In spite of the not so promising current market conditions, Litecoin core developers are making moves to reduce the cost of transferring coins on the network (LTC transactional Fee) to the minimum. This feature is expected to take effect in its forthcoming upgrade.
LTC Transactional Fee Reduction
Based on a report coming from a recent release, the developers are looking to have the fee reduced to an average transaction rate of around $0.005.
The core development group for Litecoin, made it known in a recent post that this move to reduce the transaction fee by a factor of ten, was inspired by “the 2017 run-up in the price of Litecoin, when the tx fees regularly reached up to and over $0.10 on average per transaction and peaking at just over $1.”
A spokesperson for the development team, Adrian Gallagher also made a statement that:
“To encourage more adoption and usage of Litecoin, I think lowering the fees are[sic] good thing,”
He further stated that:
“We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins.”
For those interested in the mathematical aspects of how the fees structure on a blockchain network is being calculated, it is important to note that the current market conditions dictate the fees structure. However, developers have a way of setting the fee to stay within a range. For Litecoin, the current LTC transactional fee is set at about 0.001 LTC/ kB. This is recognised as the default fee. The new default fee for the forthcoming upgrade is going to be done automatically.
With news of large numbers of Ethereum coins (ETH) getting moved for extremely low fees, this puts LTC at a competitive disadvantage. As a result of this, the reduction in fees which will be a core significance of the LTC network upgrade is expected to increase the use of LTC as a medium of payment.