In a recent post, on the official Litecoin blog, it has been stated that a significant marker is approaching. At this point in time, over 70% of all Litecoin has been mined. This equates to over 60 million out of the maximum 84 million total supply.
The Litecoin team has stated, “This also marks the point at which there are only 3M more Litecoin to go until the halving, which will see the Block reward fall from 25 Litecoin to 12.5 Litecoin. The halving is estimated to take someplace this august when 75% of the total Litecoin supply has been mined. At the current reward rate it takes ~70 days to mint 1M new Litecoin into circulation and after the halving this time will double to ~140.”
Proof-of-work, or ‘POW’, is a protocol used by various cryptocurrencies. The title refers to the method in which data is verified on the blockchain, and through which new coins are minted.
This protocol is the original, and the same used today by both Bitcoin and Litecoin. However, as adoption of the industry is on the rise, POW has fallen out of favour somewhat. This is primarily due to energy requirements and vulnerabilities seen in immature networks.
To learn about how POW functions, check out this informative article HERE.
The term ‘the halvening’ is one used to describe a rare event in which the rewards divvied out for each block mined on a POW based coin, is cut in half. These events typically take place every four years for both Bitcoin and Litecoin.
In the past, markets have responded to such events through dramatic increases in prices. After such an event occurs, miners effectively make half as much as they used to. Due to this they are no longer willing to sell the respective currency as cheap, since their costs have just doubled.
While mining difficulty is adjustable, the last two ‘halvenings’ have seen a new all-time-high within 12 months of its occurrence.
It is believed by most that future ‘halvenings’ will see the markets react in similar fashion. This makes both the upcoming Litecoin event, and the 2020 Bitcoin event, highly anticipated.
Mark it on your calendar
For those interested, mark the following dates on your calendar. They represent the anticipated points in which each coin will see their miner’s rewards cut in half.
- August 2019
If Litecoin is able to establish itself, and attain true staying power in world finance, articles detailing ‘the halvening’ may continue being written in 2142.
Per the Litecoin blog post, “The final Litecoin is estimated to be mined sometime in 2142 according to the mathematics of the system, at this point 0.00000042 Litecoin will be the block reward.”