[ad_1]
Litecoin (LTC) founder Charlie Lee has proposed mining pool donations as a new funding method for cryptocurrency development.
“I think a better way to fund development is for mining pools to voluntarily donate a portion of the block reward,” Lee said in a statement. tweet on January 24, adding:
“How about Litecoin pools that donate 1% (0.125 LTC) of the rewards in bulk to @LTCFoundation? If every miner / pool does, that equates to a donation of around $ 1.5 million a year!
With 1% donated on an ongoing basis, Lee’s suggested solution would provide sufficient funds for Litecoin permanently in the future, Lee confirmed to Cointelegraph.
He explained:
“At the current LTC price, 1% of the block premiums is approximately 7 times the annual expenses of the Litecoin Foundation. Even if a small percentage of miners were 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 annual Litecoin Summit and pushing for adoption of Litecoin by merchants and users “.
Lee also confirmed that such donations are voluntary, adding, “It wouldn’t be fair if it weren’t voluntary.”
Financing problems
Getting enough capital to run and run a business can be difficult. The situation becomes more complicated when the company or project aims at decentralization.
Rumors circulated in late 2019 regarding the potential bankruptcy of the Litecoin Foundation, which Lee denied on an Oct. 13. tweet. “Don’t listen to stupid nonsense and lies,” Lee said. “We have enough money to last 2 years.”
Lee’s proposed 1% voluntary donation comes after Roger Ver and Jihan Wu, supporters of Bitcoin Cash (BCH), suggested an “infrastructure financing plan,” which requires miners to pay 12.5%. of bulk rewards to an operation in Hong Kong, Cointelegraph reported Jan.24.
New concepts
In response to 51% attack concerns, Dogecoin merged its mining with Litecoin in 2014, allowing for simultaneous mining of the two assets. Notably, this joint mining of Litecoin and Dogecoin affects Lee’s new mining pool donation concept.
“Currently with the combined mining of Dogecoin and other Scrypt coins, miners earn 105% + of the bulk rewards,” noted Lee in a second. tweet. “So 1% is a reasonably small amount to pay back to finance a public good.”
Finally, Lee too toyed with the idea of miners choosing which Litecoin project their funds will go to, asking the community for their views on their ideas as a whole.
“It is important that miners can choose to support other Litecoin organizations as well,” he told Cointelegraph. “Miners should donate to organizations that want to help out.”
[ad_2]Source link
