Recently, ViaBTC, a leading mining pool for Litecoin (LTC), has supported for merged mining of LTC, Dogecoin (DOGE), and Bellscoin(BEL). This allows miners on ViaBTC to earn rewards in both DOGE and BEL in addition to LTC, thereby increasing the overall potential earnings for LTC miners.

In 2014, to bolster the security of the Dogecoin network, Litecoin founder Charlie Lee advocated for merged mining of LTC and DOGE. This initiative allowed LTC miners to simultaneously mine both cryptocurrencies with the same hashrate, effectively increasing their earnings. As DOGE's popularity and market value skyrocketed, it evolved from a mere bonus to a substantial component of LTC miners' revenue.

We will now calculate how the new merged mining model affects LTC miners' revenues and break down the earnings distribution among LTC, DOGE, and BEL.

LTC Revenues

LTC has a block generation time of 2.5 minutes. Following the third halving in 2023, the block LTC has a block generation time of 2.5 minutes. Following the third halving in 2023, the block reward is 6.25 LTC, leading to a theoretical daily production of 3600 LTC (576 blocks * 6.25 LTC per block). As of August 29, LTC's price was $62.37, translating to a daily value of approximately $224,532.

According to miningpoolstats, on August 29, the total network hashrate for LTC was about 1.12 PH/s. This means that 1 GH/s of hashrate would generate daily revenues of approximately 0.0032 LTC, equivalent to around $0.20.

DOGE Revenues

DOGE has a faster block generation time of 1 minute and does not have a halving mechanism. The block reward remains at 10,000 DOGE, resulting in a theoretical daily production of 14.4 million DOGE. On August 29,, DOGE's price was $0.101, giving it a daily emission of about $1.454 million.

Miningpoolstats data for August 29 shows that DOGE's total network hashrate was around 998 TH/s. Therefore, 1 GH/s of hashrate would yield daily earnings of approximately 14.43 DOGE, valued at roughly $1.46.

BEL Revenues

BEL shares the same block generation time as DOGE (1 minute), but its block reward reduction mechanism is more intricate. Currently, BEL is in epoch 3, with block rewards varying between 25 and 5000 BEL. Based on statistical probabilities, the average reward per block is 144 BEL, leading to a theoretical daily output of 201,600 BEL. As of August 29, BEL's price was $1.17, equating to a daily value of approximately $235,469.

BEL’s Block Rewards (No Hard Cap)

According to miningpoolstats, on August 29, BEL’s total network hashrate was about 831 TH/s. This implies that 1 GH/s of hashrate would produce daily revenues of approximately 0.2425 BEL, valued at about $0.28.

Effect of Adding BEL on LTC Miners' Earnings Breakdown 

Based on the data provided above, the combined daily emission from LTC and DOGE merged mining is about $1.679 million. Adding BEL to the mix increases the total daily emission from the three cryptocurrencies to $1.914 million, marking a 14% boost in daily emissions.

LTC miners have also experienced a noticeable increase in revenues with BEL integrated into merged mining. Previously, mining LTC and DOGE together yielded $1.66 per GH/s per day. With BEL included, this rises to $1.94 per GH/s, reflecting a 17% increase.

For instance, using an Antminer L7 with an electricity cost of $0.04 per kWh, the 3425 W power results in a daily electricity fee of about $3.29. With a hashrate of 9.5 GH/s, the daily revenue is $15.75, and the profit is $12.46. After incorporating BEL merged mining, the daily revenue of the Antminer L7 increases to $18.44, with a daily profit of $15.15, representing a 22% increase in profit. This equates to an additional $80.92 in net profit per month.

The revenue boost for LTC miners from this merged mining venture is substantial. Presently, DOGE contributes 75% to LTC miners' revenues, BEL contributes 15%, and LTC itself accounts for 10%. With rising prices for DOGE and BEL, merged mining has become a crucial income stream for LTC miners.

It's important to be aware that both LTC and BEL have reward reduction mechanisms. LTC’s next halving is projected for around 2027, while BEL is nearing its epoch 5, expected in 2025, which will cut the block reward significantly to 2 BEL. Miners seeking higher returns should act quickly. 

ViaBTC is currently offering support for LTC+DOGE+BEL merged mining and has initiated a 30-day promotion with zero fees for BEL mining pools. This is a prime opportunity for LTC miners: www.viabtc.com