The founder of Litecoin (LTC), Charlie Lee, asked the community to implement a 1 percent fee on the miners in funding blockchain development. Lee tweeted about the proposal on January 24.

He proposed voluntary donation of a portion of miners’ block rewards to develop Litecoin. He suggested this based on an additional 5 percent of earnings from other coins. He tweeted:

1/ I think a better way to fund development is mining pools voluntarily donate a portion of the block reward. How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year! — Charlie Lee [LTC⚡] (@SatoshiLite) January 24, 2020

Regarding where to store the amount collected by the miners, Lee said it will be decided by the community as well as foundations and organizations currently working on the project with the Litecoin Foundation.

3/ Better yet, pools can let miners decide what organizations to send their 1% to. It can be Litecoin Foundation, @LitecoinDotCom, @theliteschool, or any other Litecoin project.



What do you guys think? — Charlie Lee [LTC⚡] (@SatoshiLite) January 24, 2020

Notwithstanding, the community is still doubtful concerning the necessity of the funds to be donated to these organizations and how it will be utilized for development.

An announcement in the BCH community within the previous two days stated imminent changes to its protocol. The changes are anticipated to happen in May. There is a great difference between the 12.5 percent tax implemented by four of the leading miners on BCH and Lee’s proposal.

The first difference is in the decentralized nature used by Lee to compare a takeover by BCH leading miners. The proposal of Lee is to obtain donation from miners’ excess income to fund the development of LTC while the BCH protocol change threatened to orphan the blocks that refuse to abide by the new taxing system. The BCH protocol change seems to be similar to a centralized government ready to imprison offenders.

Second, Lee likewise proposed a transparent manner of selecting the firms to receive the donations, including the ones involved in the Litecoin project. As for the BCH protocol change, heavy criticisms have been in the air over the selection of an “unnamed” firm in Hong Kong to manage the funds and develop BCH.

The adoption of the proposal by Litecoin will certainly be quite transparent and decentralized as compared with the controversies currently surrounding BCH.

Featured image courtesy of Shutterstock.