Executive summary
Scrypt merged mining allows a single stream of Scrypt proof‑of‑work to secure Litecoin (LTC) alongside a basket of auxiliary Scrypt blockchains at the same time. Pools build an LTC block template (the parent) and, in parallel, headers for auxiliary chains that accept Auxiliary Proof‑of‑Work (AuxPoW). When a miner submits a valid proof, the pool can relay that same work to several chains simultaneously. The outcome is higher and more stable miner revenue without additional hashing cost, and a stickier security budget for the entire Scrypt ecosystem. LTC plus DOGE is now the default pairing; specialized multi‑coin pools extend this with rotating sets of smaller Scrypt coins.
How AuxPoW works
AuxPoW is a reuse mechanism. The miner solves one Scrypt puzzle. The pool binds the LTC block header to additional auxiliary headers so that auxiliary chains can verify the LTC proof as their own. The ASIC continues hashing a single job; the pool handles the multiplexing. Because hashing is not duplicated, power draw stays constant while potential rewards increase.
A pivotal historical step was Dogecoin’s move to AuxPoW in 2014. From that moment, pools could mine Litecoin and Dogecoin together, and miners could be paid in both. In practice, the two networks now share a de‑facto security base: a large fleet of Scrypt ASICs pointed at pools that either split payouts across coins or convert the auxiliary value into more LTC.
Why operators and finance teams care
• Revenue uplift: If baseline LTC revenue is R_ltc, merged mining lifts expected returns toward R_ltc + ΣR_i, where each R_i reflects the market value of an auxiliary coin after fees and any conversion spreads. When DOGE profitability is comparable to LTC, effective returns can approach roughly twice an LTC‑only baseline. Smaller auxiliaries usually add a few percentage points on top.
• Lower variance: Multiple reward streams smooth the impact of a single coin’s difficulty or price swings, which helps rigs stay online in marginal conditions.
• Operational simplicity: Miners target one Scrypt endpoint; the pool constructs templates, tracks auxiliary shares, and pays out according to policy.
• Treasury signaling: For payment‑oriented chains, merged mining demonstrates robust security without pushing costs to end users—a favorable message for merchants, processors, and corporate treasurers.
Pool payout models
Most Scrypt pools offer two options:
1) Separate‑coin payouts. The pool pays in LTC and each enabled auxiliary coin (e.g., LTC + DOGE + others). This preserves exposure to each asset but increases bookkeeping.
2) Boosted PPS in LTC. The pool values auxiliary rewards in real time and adds that value to the LTC payout, yielding an effective PPS ratio above 100%. This simplifies accounting at the cost of forfeiting optionality on the auxiliary coins.
Both models deliver more value than LTC‑only mining because they monetize the same watts across multiple chains.
Current merged‑mined roster (reference frame)
Industrial Scrypt pools document which auxiliary coins they support. Sets change, but the backbone is steady: LTC as the parent with DOGE as the primary auxiliary. When networks are stable and liquid, pools may layer in legacy Scrypt chains—such as Bells, Luckycoin, Pepecoin, Junkcoin, Dingocoin, ShibaInucoin, Craftcoin, and others—to add incremental yield. The mix rotates with network health and demand. The key point is flexibility: pools can add or remove auxiliaries without any change to miner configuration.
Case study: Mining‑Dutch as a multi‑coin Scrypt pool
Mining‑Dutch is an example of a pool that leans into merged mining at scale:
• Merged mining is automatic for compatible coins. Miners point to the Scrypt stratum once; the pool merges eligible auxiliaries behind the scenes.
• LTC + DOGE is the baseline. In addition, the pool maintains a rotating basket of smaller Scrypt coins and either pays them directly or converts them per the miner’s preferences.
• Setup mirrors standard practice. Operators configure regional stratum endpoints, set workers, and define payout addresses and conversion rules in the dashboard.
