It’s been a little while since the self-proclaimed marketer of the Dogecoin token, Elon Musk, gave a little nod to his favorite Shiba Inu. This was done this Monday with a tweet in support of the Dogecoin developers. In the wake of this, DOGE has seen a small price increase. A classic !
A network that will get a makeover
After the Dogecar crash at NASCAR last week, DOGE holders were hoping for some good news to cheer them up. Lucky for them, Elon Musk tweeted his support for the announcement of a series of major updates to the Dogecoin blockchain. The changes would radically rethink the cryptocurrency’s software architecture and alter its fee management.
Indeed, the world’s most popular “crypto-currency” seems to be finally gearing up to become a real serious utility token, after a massive influx of capitalization earlier this year. It remains to be seen whether the Elon Musk-backed updates would be good or bad for the token’s holders, should they finally be adopted
In a Reddit thread, Patrick Lodder, one of Dogecoin’s “developers” summarized the proposed updates:
“This proposed update on Dogecoin suggests reducing the average fee by 100 times for standard transactions on the Dogecoin blockchain, dividing total control over all aspects of fees between miners and node operators, relying less on core development, and putting back a transaction space that incentivizes keeping the network healthy. “
Lower fees may attract more users looking to use Dogecoin for online payments and value transfers. But it may also provide less incentive for miners to maintain, validate, update and secure the Doge blockchain.
The sometimes controversial SpaceX founder and crypto fan had responded Sunday night, to Dogecoin Core developer Ross Nicoll, that these changes were “important to support” :
Is the joke over?
Charles Hoskinson – who co-founded Ethereum with Vitalik Buterin and founded rival blockchain Cardano – said in a recent podcast that he’s just happy Musk is talking about Dogecoin, even when he’s just goofing around.
Hoskinson hopes the attention would encourage “real developers” to come in and “start working on DOGE to create a use and utility for it, so that it at least has a floor value that keeps it from collapsing.”
Dogecoin saw quite a price spike following the Tesla CEO’s tweet, rising from $0.242 to $0.266, before settling below key resistance around the $0.267 level at the time of writing.
Elon Musk’s ability to move heaven and earth on the markets with a simple tweet annoys many in the cryptosphere. It should be noted that before the Tesla CEO’s intervention, Dogecoin had been down for 6 consecutive weeks. But while the crypto joke is often pointed at, it must be acknowledged that Dogecoin has also made its holders millionaires.
