Elon Musk is Ready to Support Proposed Dogecoin Changes

On Sunday, billionaire Elon Musk tweeted his support for a set of main updates to the dogecoin blockchain. He told his followers on Twitter that it is “important to support” the proposal put forth by core dogecoin developer Patrick Lodder.

The changes would drastically redesign the cryptocurrency’s software architecture as well as change its tokenomics. Elon Musk began talking about improving Dogecoin last month. He tweeted that he was working with cryptocurrency developers to improve system transaction efficiency. Musk also urged anyone wanting to help develop this cryptocurrency to submit ideas on Github. He also mentioned another option. People can present their ideas on the dogecoin Reddit forum.

The popular “joke crypto” got a price bump from Musk’s tweet. Its price rose from $0.242 to as high as $0.266. His tweets changed the price of this promising cryptocurrency in the past as well.

The cryptocurrency which gained popularity several months ago appears to be gearing up to become a serious utility coin after a huge influx of capitalization earlier this year. At the moment, it is hard to say whether the updates Elon Musk supports would be good or bad for the coin’s holders should they be adopted.

Patrick Lodder summarized the proposed updates in a Reddit thread on Sunday. This proposal to all dogecoin stakeholders suggests cutting average fees 100x for transactions on the dogecoin coin. Another proposed change is to split full control over all aspects of fees between miners and node operators. This is not the end of the story, as proposed changes include other interesting ideas. One of them is to rely less on core development and another one is to bring back a functional (small) free transaction space that incentivizes keeping the network healthy.

Dogecoin and technical aspects

Lower fees may attract more people looking to use this cryptocurrency for cash checking, remittances, as well as merchant payment settlements online. It may also lower the incentives for cryptocurrency miners to validate, update and secure the dogecoin blockchain.

Charles Hoskinson co-founded ethereum with Vitalik Baturin and founded competing blockchain cardano. Hoskinson talked about Elon Musk’s position regarding dogecoin. Charles Hoskinson is happy that Musk supports this cryptocurrency. He also hopes the attention will prompt real developers to start working on dogecoin to create some use and utility for it.