NFT
Members of the Litecoin community are testing an LTC-20 standard for fungibility. The token is currently just an experiment, but could turn into more.
The Litecoin community decided to propose a test standard for LTC-20 and subsequently launched a test token for this purpose. The standard is a fork of the BRC-20 standard, and the community describes it as “just a fun experimental standard that shows 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 a supply of 84 million. The referenced BRC-20 standard is a token standard for an experimental fungible token built with ordinal numbers and inscriptions and stored on the Bitcoin base chain.
On Twitter, Litecoin Punks stated that the first LTC-20 is about 20% minted. There are 4,000 registered for each of the punk holders.
Litecoin Punks on Ordinals Market
It’s unclear whether this will lead to a huge change, but the community is excited nonetheless. Litecoin is one of the oldest cryptocurrencies on the market and it still has a lot of influence.
In the official documentation for the LTC-20 experiment, the author emphasizes that this is an experiment by saying:
“…this is an extremely dynamic experiment, and I strongly advise against making financial decisions based on its design. However, I encourage the litecoin community to tinker with standard designs and optimizations until a general consensus on best practices is reached…”
The idea is to see if fungibility has a place on the Litecoin blockchain. The aim of the experiment is to stake LTC-20 tokens, store a certain number of tokens and transfer a number of tokens. The documentation goes into the technical details of all the features involved.
Litecoin halving is not far off
Litecoin has seen quite a few notable developments since the start of the year. The network has less than 100 days left before the third halving, which lowers block rewards and typically increases the token price.
BIT Mining Limited also unveiled a new mining machine specifically for Litecoin. In combination with the halving, this could very well suit LTC miners. However, the LTC price is falling, with miners selling a large amount of coins.