The much-awaited Litecoin halving event has now been finished; however, it appears that investors have reacted by taking part in a selloff.

Litecoin Has Completed Its Third Halving, Block Rewards Now Down To 6.25 LTC

The block rewards for LTC are permanently reduced by half during the “halving” event. This occurrence is periodic, taking place roughly every 840,000 blocks that miners hash, or every four years.

Since the creation of Litecoin, its block rewards have been reduced three times, making today’s halving its third. Block rewards for the coin decreased twice, the first time from 50 LTC to 25 LTC and the second time from 25 LTC to 12.5 LTC.

The current halving event significantly reduced the payouts for solving blocks, bringing them down to 6.25 LTC. The existence of halves is due to the fact that they act as a check on the inflation of the asset.

The only means to add new tokens to the circulating supply is through the block rewards that miners receive; therefore, by repeatedly reducing them, the quantity of the cryptocurrency increases gradually.

When the halving continued, the block rewards eventually got close to zero. This would happen around the year 2142. The asset’s supply will then reach its maximum limit, forcing miners to rely on transaction fees to cover operating expenses.

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It’s interesting to note that both price halvings occurred at almost the same price. The rise of the cryptocurrency’s user base and utility-related usage seems to have gone well.

Because Litecoin provides inexpensive and quick transactions compared to certain other networks like Bitcoin, it may be the reason for this rapid surge in usage. Investors in LTC can only hope that this rise will eventually be reflected in the price.

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