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Bitcoin.com rejects the 12.5% tax proposal

  • Bitcoin.com fears that a lack of ecosystem agreement may lead to a split in the chain.
  • They are presently working on a plan that is profitable for all parties and preserves the fundamental economics of BCH.

A few days back, some members of the Bitcoin Cash community proposed a 12.5% tax on mining rewards that would be forwarded to a funding network development. The proposal experienced a lot of resistance from the miners, and it looks like Roger Ver’s Bitcoin.com has also voted to reject the proposal. The company announced in a post:

As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible. We think it is clear that the existing proposal does not have enough support.

Bitcoin.com has asked for flexibility, transparency and unity. They fear that a lack of ecosystem agreement will result in a split in the chain. They also said that they are presently working on a plan that is profitable for all parties and preserves the fundamental economics of BCH. 

We will be working to come up with a plan that is profitable for all the relevant parties and which preserves the fundamental economics of Bitcoin Cash.

A permanent proposal would be in effect a carte blanche on development and would incentivise “development for development’s sake,” which would defeat the purpose of the fundraising [...] to create fast, reliable, digital cash upon a stable, largely unchanging, economically rational Bitcoin protocol.

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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