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Bitcoin Cash to Add Dev Tax in New Software Upgrade. Will Crypto Exchanges Stop This Takeover?

Sun, 02/16/2020 - 11:00
Alex Dovbnya
Bitcoin (BCH) might be facing a developer takeover if the updated infrastructure funding plan proposed by Amaury Séchet gets the go-ahead
Cover image via freepik.com
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Bitcoin ABC developer Amaury Séchet recently published an updated version of the miner Infrastructure Funding Plan (IFP) that was first introduced by BTC.TOP founder Jiang Zhuoer. 

It will be implemented in the forthcoming 0.21.0 release of the Bitcoin ABC software that is expected to take place on May 15. The protocol change has to be activated by miners via BIP9.     

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Issuing money for developers 

The major difference in his proposal is the reduction of the developer tax to 5 percent (the original amount was 12.5 percent). The rationale behind taking a sizeable chunk of miner rewards is the necessity to develop the software infrastructure of Bitcoin Cash.    

"As a project, Bitcoin ABC believes that stable funding of Bitcoin Cash software infrastructure is vital to the success of the project."

Those funds will go an opaque list of whitelisted projects, which might be the second most controversial thing after the tax itself.

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According to Peter R. Rizun of Bitcoin Unlimited, Séchet plans to modify the protocol to mint coins for himself, calling his proposal "a poison pill." If exchanges move forward with his plans, the coin could be "captured" by third parties.       

There are community members that go as far as calling this proposal "a robbery" and urge exchanges not to support it. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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