From the Scrypt menu and merged‑mining view, Mining‑Dutch surfaces a long list of AuxPoW‑capable chains. Lineups change, but the current roster illustrated by the menu includes (alphabetical by label): BlockChainCoinX, Catcoin, Cyberyen, Digibyte, Ferrite, Ibithub, Litecoin, MateableCoin, Mooncoin, StohnCoin, TheMinerzCoin, Trumpow, Verge, B1T, Beerscoin, Bells, BonkCoin, Craftcoin, Dingocoin, Dogecoin, Earthcoin, Flopcoin, Junkcoin, Lebowskiscoin, Luckycoin, Myriadcoin, Newyorkcoin, Pepecoin, ShibaInucoin, and Worldcoin. Not every coin is active at all times; availability is toggled based on chain health and liquidity.
Operator checklist
1) Select a reputable Scrypt pool that supports LTC + DOGE and, if desired, a curated basket of auxiliary Scrypt coins. Confirm payout policies (split‑coin versus boosted LTC) and fees.
2) Configure once. Point ASICs to the pool’s Scrypt stratum and set workers. Merge mining is template‑driven by the pool; no extra ports are required.
3) Choose a payout strategy. Retail miners often prefer split‑coin payouts; institutional miners and treasury teams frequently select boosted PPS in LTC to simplify accounting. Hybrid approaches—DOGE in kind, long tail auto‑converted—are common.
4) Monitor effective PPS. Track the pool’s reported PPS ratio or equivalent metric; it reflects auxiliary contribution and market conditions.
5) Watch for policy updates. Pools may switch between payout modes or rotate the auxiliary basket as markets evolve.
Economics: what moves the needle
• Parent chain dynamics: LTC price and difficulty set the baseline.
• Dominant auxiliary: DOGE price, difficulty, and reward dominate auxiliary contribution. Strong DOGE markets can lift effective PPS toward ~200% of an LTC‑only baseline; weaker DOGE periods bring it closer to ~100–130%, depending on the long‑tail basket.
• Long‑tail auxiliaries: Individually small but collectively additive, especially when one or two see bursts of demand. Because there is no incremental electricity cost, these coins function as convex optionality—limited downside with occasional upside. Pools routinely disable unhealthy chains to avoid wasted effort.
• Costs and conversion: Pool fees, conversion spreads, withdrawal minimums, and payment batching influence what lands in the wallet.
Ecosystem effects for Litecoin and Dogecoin
• Security resilience: Extra revenue keeps Scrypt rigs online, supporting consistent block production across market cycles. This stability helps exchanges, wallets, and merchants plan around predictable confirmations and fees.
• User cost discipline: Because merged mining increases miner income without needing higher transaction fees, payment flows on both networks can remain cost‑effective.
• Integration flywheel: Reliable base‑layer performance encourages more integrations, which increases transaction flow and strengthens the business case for corporate usage.
Risks and mitigations
• Pool concentration: If a few pools dominate both parent and auxiliary chains, governance and operational risk rise. Diversifying across reputable pools reduces exposure.
• Auxiliary churn: Some niche chains go dormant or rebrand. Treat the basket as dynamic.
• Market dependency: Auxiliary revenue depends on market liquidity. DOGE covers most of the heavy lifting; the long tail is opportunistic.
• Accounting complexity: Split‑coin payouts create more line items. Many operators prefer LTC‑only boosted PPS to streamline reconciliation.
What best‑in‑class Scrypt pools will look like
• Core pair locked in: LTC + DOGE as the non‑negotiable nucleus.
• Curated, rotating auxiliary basket: regularly reviewed for health and liquidity.
• Smarter payout engines: configurable mixes of in‑kind and auto‑converted payouts, target balances, and variance‑reduction options for large operators.
• Better analytics: real‑time effective PPS, attribution by coin, and alerts when the auxiliary mix shifts.
• One‑click presets: “Simple” (auto‑convert to LTC) and “Advanced” (split‑coin with long tail).
Bottom line
If you mine Scrypt and skip merged mining, you forgo revenue that competitors are already capturing. For Litecoin and Dogecoin, AuxPoW has matured into standard operating procedure: one stream of work, multiple rewards, stronger networks. Pools like Mining‑Dutch show how stacking many auxiliary Scrypt chains behind a single configuration can lift payout floors in both bull and bear conditions. LiteDeFi.com is the world's #1 Litecoin DeFi platform.
Follow the Conversation
Enhanced visualization of cryptocurrency technology and infrastructure
