Litecoin fees are about to get reduced 10 times with the new Litecoin Core launch due to a surge in its fees after Litecoin hit its all-time high (ATH) at $320.
Litecoin to Lower Fees to “half a cent” with the Next Litecoin Core Release
The upcoming launch of Litecoin Core 0.17 will reduce the network fees about 10 times. According to the latest medium release:
“The average transaction fee as it stands on the network is Ł0.001 per KB or ~$0.05. With the announced changes that will soon become Ł0.0001 per KB or ~ $0.005, half a cent and back at 2015 levels.”
The Litecoin fees have been constantly on a dropping down with a few exceptions on the way as shown in the chart below:
This move has been taken by the core developers in response to the constant hike in the fees to over $0.10 on average per transaction and then further jumping just above $1 as the Litecoin price peaked at $320. Currently, at about $53, Litecoin is down by 85 percent from its all-time high (ATH) in January beginning.
— Litecoin.Com (@LitecoinDotCom) October 19, 2018
Adrian Gallagher, the core lead developer further shared about this development:
“To encourage more adoption and usage of Litecoin, I think lowering the fees are good thing. We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins. Technically people can already adjust their fees right now to the one above because of the more relaxed min relay/dust relay fee. I also don’t think it will be too much longer before this bear market is over (3–6 months) so it will lay down the foundation for a fee rate which we can grow into proactively rather than reactively.”
The Litecoin community really pumped up about this as one enthusiast commented in part, “As if they weren’t already low enough!”
While another one stated,
“They’re practically non existent as it stands. I transferred some yesterday and was impressed with the speed and price. Great stuff.”
As for what determines this transaction fees, it is based on “the space used in a block user pay for the space required to include their transaction.” The thing is larger the transaction data, the larger the fee. It further means, it doesn’t matter how much is sent hence a $1 million transaction can involve a payment of $0.01 while sending $100 can cost $0.10.
A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com