Follow BCH, Litecoin's founder suggests that miners voluntarily donate 1% of block rewards

According to Cointelegraph reported on January 26, Litecoin founder Charlie Lee proposes to use mining pool donations as a new way to finance cryptocurrency development.

litecoin-3344894_960_720 (Image source: pixabay )

On January 24, Charlie tweeted:

Voluntary donation of some block rewards by mining pools should be a good way to help foundations finance. What about letting the Litecoin mining pool donate 1% (0.125 LTC) of block rewards to @LTCFoundation If every miner / mine pool did so, they would donate the equivalent of $ 1.5 million per year!

Lee confirmed that on the basis of a 1% donation, the solution proposed by Lee will provide sufficient funds for the long-term development of Litecoin.

He stated:

Using the current Litecoin price as a reference, the 1% block reward is seven times the annual expenditure of the Litecoin Foundation. Even if a small mining pool can generously donate some of its block rewards, the foundation can make good use of these funds to help support developers' work on Litecoin Core, Mimble Wimble, LiteWallet, Lightning Web Wallet, and host Litecoin. The annual summit promotes the adoption of Litecoin by merchants and users.

He also confirmed that these contributions should be voluntary and added:

The practice of involuntary donations is wrong.

funding problem

Getting enough money to run a business is difficult. The situation becomes more complicated when the goals of the business or project are scattered.

Rumors of the Litecoin Foundation's possible bankruptcy were circulating at the end of 2019, but Lee denied the rumor on Twitter on October 13:

Don't listen to those rumors and lies, we have enough money to maintain the foundation for at least two years.

Before Lee voluntarily donated a 1% block reward to the Litecoin Foundation, Cointelegraph reported on January 24 that Bitcoin Cash (BCH) backers Roger Ver and Wu Jihan proposed an "infrastructure financing plan" , Requiring miners to pay 12.5% ​​of the block reward for BCH's operation in Hong Kong.

new concept

In response to a 51% attack, Dogecoin merged its mining business with Litecoin in 2014, achieving the goal of simultaneously mining two cryptocurrency assets. It is worth noting that the combined mining of Litecoin and Dogecoin has affected Lee's new mining pool donation concept.

Lee wrote in another tweet.

At present, with the rise of the joint mining of Dogecoin and other Scrypt cryptocurrencies, miners have received more than 105% of block rewards, so it is quite rare to use 1% of block rewards to fund a public good.

Finally, Lee is also considering letting miners choose which Litecoin project their funds will be used to solicit the community's overall views on their ideas.

He told Cointelegraph:

It is very important that miners can choose to support other Litecoin organizations. Miners should choose which organization to contribute to.