Dogecoin Sees Uptick After Elon Musk Tweet Supporting Fee-Change Proposal

The Tesla founder tweeted in response to a proposal to reduce the fee.

AccessTimeIconJun 28, 2021 at 10:00 a.m. UTC
Updated Sep 14, 2021 at 1:17 p.m. UTC

Elon Musk's tweeted support for a proposal to change dogecoin's fee structure was followed by an uptick in the price of the meme-based crypto.

  • The Tesla founder said it is 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," Lodder wrote on GitHub, a website where software developers share codes, development tools and ideas.
  • Lodder argues that whereas DOGE transactions used to be 10 times cheaper than litecoin's, they are 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.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.