The Litecoin community is currently testing a new standard called LTC-20, which aims to improve the fungibility of the cryptocurrency. Although the token is still in the experimental stage, it has the potential to become a significant development for Litecoin.
The LTC-20 standard is a fork from the BRC-20 standard and is being developed on top of the Litecoin Ordinals Protocols. The supply will be 84 million, and the standard will demonstrate that off-chain balance states with inscriptions can be created.
The BRC-20 standard is an experimental fungible token built with Ordinals and inscriptions stored on the Bitcoin base chain.
Litecoin Punks announced on Twitter that the first LTC-20 is about 20% minted, with 4,000 inscribed for each of the punk holders. Although it remains unclear whether this development will have a massive impact, the Litecoin community is excited about the project.
According to the official documentation of the LTC-20 experiment, the project is still in the experimental phase, and the author strongly advises against making any financial decisions based on its design.
The aim of the LTC-20 experiment is to test the deployment, minting, and transfer of tokens to determine if fungibility can be improved on the Litecoin blockchain. The documentation provides technical details of all the involved functions.
Litecoin’s third halving draws nearer
Litecoin has undergone notable developments since the beginning of the year. The network has less than 100 days left before its third halving, which reduces the block rewards and typically boosts the token price.
After the upcoming halving event and the introduction of new developments like the LTC-20 standard for Ordinals, traders are expecting a significant surge in the price of LTC.
BIT Mining Limited has also revealed a new mining machine dedicated to Litecoin, which could suit LTC miners very well. However, the LTC price has actually been dipping, with miners selling a large number of coins.