Litecoin (LTC) founder Charlie Lee proposed mining pool donations as a brand new funding methodology for cryptocurrency improvement.
“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!”
With 1% donated on a constant foundation, Lee’s steered resolution would offer sufficient funding for Litecoin completely going ahead, Lee confirmed to Cointelegraph.
“At current LTC price, 1% of block rewards is about 7x Litecoin Foundation’s yearly expenses. Even if a small percent of miners are generous enough to donate, the foundation would be able to put it to good use by funding developers to work on Litecoin Core, Mimble Wimble, LiteWallet, LN wallet, hosting the yearly Litecoin Summit, and pushing for adoption of Litecoin by merchants and users.”
Lee additionally confirmed such donations are voluntary, including, “It wouldn’t be right if it wasn’t voluntary.”
Garnering sufficient capital to run and function a enterprise may be troublesome. The scenario turns into extra difficult when the enterprise or undertaking goals for decentralization.
Rumors circulated in late 2019 concerning the Litecoin Foundation’s potential chapter, which Lee denied in an Oct. 13 tweet. “Don’t listen to stupid fud and lies,” Lee stated. “We have enough money to last 2 years.”
Lee’s 1% voluntary donation proposal comes after Bitcoin Cash (BCH) proponents Roger Ver and Jihan Wu steered an “infrastructure funding plan,” requiring miners to pay 12.5% of block rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24.
In response to 51% assault issues, Dogecoin merged its mining with Litecoin in 2014, enabling simultaneous mining of the 2 property. Notably, this joint Litecoin and Dogecoin mining impacts Lee’s new mining pool donation idea.
“Currently with merged mining of Dogecoin and other Scrypt coins, miners make 105%+ of block rewards,” Lee famous in a second tweet. “So 1% is a reasonably small amount to give back towards funding a public good.”
Finally, Lee additionally toyed with the concept of miners selecting which Litecoin undertaking their funds will go towards, asking the group for his or her opinions on his concepts as a complete.
“It’s important that miners can choose to support other Litecoin organizations as well,” he told Cointelegraph. “Miners should donate to the organizations that want to help out.”