Charlie Lee, Litecoin’s founder proposed a new method for funding Litecoin’s development by mining pool donations. In a tweet published on January 24th, the founder proposed the new way to fund the development.
The founder proposed a 1% block reward donation (0.125LTC) for the Litecoin foundation. If every miner were to obey the request, the foundation would benefit from $1.5MM donations annually.
Lee was speaking in an interview with Cointelegraph when he urged miners to make the contribution. According to Lee, a 1% donation on a consistent basis would provide just enough for Litecoin to move forward. Lee also clarified that funding would be entirely voluntary for block reward owners.
He further explained that 1% happened to be seven times the yearly expenses for Litecoin’s foundation. So, even in the case a small percentage of miners would heed the call and donate, the foundation would still be in a position to put to good use the funds generated.
Resources pulled would be used to fund developers working on Litecoin core, Litewallet, Mimble wimble, LN wallet, the hosting of the annual Litecoin summit and pushing for the adoption of Litecoin to new users and merchants.
Rumor Of Bankruptcy
It can be a daunting task, garnering enough capital to run and operate a business. It’s even more difficult and complicated when the project itself targets decentralization.
In late 2019, rumors had it that the Litecoin Foundation was going bankrupt. Claims which Lee vehemently denied in an October 13 tweet. He urged his users not to listen to fads and lies. He continued to assure users that they had money that would last the foundation for 2 years.
Lee’s proposal comes after Roger Ver and Jihan Wu, bitcoin cash proponents suggested an infrastructure funding plan that required miners to give up 12.5% of block rewards to an operation in Hong Kong.
Litecoin 2014 Merge
Litecoin had in 2014 merged with Dogecoin after concerns of a 51% attack. The merge enables the simultaneous mining of the two assets. The joint mining of Dogecoin and Litecoin has an impact on lee’s mining donation concept.
Lee explained in a second tweet that the merged mining with Dogecoin and other coins enabled miners to take with them 105% in block rewards. He further explained that 1% was a very reasonable amount to give back.
Lee Calls For More Ideas On The Project
The Litecoin founder also urged the community for more ideas about the funding project. He admitted that he was at odds at giving the option to donators to choose the project they want to project their funds to. Lee added that it was important for them to choose the organization to support.