Navigating The Ltc Halving: What Scrypt Miners Need To Know

  • 24/07/2023
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  • News

This post only affects the SCRYPT miners. Sha256, Eaglesong (CKB) and Blake2s (KDA) miners can ignore it if they want.

As most of you must know LTC will be undergoing its halving very soon, this means that the rewards produced by LTC blocks will become half of what they are today, if price remains the same for LTC this would mean that LTC profitability will become half of what it is today. This affects all Scrypt pools even if they don’t mine LTC as you will see later.

However, these are not necessarily bad news, periods of halving usually mean an increase of coin prices, since if supply is reduced and less miners are selling coins every day, as demand stays neutral or unaffected, it can spike the coin price a bit over the next few months.

Moreover, since we are also merge-mining DOGE, and DOGE does not halve, it means that the profitability for SCRYPT mining drop will not be -50%. Here is how to predict the actual drop:

\[Drop\% = 1- (DOGE\%+\frac{LTC\%}{2})\]

Since DOGE rewards currently account for 57% of mining revenue, this means that the resulting drop will be:

\[Drop\% = 1- (0.57+\frac{0.43}{2}) = 0.215 = 21.5\%\]

Therefore, when the halving occurs, if the LTC price remains unaffected, all SCRYPT miners will see their daily rewards decrease by 21.5%.

This decrease will take a few hours or even days to occur as our mining optimizations will automatically mine other coins when the halving occurs, to try to extend the current profitability for as long as possible. However, as the other coins don’t have the capacity to handle the hashrate of all the LTC network, they soon will become as profitable as LTC in a matter of days as miners switch to the other coins as well.

By mining at PowerPool you stay ahead to all profitability changes as we automatically monitor and optimize your mining so you can enjoy a faster ROI compared to any other pool in existence. Join now to squeeze as much revenue out of your miners as possible.