Litecoin’s fees will reduce by a factor of 10x after the implementation of Litecoin Core 0.17 upgrade according to the Lead development group.
In a medium post, the developers said that average transaction fees on the network will reduce from Ł0.001 per KB or ~$0.05 which is the current price to Ł0.0001 per KB or ~ $0.005 which was same price level in 2015 when the blocks were relatively empty.
Adrian Gallagher, The lead developer in Litecoin core said:
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.
In the 2017 bull run, Bitcoin fees went as high as $65 and Litecoin peaking at $1. The high fees makes it hard unfeasible for smaller transactions which could hinder adoption. To avoid this from happening in the next bull run Adrian says it is important to lay the foundation now.
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 then re-actively.
The post also talks about the fee market in which miners earn most of their income by the minting of new coins. But as inflation slows down their dependency on the fees will increase.
Charlie Lee had Tweeted about this development back in January:
Litecoin dev update: we are working on the next release of Litecoin Core and will reduce relay fees to 0.01 lite (0.00001 LTC). Should be released soon. The release after this one, we will reduce min fee to 0.1 lite (0.0001 LTC).
I'm also finishing up my fee signaling proposal.
— Charlie Lee [LTC⚡] (@SatoshiLite) January 18, 2018
Litecoin Cheaper than Bitcoin Cash?
According to the data from the past three months, the average transaction fees in Bitcoin Cash ranges from $0.01 to $0.02 depending on the number of transactions. The fees in Litecoin is usually 4 or 5 times higher, but if the fees in the Litecoin network falls tenfold to prices as low as $0.005 then it is cheaper than Bitcoin Cash.
In fact, the LTC Network often operates with a 0.00001 LTC per KB minimal fee set up, but wallets and services are not taking advantage of this. This could change with the upgrade in Litecoin Core.
Litecoin is currently the 7th largest Cryptocurrency with a market cap of $3.1 Billion. At the time of press, the price of 1 LTC is $52.7.
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