Quoting original submitter at https://bugs.debian.org/696851:
launchy currently saves its config file (launchy.ini) and database
(launchy.db) in the users home dir not even bothering to save them as
dot-files. This is not nice.
The best thing IMHO would be to conform to the XDG directory specification[1].
[1] http://wiki.debian.org/XDGBaseDirectorySpecification
Thanks,