Cryptocurrency management company giant Metalpha Technology Holding Ltd. announced today that it will work with the “Litecoin Foundation” to develop sustainable mining solutions for the Litecoin ecosystem.
Litecoin Its foundation stands out as a non-profit organization that maintains and develops products for the blockchain of the same name.
The scope of the partnership includes the development of derivative products, facilitating the use of renewable energy, increasing energy efficiency and reducing carbon emissions from mining on the Litecoin Network.
Metalpha will develop financial derivatives for LTC tokens, further aiming to support crypto miners with market hedging products and reduce the environmental impact of crypto mining.
Hedging is known as a risk management strategy used to offset losses on investments by taking a “reverse position” on a related asset.
crypto mining, bitcoin and for “proof of work (PoW)” blockchains such as Litecoin, it is a resource-intensive activity that relies on powerful computers to process and verify transactions. Miners receive network tokens as a reward, and these tokens are often sold on the open market to cover extensive costs and make a profit.
However, rising mining costs and lowering profits from sales result in many miners choosing to hedge.
Meanwhile, Metalpha and the Litecoin Foundation added that they will work with universities and research institutions to advance sustainable blockchain innovation, support public education around the Litecoin network, and improve network awareness, adoption and scalability.
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