- Litecoin founder Charlie Lee has suggested that Litecoin mining pools and miners donate 1% of their block mining rewards to the Litecoin Foundation.
- The mining reward for a block validation sits at 12.5 LTC, and 1% of that reward would account for just 0.124 LTC ($6.62).
- A donation from every miner or mining pool in the Litecoin network would result in $1.5 million in donations to these projects.
Litecoin founder Charlie Lee has suggested that Litecoin mining pools and miners donate 1% of their block mining rewards to the Litecoin Foundation, Litcoin.com, The Lite School, or other Litecoin projects.
1/ I think a better way to fund development is mining pools voluntarily donate a portion of the block reward. 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!— Charlie Lee [LTC⚡] (@SatoshiLite) January 24, 2020
Currently, the mining reward for a block validation sits at 12.5 LTC, and 1% of that reward would account for just 0.124 LTC ($6.62). Such a donation from every miner or mining pool in the Litecoin network would result in $1.5 million in donations to these projects.
Lee’s suggestion comes right after the BCH mining pool, BTC.TOP CEO, Jiang Zhuoer proposed issuing a mandatory 12.5% cut from BCH mining rewards to fund the Bitcoin Cash ecosystem.
New Foundation-Funding Method
Driving the much-needed cash towards the projects that work for the betterment of the same technology that enables the respective cryptocurrency is a positive change that will change the lives of the developers behind the innovations and the currency in general.
Lee has taken up this idea and hopes that instead of mandating a cut from the rewards, it would be more lenient to allow miners/mining pools to voluntarily donate to projects in the Litecoin ecosystem that they support. This way, the developers of the respective projects can devote more of their time and be assured of a steady flow of income for their livelihood.
Much better than trying to force it at the protocol level. Plus it's opt-in. Let's do it!— The Lite School ⚡️ (@theliteschool) January 24, 2020
The Lite School replied to Lee’s tweet saying that voluntary donations should have an expiry (preferably 2-3 years), and there should be a budget and a revenue model that keeps this funding self-sustainable. Funding to a cryptocurrency ecosystem developers is an essential aspect that gets ignored most of the time.
The backbone to most of the digital currencies is built on open-source tools, or by developers who work on them in their spare time. Helping them achieve a steady income through a consistent flow of funds and building on the tools that drive the cryptocurrency is significant for long term success.