Litecoin miners' rewards have dropped to 6.25 LTC
The Litecoin (LTC) cryptocurrency network has hosted an event called halving. This is a pre-determined reduction in the reward that miners receive for keeping the coin's blockchain running.
The halving officially occurred after miners confirmed transaction block number 2,520,000. This is the third halving since the cryptocurrency was created in 2011. The payout amount for processing one block dropped from 12.5 LTC to 6.25 LTC.
In early July, the price of the coin exceeded the $110 mark for the first time since 2022. The historical maximum of the LTC rate was reached in May 2021 at $410.
Litecoin is the second oldest cryptocurrency in existence, originally created as a slightly modified copy (fork) of Bitcoin by developer Charlie Lee. Like Bitcoin, Litecoin runs on the Proof-of-Work (PoW) algorithm. And in which verification of transactions in the blockchain is maintained by miners in exchange for rewards in the form of new coins. Each new block of transactions is added to the Litecoin blockchain every 2.5 minutes on average, compared to Bitcoin's 10 minutes.
Halving also takes place in bitcoin and other cryptocurrencies that use its code as the basis for their own - Zcash (ZEC), for example.
According to Litecoin creator Charlie Lee, lowering miner rewards helps to achieve mass distribution of the coin without compromising the security of the network.
Our experts note that the next halving of the coin will take place tentatively in July 2027. $LTC