Elon Musk, the at times controversial SpaceX founder and stop-and-go crypto backer, expressed his support for a number of key updates to the Dogecoin (DOGE) blockchain late Sunday. The changes would drastically reshape the software architecture of the cryptocurrency and change its token economy.
The popular “joke crypto” appears to be preparing to become a serious utility coin after a massive inflow of capital earlier this year. It remains to be seen whether the updates Musk supports would be good or bad for the coin holders, should they be adopted.
In a Reddit thread on Sunday, Dogecoin Core developer Patrick Lodder summarized the proposed updates:
“This proposal to all Dogecoin stakeholders suggests reducing the average fees for standard transactions in the Dogecoin chain by 100 times, sharing complete control of all aspects of fees between miners and node operators, reliance on core development less and bring back a functional (small) free version of transaction space that provides incentives to keep the network intact. “
Lower fees can attract more users who want to use Dogecoin for online cash checks, wire transfers, and merchant payment processing. It can also reduce the incentive for miners to maintain, validate, update, and secure the Doge blockchain.
Elon Musk told Dogecoin Core developer Ross Nicoll in a tweet on Sunday evening that these changes were “important for support”.
Important to support
– Elon Musk (@elonmusk) June 28, 2021
Charles Hoskinson – who co-founded Ethereum with Vitalik Buterin and founded the competing blockchain Cardano – recently said on a podcast that he’s just glad that Musk is stirring the pot for Dogecoin, even if he’s just fooling on it.
Hoskinson said he hoped the attention will attract “real developers” to come in and “start working on Doge to create a utility and utility for it so that it has at least a floor and doesn’t collapse”.
Dogecoin received a price spike through Elon Musk’s tweet, rising from $ 0.242 (USD) to as high as $ 0.266, before hovering below major resistance around the $ 0.260 level at the time of publication.
Musk’s ability to move markets with the tap of the tweet button led a former Bitrefill manager to joke, “Say something, Elon Musk!” Last week with the DOGE price for six consecutive weeks. That was after the peak in May along with the rest of the cryptocurrency market, though Dogecoin outshone most of its competition during the recent (and arguably sustained) bull run.