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Litecoin’s (LTC) Charlie Lee Suggests Miners Donate One Percent of Block Rewards: Details

Sat, 01/25/2020 - 09:08
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Yuri Molchan
The Litecoin founder supports the idea of the tax for miners suggested by the BTC.TOP CEO recently but in a different way – it should be voluntary
Litecoin’s (LTC) Charlie Lee Suggests Miners Donate One Percent of Block Rewards: Details
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After the CEO of the BTC.TOP, Jiang Zhuoer, proposed imposing an obligatory tax on BCH miners via a new soft fork, many in the community have been discussing it heatedly, detailing its pros and cons.

Several top Bitcoin Cash mining pools have joined their forces to conduct the soft fork and this has been approved by the former 'Bitcoin Jesus' Roger Ver.

All BCH mining pools in the ecosystem are expected to part with 12.5 percent of their block rewards on a regular basis. The blocks of those who refuse will be orphaned, meaning that these pools will not get any rewards at all.

Many crypto thought leaders have spoken against this model. The Litecoin founder Charlie Lee suggests this model can be changed and used for Litecoin Foundation, revealing the details.

Miners can support LTC devs with a sufficient amount of crypto

Charlie Lee agrees with the fact that crypto developers need to have a stable source of funds so they can dedicate all their time and attention to the project. Therefore, he likes the idea of mining pools donating to the developers of the project, without forcing them to do that.

Instead of the 12.5 percent, he suggests that LTC miners should donate a tiny amount of 1 percent of their block rewards to the Litecoin Foundation – that’s 0.125 LTC. At the end of the year, all those tiny donations would total $1.5 million.

Charlie Lee miners' tax 1
Image via Twitter

Lee points out that currently miners are making profits of over 100 percent in block rewards, so parting with just 1 percent should not be a problem.

Charlie Lee miners' tax 2
Image via Twitter

Miners can choose any LTC project they like

The Litecoin founder also points out that it does not have to be only the Litecoin Foundation that they can fund. Miners should be free to choose any project or organization to do with Litecoin.

Image via Twitter

Rebukes pouring from the community

The LTC community seems to have divided in two camps. The first one is those who support this idea, claiming that should BCH impose obligatory donations it will become centralized.

The other camp reproaches Charlie Lee for selling his Litecoin stash back in 2018, when LTC hit its all-time high. They state that Lee should donate the profits he made back then to support LTC devs.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at