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Litecoin, a preferred cryptocurrency, has executed its block reward halving, a scheduled occasion that happens roughly each 4 years, decreasing the reward for miners from 12.5 LTC to six.25 LTC. The final halving occasion was in August 2019.
Each 4 years, or after each 840,000 blocks mined, Litecoin’s code requires the miner’s reward to be reduce in half, including to the diffculty thus, in idea, making LTC extra precious. This course of is about to proceed till across the 12 months 2142, successfully capping the overall provide of Litecoin at 84,000,000 LTC.
Litecoin’s self-imposed restrict on provide goals to emulate the shortage of commodities like gold, an strategy contrasting with conventional fiar currencies the place governments can freely print cash, probably inflicting inflation.
LITECOIN HAS SUCCESSFULLY HALVED ITS BLOCK REWARD!
⚡ $LTC ⚡ pic.twitter.com/iemCnkPsdu
— Litecoin (@litecoin) August 2, 2023
Within the run-up to earlier halving occasions, Litecoin’s value has exhibited noticeable motion, reaching peaks earlier than the occasion and settling afterward. At 3 pm ET on Tuesday, Litecoin’s value was reported at $93.10, with a current excessive of $113 on July 3, in line with CoinGecko.
On the time of writing, LTC is priced at $89.40
The halving process inevitably impacts miners, whose profitability is straight tied to the block reward. Alongside Litecoin, the method can also have an effect on different cryptocurrencies, notably because of Litecoin’s distinctive dual-mining relationship with Dogecoin.
Binance Analysis studied the merge-mining partnership between Litecoin and Dogecoin, stating that “Since Dogecoin’s swap to AuxPoW in 2014, Dogecoin’s hashrate has exhibited a particularly sturdy and optimistic correlation (0.95) with Litecoin’s hashrate:”
“Provided that block mining rewards are halved each 4 years for each Litecoin and Bitcoin, merge-mining might probably develop into an answer to keep up community safety within the long-run as newer cryptoassets, with greater block rewards, might be merge-mined inside the similar swimming pools.”
