BTC.top CEO Updates Views on Controversial Bitcoin Cash Proposal

BTC.top CEO Updates Views on Controversial Bitcoin Cash Proposal

By MinerUpdate | Miner Insights | 7 Feb 2020


This Miner Insights piece was originally published in crypto mining publication MinerUpdate.

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BTC.top CEO Jiang Zhuoer updates his views on the controversial Bitcoin Cash development fund proposal. The updated plan details that miners will contribute directly to development projects and proposes a vote to take place among BCH miners before the proposal is implemented.

Quick take;

  • Jiang Zhuoer updates his views on how to fund development in the Bitcoin Cash network
  • In the updated views, Zhuoer suggests that miners can contribute directly to development projects and also recommends that an entity similar to the Ethereum Foundation is established
  • Zhuoer also suggests that Bitcoin Cash miners vote whether the proposal should proceed and plans to set up a new mining pool to direct hash power in favour of the proposal pushing through

BTC.top CEO Jiang Zhuoer updated his views on a controversial Bitcoin Cash development fund plan. Zhuoer and several other significant Bitcoin Cash miners originally detailed a structure to be implemented at the May BCH upgrade where miners would allocate 12.5% of their block rewards to fund infrastructure development on the Bitcoin Cash blockchain. 

One of the more controversial elements of the proposal noted that Bitcoin Cash miners who do not comply with the proposal would have their blocks orphaned. Bitcoin.com, led by Roger Ver as CEO who co-signed the original plan, has since withdrawn their support given the lack of widespread support for the proposal.

Read more: How would a Bitcoin Cash Block Reward Tax Impact Bitcoin Miners?

UPDATES TO THE BITCOIN CASH DEVELOPMENT PLAN

The initial proposal planned for the contributed block rewards to be sent to a Hong Kong entity where the funds would then be distributed to spur Bitcoin Cash development. Zhuoer now proposes that Bitcoin Cash miners contribute directly to development projects as an alternative. 

In this manner, BCH miners can split their contributions, sending x% to one development project and y% to another. Scrutiny over how the Hong Kong entity would distribute the funds likely motivated this update.

Zhuoer notes that if BCH miners do not wish to contribute to any development projects, they have the option to send their BCH to a black hole address. This will destroy the coins sent to the address and reduce the total supply of BCH.

Zhuoer also recommends that entities similar to the Ethereum Foundation are established. Zhuoer plans to pilot a BCH Miner Fund entity where miners can vote on where to direct funds with voting power in proportion to their donations to the fund.

NEXT STEPS – BITCOIN CASH MINER VOTE & NEW MINING POOL

While the initial blog post read as if those miners who co-signed it would force the proposal to be implemented, the updated view proposes that miners vote on the change with their hash rate. The proposal details that BCH miners vote with their hash rate for a period of three months. It further details that if two-thirds are in favour of the development fund structure, developers consider including the change in the May 2020 BCH protocol upgrade.

Zhuoer personally plans to set up a new mining pool where he will direct his personal hash power and seek to convince other major miners to join. Zhuoer plans to set up this separate mining pool with the main objective of pushing through the updated development fund proposal.

The new mining pool would consistently direct its hash power at BCH to vote for pushing the proposal through, even if the Bitcoin or Bitcoin Cash SV networks become more profitable to mine. Zhuoer notes that this will sometimes entail mining at a loss which would in conflict with the profit interests of BTC.top.


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