The Litecoin Foundation has partnered with Antpool, one of the world’s leading digital currency mining platforms to form ‘LTC Labs’. The organization will focus on the research and information of anonymous transactions, decentralized applications, evolution of digital currency, wallets and other projects. The intention is to grow the LTC ecosystem.
As part of the agreement, AntPool will donate half of their Litecoin Pool mining proceeds each month to fund LTC Labs and directly support development initiatives.
How big of a deal is this?
Litecoin has struggled with finding funding for development of new projects/initiatives and has largely relied on community donations. This is a very large increase in funding compared to what Litecoin has received throughout its entire history.
How much does Antpool generate in revenue from mining LTC?
Antpool has an 8% share of total LTC hashrate mining into their pool. Rewards for LTC have been around $1M/day so total rewards generated should be around $80,000/day. Antpool charges their clients a 3% fee, so they make $2,400/day from Litecoin. Since we don't know their profit margin we can't be 100% sure much they're profit they're generating. If they only generate a 10% profit, that's still $1,200/day that they'll be contributing to the development of the Litecoin ecosystem. Wow!
Why would Antpool be so generous with contributing to LTC development?
Miners are some of the largest holders of coin supply. Since they've been stockpiling Litecoin over the years, it makes sense for them to want to increase the value of the coin. By finally investing sufficient funds to develop an ecosystem, LTC can finally start competing with other chains that have large development funds. Because Litecoin already is widely used and accepted, this money should go a long way towards creating exciting new projects that can be rapidly implemented and immediately see real world use.
How will the LTC Foundation manage the funds?
The team is currently working on developing a DAO to help manage these initiatives. To learn more about LTC Labs and the latest updates, visit: http://LTCLabs.org/About Antpool: Antpool supports multi-cryptocurrency mining services, offers simple and easy-to-use interface, secure and stable performance, efficient and intimate service. See the official announcement from Antpool at https://v3.antpool.com/powCommunity/detail/19
Thanks,
-Why Litecoin
Comments