Sign of the times or delirious whiff? Some of the main headliners behind Bitcoin Cash (BCH, fork of Bitcoin) have just submitted the idea of a 12.5% “provisional tax” for 6 months that would be paid by blockchain miners. This tax would feed a company working on the development of the project and will be implemented via a soft fork on May 15.
Unsurprisingly, the community immediately reacted to this proposal, mostly by denouncing a step back and an incentive to centralize.
Death and crypto-taxes
VIP’s Bitcoin Cash (BCH), Jihan Wu, CEO of Bitmain, and Roger Ver, CEO of Bitcoin.com, proposed on January 22 an “infrastructure financing plan” to guarantee the sustainability of the BCH project. This plan is both simple and unprecedented in the crypto ecosystem : after its implementation, minors will be forced to return 12.5% of all their block rewards to a Hong Kong entity. Roger VER has just re-invented the concept of compulsory tax.
The post Medium published by the CEO of the mining pool Btc.top, Jiang Zhuoer, underlines that the proposal is supported by Jihan Wu, which controls the pools Antpool and BTC.com ; Haipo Yang, of ViaBTC ; and the controversial Roger Ver, CEO of Bitcoin.com. To them all, it is not less than 27% of the hashrate of BCH who are thus represented.
Among the “innovations” to which BCH seems to be moving, not only would the tax be introduced, but a system of sanctions would appear to bring in the ranks of possible refractory miners. Mined blocks considered as “non-compliant” would become orphans and would be excluded from the main channel. And if you find it looks like a component 51% attack, know that you’re not the problem.
Ah, and all of that will be introduced into the protocol during a soft fork on May 15.
Bitcoin Cash community in shock
These provisions violent so many rules usually considered immutable in the industry, that the reactions were quick. Vitalik Buterin, dad of Ethereum reported all the good he thought about it:
“It’s worth noting the irony: BCH, a blockchain that was born in response to an ideology that claims that soft forks are the only legitimate way to effect change because they are” voluntary “…. decides to make a controversial soft forks and then imply that he was voluntary ”
As for the Bitcoin Cash community, in addition to the significant shortfall that these new provisions will entail, it is alarmed by the concentration of power in the hands of the Hong Kong entity that will manage the fundraising. Note that it will not be a foundation – as is customary – but from a good old private company.
And the duration limited to 6 months which is currently announced (supposed to bring $ 6 million developers) don’t convince anymore. In the context of exchanges on dedicated forums, some point out that the US federal income tax was also presented as “provisional” at the start…
In summary, the whole thing very much resembles a sort of putsch that does not pass, but then not at all within a community that wanted to distance itself from the governance of Bitcoin, precisely considered to be too authoritarian… A hard fork would be it in sight for the Bitcoin hard fork?
Nice to meet you, it’s Hellmouth! Editor-in-chief of , the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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