Charlie Lee Proposes Funding Litecoin Development With a Voluntary Mining “Tax”

CryptoMode Litecoin Price

The Litecoin project is still firing on all cylinders. Keeping any cryptocurrency development afloat with sufficient funding can prove to be challenging in any case.

For Litecoin, it appears that there are no immediate threats in this regard.

Funding the Development of Litecoin

However, the rate at which new developments and upgrades have been introduced leaves somewhat to be desired. 

Given how the Litecoin Core group is made up of volunteers, that is not too surprising.

To counter this ongoing “issue”, Charlie Lee has come up with some interesting plans.

In his opinion, it is time to fund development by voluntarily having mining pools strip a portion of the block reward.

This portion is then used to fund the development of this project for the foreseeable future.

Under the current circumstances, a 1% reduction in block reward has been proposed.

Assuming miners and mining pools agree, it will yield roughly $1.5 million per year at the current price. 

This is clearly a direct response to what is going on with the Bitcoin Cash “tax’ proposal.

The idea put forward by Charlie Lee is not outlandish, albeit it remains to be seen how the community will respond.

Those users engaging in merged mining earn 105% of block rewards when obtaining DOGE at the same time. 

A 1% reduction would not effect the profitability all that much, in hindsight.

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