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Litecoin community members are testing an LTC-20 standard for the purposes of fungibility. The token is just an experiment at the moment but could turn into more.
The Litecoin community has decided to propose a test standard for LTC-20 and has subsequently launched a test token for the purpose. The standard is a fork from the BRC-20 standard, and the community describes it as “just a fun experimental standard demonstrating that you can create off-chain balance states with inscriptions.”
What Is the LTC-20 Standard?
The standard is being developed on top of the Litecoin Ordinals Protocols, with the supply being 84 million. The BRC-20 standard that was referred to is a token standard for an experimental fungible token built with Ordinals and inscriptions and stored on the Bitcoin base chain.
On Twitter, Litecoin Punks stated that the first LTC-20 is about 20% minted. There have been 4,000 inscribed for each of the punk holders.
It’s unclear whether there will be a massive change stemming from this, but the community is nonetheless excited. Litecoin is one of the oldest cryptocurrencies on the market and still continues to have a lot of clout.
In the official documentation for the LTC-20 experiment, the author emphasizes that this is an experiment, saying,
“…this is an extremely dynamic experiment, and I strongly discourage any financial decisions to be made on the basis of it’s design. I do, however, encourage the litecoin community to tinker with standard designs and optimizations until a general consensus on best practices is met…”
The idea is to see if fungibility has a place on the Litecoin blockchain. The goal of the experiment is to deploy LTC-20 tokens, mint a certain amount of tokens, and transfer a number of tokens. The documentation goes into the technical details of all the functions involved.
Litecoin Halving Is Not Far Away
Litecoin has undergone a fair few notable developments since the year started. The network has less than 100 days left before its third halving, which reduces the block rewards, and typically boosts the token price.
BIT Mining Limited also revealed a new mining machine dedicated to Litecoin. Combined with the halving, this could suit LTC miners very well. However, the LTC price has actually been dipping, with miners selling a large amount of coins.