Another day, another tweet from Elon Musk. The billionaire has had no qualms about his continued support for the ‘meme’ cryptocurrency, and as such, he is now supporting the idea of implementing some key changes that have been proposed for Dogecoin (DOGE).
Elon Musk is no stranger to controversy, with his rejection of Bitcoin (BTC) in favour of DOGE coming as both a bit of a shock and a source of consistent resentment for many in the crypto community. His tweets are often sporadic in nature and have been observed to shift the direction of the entire crypto market in the past. Now, the billionaire provided his support for the aforementioned changes, which are set to potentially redesign the entire software architecture of the altcoin and change Dogecoin’s token economics.
DOGE could gain back some momentum
Dogecoin had become the story of 2021, not just in the crypto sphere but also in a general sense. Many people who were unfamiliar with the complexities of cryptocurrency had at least heard about the Dogecoin craze, which was largely helped by the hype surrounding the meme based on the same name. More importantly, however, DOGE’s price had skyrocketed this year, turning numerous investors who had bought the altcoin for pennies into millionaires. This led to increased FOMO and lured in various other potential investors who all wanted a piece of the action. However, this resulted in more losses than anything else for most due to these new investors having little to no understanding of how cryptocurrencies actually function.
Nevertheless, Dogecoin does have the potential to transform itself into a legitimate utility coin following the huge influx of capitalization in 2021. Right now, it cannot be said with absolute certainty whether Musk’s continued support will be beneficial or detrimental for the ‘joke’ cryptocurrency’s holders, so we will have to wait and see.
Patrick Lodder, the core developer for Dogecoin, stated on Reddit this past Sunday that some updates have now been proposed. These include the reduction of the average fees by a hundred-fold for various standard transactions which occur on Dogecoin’s blockchain. Furthermore, it was also suggested that full control be split between the node operators and miners for all aspects of the fees. Moreover, the altcoin would be less dependent on core development. Lastly, a functional free transaction space will be brought back, which would offer incentives for the purpose of maintaining the network’s overall health.
Lower fees are definitely the main attraction, though, and Elon himself had tweeted that it is vital to support these changes. Cardano’s founder, Charles Hoskinson, had also recently said that he is happy that Dogecoin is being developed with a bit more seriousness, with or without Elon’s support.