The Litecoin community has voted to propose a test standard for LTC-20 and have created a test token for that purpose. The standard is a fork of the BRC-20 standard, and it is described by the community as “just a fun experimental standard that shows you can create off-chain balance states with inscriptions”.
The standard is being built on top of the Litecoin Ordinals Protocols, with a total of 84 million coins. The mentioned BRC-20 standard is a token standard for experimental, interchangeable tokens built with Ordinal and inscriptions and stored on the Bitcoin base chain.
Litecoin Punks said on Twitter that the first LTC-20 was roughly 20% mined. Each punk bearer has received 4,000 inscriptions.
It’s uncertain whether this will lead to significant change, but the community is excited nonetheless. Litecoin is one of the oldest cryptocurrencies on the market, and still has great power.
The author emphasizes that this is an experiment in the official documentation for the LTC-20 experiment, adding, “…this is a very dynamic experiment, and I strongly discourage financial decisions being made based on its design.” I encourage the Litecoin community, however, to experiment with standard designs and optimizations until a broad consensus on best practices is reached…”
The goal is to determine whether fungibility has a place in the Litecoin network. The aim of the experiment is to deploy LTC-20 tokens, mint a certain number of tokens, and transfer a certain number of tokens. The documentation describes in detail all the functions involved.
Since the beginning of the year, Litecoin has experienced a number of important developments. The network has less than 100 days until the third halving, which cuts block rewards while typically driving up token prices.
BIT Mining Limited recently showcased its new Litecoin mining unit. When coupled with halvings, this may be of great benefit to LTC miners. However, the price of LTC has fallen due to miners selling large amounts of coins.