Litecoin’s development team recently announced that the next Litecoin Core upgrade will reduce fees to such a low price that it would make this cryptocurrency one of the cheapest transaction options in the world.
Litecoin Core 0.17 has as its main feature a 10x reduction of its fees. With this, moving money through the Litecoin blockchain will have costs of less than 1 cent.
According to the developers, the idea behind this decision is that the popular cryptocurrency will again have the same transaction costs as it had two years ago, long before the bullish streak that increased the value of the token. Litecoin’s team elaborated on this idea on its official blog:
“The upcoming release of Litecoin Core 0.17 is about to lower network fees by a factor of 10. 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.”
Core Lead Developer Adrian Gallagher was quite bullish about the market in general, commenting that price reduction can help not only to increase the adoption of Litecoin (LTC) but also to promote a more efficient way of adapting the value of fees:
“To encourage more adoption and usage of Litecoin, I think lowering the fees are a 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 re-actively.”
To date, no official announcements have been made about a specific launch date. Litecoin (LTC) is ranked 7th in the global market cap, with a price of 52 dollars per token and a total capitalization of 3.1 B Dollars.