Litecoin (LTC) founder Charlie Lee proposed mining pool donations as a brand new funding methodology for cryptocurrency growth.
“I believe a greater strategy to fund growth is mining swimming pools voluntarily donate a portion of the block reward,” Lee mentioned in a tweet on Jan. 24, including:
“How about Litecoin swimming pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If each miner/pool does this, it quantities to about $1.5MM donation per yr!”
With 1% donated on a constant foundation, Lee’s recommended resolution would supply sufficient funding for Litecoin completely going ahead, Lee confirmed to Cointelegraph.
He defined:
“At present LTC value, 1% of block rewards is about 7x Litecoin Basis’s yearly bills. Even when a small p.c of miners are beneficiant sufficient to donate, the inspiration would have the ability to put it to good use by funding builders to work on Litecoin Core, Mimble Wimble, LiteWallet, LN pockets, internet hosting the yearly Litecoin Summit, and pushing for adoption of Litecoin by retailers and customers.”
Lee additionally confirmed such donations are voluntary, including, “It wouldn’t be proper if it wasn’t voluntary.”
Funding points
Garnering sufficient capital to run and function a enterprise could be tough. The state of affairs turns into extra complicated when the enterprise or mission goals for decentralization.
Rumors circulated in late 2019 concerning the Litecoin Basis’s potential chapter, which Lee denied in an Oct. 13 tweet. “Do not hearken to silly fud and lies,” Lee mentioned. “We come up with the money for to final 2 years.”
Lee’s 1% voluntary donation proposal comes after Bitcoin Money (BCH) proponents Roger Ver and Jihan Wu recommended an “infrastructure funding plan,” requiring miners to pay 12.5% of block rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24.
New ideas
In response to 51% assault issues, Dogecoin merged its mining with Litecoin in 2014, enabling simultaneous mining of the 2 belongings. Notably, this joint Litecoin and Dogecoin mining impacts Lee’s new mining pool donation idea.
“At the moment with merged mining of Dogecoin and different Scrypt cash, miners make 105%+ of block rewards,” Lee famous in a second tweet. “So 1% is a fairly small quantity to present again in the direction of funding a public good.”
Lastly, Lee additionally toyed with the idea of miners selecting which Litecoin mission their funds will go towards, asking the group for his or her opinions on his concepts as a complete.
“It is essential that miners can select to help different Litecoin organizations as effectively,” he instructed Cointelegraph. “Miners ought to donate to the organizations that need to assist out.”
