Frequently Asked Questions

1. What is Litecoin Cash Burner?

Litecoin Cash Burner is a 24/7 active HIVE miner running on a full Litecoin Cash node, specifically LitecoinCash Core 0.16.3.

2. What is the main goal of Litecoin Cash Burner?

The main goal of Litecoin Cash Burner is to destroy as many LCC coins as possible while simultaneously securing the network.

3. What is the purpose of this?

The purpose is based on a basic economic principle: if there is an oversupply of a product in the market, the price will drop, and vice versa.

4. Why is your name LitecoinCashBurner instead of LitecoinCashMiner or LitecoinCashHiveMiner or something more technically correct?

This name reflects the main mission of our miner. LCC Burner is not profitable by any means. From an economic standpoint, we are combating inflation by burning LCC coins, so our miner could be called "Anti-inflation Miner," but that might sound too complicated.

5. How can you beat inflation by burning coins?

Fewer coins in circulation mean lower inflation. It's as simple as that.

6. Who benefits from this service?

Every single LCC holder will benefit in the long run. Every monetary system is more valuable if inflation is low.

7. Why do you use Litecoin Cash and not other coins?

Litecoin Cash is like an uncut diamond. It's technically similar to Litecoin or Bitcoin, but its developers added a unique mining mechanism called HIVE. While Litecoin and Bitcoin only require electricity to mine, we can mine new Litecoin Cash coins by buying mining power with Litecoin Cash coins instead of electricity.

8. What do you mean by Litecoin Cash being an uncut diamond?

Litecoin Cash was created as a fork of Litecoin, giving it a fairer initial distribution than other coins. However, as new coins are created daily, this initial advantage diminishes as new coins increase inflation and reduce the coin's value. The aim of the LCC Burner is to destroy as many coins as possible with the help of donors and the HIVE mining mechanism. The burned coins are like dirt to be removed from the diamond.

9. What is HIVE mining?

HIVE mining is unique to Litecoin Cash and is an agent-based mining mechanism (agents are called Bees, and rewards are called Honey). You don't need special mining hardware, just a full Litecoin Cash Core node running on your computer. If you have a positive LCC balance in your wallet, you can start mining. However, to earn Honey, you must buy Bees first.

10. What is the "HIVE miner global Index"?

The HIVE miner global index is a crucial tool for deciding when to mine using the HIVE mechanism. If the number is below 100, mining is likely profitable; if the number is above 100, mining is likely unprofitable.

11. Why do you need other people's coins instead of waiting for the "HIVE miner global index" to drop below 100 to mine profitably?

We are not mining for profit; we are mining to burn coins and keep inflation lower.

12. How does the "HIVE miner global Index" affect LCC Burner operations?

LCC Burner operates the best when the "HIVE miner global Index" (GI) values are in the orange zone, between 100 and 150, avoiding green (below 100) and red (above 150) zones.

13. If you like to burn coins so much, why bother about the GI at all? Why not run LCC Burner above a GI of 150 or even go to 200?

Let's compare this to a water miracle. For LCC Burner, a GI below 100 is ice, a GI above 150 is steam, and a GI between 100 and 150 is like liquid water, suitable for living conditions.

14. Why is a GI between 100 and 150 so important?

When the GI is above 100 and we burn all the mined coins, we start to lower inflation. However, inflation still exists, albeit at a lower level. When we burn coins when the GI is around 150, inflation stops (all newly mined POW + HIVE coins equal destroyed coins). If the GI is above 150, it can actually reverse inflation, but it becomes too expensive to maintain, even at the current low price of Litecoin Cash coins.

15. What will happen to LCC Burner if the GI exceeds 150?

The goal is to stop inflation, not reverse it. If the GI climbs above 150, it means the network has enough energy to burn inflation. The LCC Burner Pool will then start accumulating coins until the GI drops below 150. The miner will remain active, but no new Bees will be purchased until the GI drops.

16. What kind of mathematics is involved in stopping inflation?

It's very basic mathematics. Each month, about a million new coins are mined (756,000 HIVE-mined and 252,000 POW-mined). To stop inflation, we must burn a million coins each month.

17. If there are enough funds in the LCC Burning Pool, 11,111 coins will be destroyed every 8 hours, which is 33,333 per day and approximately a million per month. How many LCC coins from donors are needed to burn a million coins in a month?

