At the current price of BCH, the total investment would be around USD 6,000,000. The funds will be managed by a Hong Kong-based corporation.
The leading Bitcoin Cash mining groups (pools) approved the implementation of a fund to finance the network’s future development. For this reason, 12.5% of the rewards for block mining should go to said fund, according to a press release by Jiang Zhuoer, CEO of BTC.Top, one of those pools.
The executive explains that the intention is to establish “a fund that will support the Bitcoin Cash infrastructure.” The launch of this fund is based on the notion that “infrastructure financing can often be overlooked or not among the priorities,” he notes.
Apart from to Zhuoer, the text is signed by Jihan Wu, representing AntPool; Haipo Yang, from ViaBTC; and Roger Ver, the CEO of Bitcoin.com. In this regard, a corporation was established in Hong Kong to administer the funds, which will be used for contributing to developing full node implementations, as well as other critical infrastructure.
The plan will last 6 months, between May 15th and September 15th, 2020. During said period, the network’s participants that do not adhere to the plan will be punished. “BCH blocks that do not follow the plan will be orphaned,” the text says.
Among the most controversial statements in the note, the following is the most relevant as it clearly shows how the decision was made: “There is no master node vote or any other vote. This is a decision of the miners to finance the development directly.” In other words, the miners must irrevocably deliver part of their rewards as decided by the group.
The decision announced by the leading Bitcoin Cash mining pools has met with mixed opinions among enthusiasts and members of the cryptocurrency community.
Most of the positions are critical of a movement considered contradictory in a network supposed to be decentralized. For example, tweeter @VersusTheMan noted the fact that, if this group can orphan the blocks, “they have the power to censor their transaction.”
George Donnelly, former Dash representative for Latin America, defends the decision since it coincides with his current position in favor of Bitcoin Cash. Donnelly is even seeking financing from Bitcoin Cash, as he makes clear in another tweet about the new project.
In particular, he highlighted on Twitter that the miners agreed to something so controversial without first attending public summits since he considers that nobody there would keep their word anyway.
Also via Twitter, one of the best known Bitcoin Cash developers posted some questions to the new fund. Through his account @deadalnix, Amaury Séchet predicted the dissolution of the alliance between the pools that made the decision.
In Séchet’s opinion, the participants are competitors and are involved just because they are convinced that they have a common interest in doing so.
Financing Bitcoin Cash Development
Controversy aside, the new plan to finance the development of Bitcoin Cash adds to the fund announced by Roger Ver last November. The BCH Ecosystem Investment Fund plans to invest at least USD 200,000,000, which bitcoin.com will contribute this year to the development of payment solutions and financial services.
The main objective behind this fund is to accelerate the adoption of BCH as a tool. For that reason, the Bitcoin.com executive invited more investors to participate in various projects around Bitcoin Cash.
By Alexander Salazar