Litecoin (LTC) founder Charlie Lee proposed mining puddle donations as a new funding method for cryptocurrency development.

"I think a better manner to fund development is mining pools voluntarily donate a portion of the block advantage," Lee said in a tweet on Jan. 24, adding:

"How about Litecoin pools donate one% (0.125 LTC) of cake rewards to the @LTCFoundation? If every miner/puddle does this, it amounts to about $1.5MM donation per year!"

With one% donated on a consistent footing, Lee'due south suggested solution would provide plenty funding for Litecoin permanently going forward, Lee confirmed to Cointelegraph.

He explained:

"At current LTC toll, 1% of block rewards is about 7x Litecoin Foundation'due south yearly expenses. Even if a pocket-size per centum of miners are generous enough to donate, the foundation would be able to put information technology to good use by funding developers to piece of work on Litecoin Cadre, Mimble Wimble, LiteWallet, LN wallet, hosting the yearly Litecoin Meridian, and pushing for adoption of Litecoin past merchants and users."

Lee also confirmed such donations are voluntary, adding, "Information technology wouldn't be right if it wasn't voluntary."

Funding issues

Garnering enough capital to run and operate a business organisation can be difficult. The situation becomes more complicated when the business or projection aims for decentralization.

Rumors circulated in late 2022 regarding the Litecoin Foundation'due south potential defalcation, which Lee denied in an Oct. 13 tweet. "Don't heed to stupid fud and lies," Lee said. "We take enough money to concluding 2 years."

Lee's 1% voluntary donation proposal comes after Bitcoin Cash (BCH) proponents Roger Ver and Jihan Wu suggested an "infrastructure funding plan," requiring miners to pay 12.5% of cake rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24.

New concepts

In response to 51% attack concerns, Dogecoin merged its mining with Litecoin in 2022, enabling simultaneous mining of the two assets. Notably, this joint Litecoin and Dogecoin mining impacts Lee's new mining pool donation concept.

"Currently with merged mining of Dogecoin and other Scrypt coins, miners make 105%+ of cake rewards," Lee noted in a second tweet. "So 1% is a reasonably small amount to give back towards funding a public proficient."

Finally, Lee likewise toyed with the idea of miners choosing which Litecoin project their funds volition get toward, asking the community for their opinions on his ideas as a whole.

"It's important that miners can choose to support other Litecoin organizations equally well," he told Cointelegraph. "Miners should donate to the organizations that want to help out."