Let's play with some mathematics:

Suppose the GI is 150 (which is very high and unprofitable), and we collect 10,000 LCC coins from donors. LCC Burner will then buy Bees and collect Honey rewards. Because LCC Burner is an LCC HIVE miner running 24/7, it is predictable how much rewards it will collect. Since the expected reward correlates with the GI, it will receive $ \frac{10,000 \times 100}{GI} = \frac{10,000}{1.5} = 6666 $ LCC coins as Honey reward on the first run. With these 6666 coins, we will buy new Bees and receive 4444 LCC coins as Honey reward in the second run. With these 4444 LCC coins, we will buy new Bees and receive 2963 LCC coins as Honey reward in the third run. Calculating the sum of the infinite series, we will burn not only the initial 10,000 LCC coins but additionally 20,000 LCC coins, so in the end, from the donated 10,000 coins, 30,000 coins will be burned altogether. Let's see mathematic theory about:

Sum of Infinite Geometric Series

The series is given by:

$$10000 + \frac{10000}{1.5} + \frac{10000}{1.5^2} + \frac{10000}{1.5^3} + \cdots$$

This is an infinite geometric series with the first term $ a = 10000 $ and common ratio $ r = \frac{2}{3} $.

The sum $ S $ of an infinite geometric series is calculated using the formula:

$$S = \frac{a}{1 - r}$$

Substituting the values $ a = 10000 $ and $ r = \frac{2}{3} $, we get:

$$S = \frac{10000}{1 - \frac{2}{3}} = \frac{10000}{\frac{1}{3}} = 10000 \times 3 = 30000$$

Therefore, the sum of the infinite series is:

$$\boxed{30000}$$

18. Core Wallet 0.16.3 allows you to donate 15% of your coins to the LCC Community fund when you buy mining Bees. You still receive the same number of mining Bees as if you had given nothing to the LCC Community. Why not donate the 15%? Why be so stingy?

It's mathematics again. The main goal of LCC Burner is to burn as many coins as possible, which means sending as many coins as possible to a non-spendable "nonstandard" address. From that perspective, there is a significant difference: instead of burning 30,000 coins, only 25,500 coins could be burned if we donate 15% to the LCC Community fund.

19. The LCC Burner checks every 8 hours whether it will buy new mining Bees or not. If there are enough funds in the LCC Burner's pool address ( at least 11,111.1 LCC coins at "CUFDQHTaP65iArYRd7hncty9EBkLKADrhE" ) and if the Global Index (GI) is lower than 150, the LCC burner will increase the mining power by buying 888888 new mining Bees with an exact value of 11,111.1 LCC Coins. Since we are NOT giving 15% to the LCC Community, this action will burn the whole 11,111.1 LCC coins. When exactly is this verification done?

It is currently programmed to happen three times a day, at 22:00h, at 6:00h and at 14:00h UTC (Coordinated Universal Time) time. Our local time zone is CEST Central European Summer Time – CEST Time Zone (Daylight Saving Time) https://www.timeanddate.com/time/zones/cest , so from our time zone we are burning coins at 00:00h , 08:00h and 16:00h

20. What about statistics. For which time zone are the database calculations ?

All database calculations are made in the CEST time zone (Daylight Saving Time) https://www.timeanddate.com/time/zones/cest

21. What about statistics. For which time zone are the database calculations ?

All database calculations are made in the CEST time zone (Daylight Saving Time) https://www.timeanddate.com/time/zones/cest

22. When do you plan to stop burning coins ?

The LCC Burner is intended as a long-term project. The process of burning coins is in natural equilibrium with the price of the coin. The more valuable the coin, the less the LCC whales are willing to sacrifice some of their accumulated coinage for the common good. ( 100 dollar bills are only used to light cigarettes in gangster movies, there is no such hero in the real world 🤑)

23. Is there anything I can do to support the success of LitecoinCash, even if I don't fully trust you with my coins?

Absolutely. The core principle of any blockchain is that trust between individuals isn't necessary, yet the system continues to function effectively.

The best way to help LCC succeed is to download the full node wallet from the official LitecoinCash website, run it on your computer, and simply leave it running. You don't need to do anything else.
Another good option is to visit an exchange like Mercatox and try Hive mining with your full node wallet.
You can also try Proof of Work (PoW) mining, which includes MinotaurX and Sha256 options. This is generally more suited for tech enthusiasts. For PoW mining, you can use electricity and specialized hardware (Sha256 Bitcoin Miner) or electricity and ordinary computers (MinotaurX).
Lastly, you can contribute some of your LCC coins to our LitecoinCashBurner, although this is more of a supplementary option.

24. What Do the Statistics Represent?

The statistics reflect the values of newly created coins from mining and the values of coins that have been burned. Positive values represent newly mined coins, while negative values correspond to burned coins. The second table is particularly important as it highlights the difference between mined and burned coins. A positive blue value indicates that inflation is prevailing, while a negative red value signals that deflation is taking over. For a more playful interpretation, imagine a "battle" between two teams—red and blue. The second graph shows who’s winning: a blue line means the blue team is ahead; a red line means the red team is in the lead. A blank line signifies a tie at that moment. In this analogy, we are the red team, and the blue team represents our "rivals."