Doge’s core development team has discussed
anywhere between 0.1 and 0.001 Doge, with the goal of progressively lowering fees over time.
According to Nicoll, Doge developers need to convince block miners to accept lower transaction fees.
Miners, who receive rewards from each transaction they process, will only agree if they can expect to offset lower transaction costs by processing more transactions. This requires increased adoption.
Like Bitcoin, Dogecoin is decentralized. Changes to its code are only be implemented once a consensus of miners and node operators agree to them.
Nicoll estimated developers need to convince “at least two-thirds” of miners and node operators before changes could come into effect.
If transaction fees are too high, owners are incentivized to save Doge rather than use it.
To become a globally preferred medium of exchange for small transactions, Doge must cheap enough for consumers and businesses to circulate it freely without worrying about the cost.
Lowering transaction fees could kickstart a virtuous cycle that increases adoption. As the number of transactions increase, developers would have even stronger case for further fee reductions.
Doge already has the best brand in the crypto universe. Becoming more efficient will strengthen its case as a global medium of exchange.