HomeTodays NewsLitecoin [LTC] transaction fees fall by a factor of 10 after the launch of Litecoin Core v0.17.1
Litecoin [LTC] transaction fees fall by a factor of 10 after the launch of Litecoin Core v0.17.1
May 9, 2019
Litecoin [LTC] has been creating headlines for being one of the best performing altcoins in 2019. While the community has praised the comeback of the “bitcoin spinoff,” LTC made headlines again after the launch of Litecoin Core v0.17.1. A blog post highlighted that the update was focused on “user interface changes, a new wallet format, extended privacy features, and a significant network fee policy change.”
The new network fee policy is focused on reducing the minimum transaction cost by a factor of 10, reducing the transaction cost from 0.001 LTC/kb to 0.0001 LTC/kb. While Charlie Lee’s coin hasn’t been able to dominate the market, several experts have speculated that this development will allow LTC to capture a greater market share, as well as go on a wider adoption spree. Litecoin thus expects traders to be more willing to invest in LTC, especially when compared to bitcoin forks like Bitcoin Cash [BCH] and Bitcoin SV [BSV].
Adrian Gallagher, a prominent Litecoin Core developer, supported the decision by saying,
“The rationale was that the team and I decided that we wanted to make transaction fees cheaper for everyday use. Miners will still earn coins from the block reward, despite a reduction in the fees they collect. There always needs to be a balancing of fees, otherwise the network is at risk of getting spammed. At the same time, we also want to make it cheap enough so users don’t pay anything excessive for regular transactions or for participation in the Lightning Network. We hope to spur more adoption as time goes by.”
Further, the LTC ecosystem is also anticipating a halving in August 2019, a halving which will decrease the mining reward from 25 to 12.5 coins. The halving is expected to increase the coin’s trading value.