This morning of January 25th 2020, Charlie Lee creator of Litecoin raised a very interesting proposition on Twitter. One that evolves around funding. Talking about money is often a polemic topic and as expected he immediately received a lot of feedback from the community. And that's probably what he was hoping for.
On the Tweet he opens up a topic that focuses on Litecoin further development, but most importantly how to acquire the funds that will guarantee sustainability of Litecoin Foundation and its project creators. Projects and proposals that are aimed to enhance and create new protocols, side chains and solutions that are often fit for Litecoin and Bitcoin. In addition, similar to other cryptocurrency projects Litecoin needs to enhance its marketing strategies in a competitive fashion to boost the mass adoption movement around the world. In order to that the Foundation needs funding, money that will be used as Charlie suggested, for public good.
Let's take a peak in detail at Charlie's most recent tweets and some of the responses he has been getting from the Litecoin Community
On a series of 3 tweets Charlie explains his funding idea which suggests that LTC mining pools voluntarily donate a portion (fraction of 1%) of their block reward to the Litecoin Foundation. This amount of 0.125 LTC per block reward would translate into $1.5 million dollars per year that could be used to enhance Litecoin further development.
On his third tweet he also suggests that miners pick the organization that they will donate towards. This will enable miners to use their donations to fund projects and proposal that they see more fit and more relevant for the growth of Litecoin and its community.
Charlie's Proposal raised a lot of comments on Twitter. Some members of the community think this a great idea that focuses on the longevity of the project. Others raise concern about transparency, and decentralization in general.
In my opinion, the topic raises awareness to a problem that needs a solution. There are a lot of great solutions being developed by the Litecoin team, such MibleWimble, Lightning Network as well as great marketing strategies ready to be organized and implemented by a range of personal ready to get it done. But in order to make these amazing things happen for Litecoin, the Foundation needs funding and the funding needs to be sustainable in order to keep the ball rolling. After all developers have families and they do pay rent too. Volunteers are great but in order to keep them in and involved there must be compensation in the long run, simply because of commitment, and talent loss. So much is learned and so much knowledge is developed by great talent but so much is lost as volunteers proceed towards independent careers that often involve more centralized crypto projects.
I think the community can change that. There is a misconception about funding and decentralization as if money compromises transparency and I think it was a great time for Charlie to raise this topic in a public manner. Let it out so we as a community can come up with a great solution to this problem, which in my opinion involves governance and trust.
The biggest concern from community as I understood from the tweet responses is profitability of miners as well as transparency of the Litecoin Foundation. In response @loshan1212, a Litecoin Foundation member and volunteers tweeted: "As the Litecoin Foundation is a non-profit, it's part of our mission to be extremely transparent about donated funds. All funds and payments will be public." All details regarding Litecoin foundation budget, funding and salaries are made available in this link: Litecoin Founadtion Finance
In conclusion, I am curious to know how miners will respond to this tweet and the long term repercussions of this great discussion. No matter which way we as a community decide to go the most important thing is that we all are here, contributing and making this amazing decision together. That's the power of decentralization.
By: Michelle Mafra