogecoin users.
Dogecoin 1.14.4 Released – https://t.co/drdeTJYqR4
-Enables Upcoming Fee Reductions
-Improves Synchronization Speed (2.5x in some cases)
-RPC ‘getpeerinfo’ improvements.
-GUI options to add peers and import private keys, and peer traffic visibility
— Dogecoin Developers (@dogecoin_devs) August 21, 2021
See Also: How To Buy Dogecoin (DOGE)
According to core developer Patrick Lodder, the update will help prepare the network for a reduction of the recommended fees by “reducing the default fee requirement 1000x for transaction relay and 100x for mining.”
Dogecoin co-creator Billy Markus, who goes by the username Shibetoshi Nakamoto on Twitter, noted that the new update is the first part of a two-stage update to lower the fee recommendation while a follow-up release will implement the lower fee recommendation.
Fee reduction not instant –
“This realizes the first part of a two-stage update to lower the fee recommendation – a followup release will implement the lower fee recommendation, once the network has adapted to the relay defaults introduced with this version of Dogecoin Core.”
— Shibetoshi Nakamoto (@BillyM2k) August 21, 2021
Why It Matters: The proposal to reduce Dogecoin transaction fee was announced by Dogecoin developer Ross Nicoll in June and won the support of Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk as well as Markus.
The plan advocates for the revision of the default fee rate to 0.01 DOGE. The average Dogecoin transaction fee stands at 2.46 DOGE or ($0.779), according to BitInfoCharts, at press time.
Dogecoin’s year-to-date gains are an impressive 5,467.9%. However, the meme cryptocurrency is down almost 57.1% from its all-time high of $0.7376 reached in May and is now in seventh place in terms of market capitalization, as per CoinMarketCap data.
Lower transaction fees would enable increased adoption of the Shiba Inu-themed coin by cryptocurrency users and help keep the network competitive with other cryptocurrencies like Litecoin (CRYPTO: LTC) and apex cryptocurrency Bitcoin (CRYPTO: BTC).
Price Action: Dogecoin is up more than 1% during the last 24 hours, trading at $0.3179 at press time.