Litecoin (LTC) Transaction Fees To Fall 10x In Anticipation of Bear Market End, Full Blocks

Colin Muller

Litecoin fees will fall by up to ten times, as part of changes in the upcoming version 0.17 of Litecoin, according to a post on the official Litecoin Medium. In the future, the average network fee will be Ł0.0001 per KB, as opposed to the current average of Ł0.001 per KB - $0.005 versus $0.05 at current prices, respectively.

The post detailed a current mismatch in the Litecoin ecosystem which has drawn attention to the issue of transaction fees, namely that fees remain relatively high even as demand for blockspace for transactions is low.

Fees are calculated per KB of memory usage in the blocks, and the post explained:

[c]urrently because the blocks aren’t full there is no need to pay higher fees, which is one reason why the move is being taken

Transaction sizes are based on the amount of transaction data they contain, rather than the amount of value being transferred. Some transaction sizes are less than one KB.

Adrian Gallagher, current lead Litecoin developer and the first hire of the Litecoin Foundation, said  that the future intentions of Litecoin were to “lay down the foundation for a fee rate which we can grow into proactively rather [than] re-actively [sic]”. His remarks come in anticipation of the end of the current cryptoasset bear market, which he predicts will end in three to six months.

The post also touched on the idea of a fee market, which applies to many other cryptocurrencies as well as Litecoin. In the future, when block rewards begin to diminish, it will become necessary to incentivize mining in a different way, namely with transaction fees to transfer already-existing cryptocurrency, rather than creating or “minting” new currency.

Déjà Vu

The strange thing is, this issue is not new, nor in fact is this announcement.

The exact same “news” was announced by Litecoin creator Charlie Lee way back on January 17 - when litecoin’s daily price closed at $187. Lee, also back in January, discussed the incorporation of a fee market into the Litecoin code.

On January 6, Lee outlined intentions of hard-coding in a fee market, proposing that fee rates be stored in Litecoin block headers. If this were the case,, "[m]iners [would be able to] choose to not mine low fee transactions to signal to the market to increase the fees. This should help create a fee market" Adding "I'm convinced this will work". This sounds a lot like Gallagher’s proactive-not-reactive aims.

Whatever the case, it would seem that this Litecoin upgrade has been in the works for some time.

Charlie Lee famously sold all of his Litecoin and later regretted it - although he added that “[he] didn’t actually have that many Litecoins” to begin with.

Redditor Shares Experience Losing 110 LTC From Compromised Wallet Software

Michael LaVere
  • Reddit user Coinhorror relayed their experience of losing 110 LTC to an allegedly compromised version of the Electrum wallet.

A Redditor has shared their experience of losing 110 LTC ($8,360) after allegedly downloading a compromised version of the Electrum wallet. 

According to a post made Tuesday, Reddit user Coinhorror had 110 LTC stolen after an elaborate hunt to recover previously missing funds. Coinhorror relayed the experience of locating litecoin that been in storage after a two-year hiatus from cryptocurrency. 

The post reads, 

So 2 years passed and I've recovered enough psychologically to start looking at my crypto again and at least summon what is left. And I have hard time locating my LTCs.

The Redditor was able to find their private keys to a wallet holding 110 LTC. However, the coins had been transferred to a new address, leading the user to question why the funds had disappeared.

After a series of updates and edits, Coinhorror discovered they had been entering their seed passwords into a compromised version of the Electrum LTC wallet, thereby allowing an attacker access to the funds. 

EDIT2 Looks like I may have downloaded a compromized electrum wallet and got my Ltc stolen from me just now. The kicker is that I entered ALL my seeds there trying to find my ltcs. FML

Fellow Redditors attempted to assist the user in locating the missing funds, in addition to gathering more information on the compromised version of the wallet.

Featured Image Credit: Photo via Pixabay.com