Should there be a miners' tax when several mainstream projects are running out of money?

Should the BCH levy a miners' tax when several major development projects are burning out?
Block chain in vernacular

"A good taxman should consider paying taxes as pulling goose feathers. The best way to do this is to take the most goose feathers and minimize the pain of the geese." "-- jean baptiste corbett, French finance minister

Recently, if you want to talk about the two most popular events, the first must be Fcoin's bankruptcy (Or run away) announcement, and the second must be BCH. The miners' tax became a hot topic in the whole circle, which also put the BCH in the center of the storm. Many unidentified gourd eating masses, lively is to see a lot, but still in the clouds, the BCH miners tax, should not smoke?

01
Beginning and end of the event

Before we get to that, let's take a quick look at what happened.

1. Proposal: on January 22nd, lai bit ore ChiJiangZhuo publish a blog post, unveiled a "BCH infrastructure financing plan announced in BCH in May, a proposal is added to the upgrade of the BCH block reward of 12.5% over the next six months donated to the developer, and domineering yelling" don't cooperate with BCH mineral pools, solitary piece of you!"

As for the reason for such confidence, it is because wu jihan, Yang haibo and bitcoin Jesus support the proposal, and their combined calculation force of the mine pool is already more than half of that of BCH.

2. Objection: after the proposal was sent, opposition was inevitable. Some miners directly left a message on the chain saying "No!!" , some BCH developers have also put forward different views on the proposal. The BCH community has also seen a number of users express their opposition, especially to the fact that "four people decide" to tax BCH so much. What about decentralization?

3. Status quo: BCH chief Amaury takes a hard line - "ABC has generated over $1 billion in revenue for miners. What's wrong with the individual tax?

Roger V equivocal - "for the time being, Bitcoin.com will not support any plan unless there is more consensus in the ecosystem that will allow the risk of chain forks to be negligible."

"If there is too much opposition to the miner donation model, start with the Nobel Prize model," says troll kong.

02
Why proposal

The root cause is simple -- developers don't have the money! You can't always make the cows work and not let them eat the grass! Moreover, this is not the first time the BCH has suggested this.

At the BCH industry conference in Hong Kong in May 2008, a developer proposed to raise funds from the mine pool to develop the BCH project, which caused a great controversy, which was called by some opponents as a "jaw-dropping case of forced donation". When asked, "what if 75% of the budget voted to donate, but the other 25% disagreed?" the solution was the same as this time -- "the majority forced the minority to obey." of course, the proposal fell through.

Last June, BCH groups like Bitcoincash.org launched a total of 800 BCH ($350,000) donations, which took half a month to raise. Later, some BCH on the forum all kinds of drama, finally almost raised the target value.

The reason for this proposal is that apart from estimating that the development team is again facing the economic dilemma, the more important problem is that the big miners such as kondjol and Roger V want to find a long-term and stable way to support BCH developers. As we all know, BCH has been a model of community donation + part-time development since its birth, which may be OK in the short term, but it is not a long-term solution to compete with BTC in this marathon. The sustainability and stability of the funding model are not high, and the majority of developers are part-time, so it is difficult to focus all their efforts on development, which will affect the development progress and ecological process of BCH. Therefore, the lack of a long-term, stable, allows developers to ease development and money earn revenue model, is this a few BCH biggest stakeholders for a long time my heart a thorn, the "miners' tax", can be seen as an attempt, in other words, a "test", look at the time of unhairing, goose is how loudly.

03
What is the pros and cons

When it comes to pros and cons, it is actually a matter of opinion, and it is often the butt that decides the head. Both supporters and opponents in the BCH tend to fight for their own interests. Therefore, it is advisable to jump out of the circle of the BCH and look at the attitude of several other industry leaders towards the miners' tax.

Wright lee - safety first

Li qiwei thinks although you are a big man, but calculate force or not enough ah, BTC calculate force come to do you how to do? CSW is still in the eye covetous yao, he can strike at any time! Again, this is a very centralised decision! Bad influence!



"Now the miners' union has BCH network only about 28% of the work force, unless they call for more power, otherwise can't enforce this soft split ends. And this could lead to a lot of split ends, in the form of the mandatory increase such a centralized characteristics, will set a bad precedent. If the soft bifurcate through, it will be very unstable, because there will be a large BTC miners have the motivation to 51% attack. They can switch to BCH, then dig 11 consecutive blocks, and then they got all the BCH, This is at least 14 per cent more profitable than mining BTC.

V god - 2020 so mysterious? !

God V is a series of tweets expressing concern and disapproval.



"I have to admit, it hasn't even been a month since Mark Lutter called 'weird 2020.'"

"12.5 per cent of the overall award in the BCH block is directed from miners to 'a Hong Kong company'. The article marks it as a voluntary form, but in reality it is a mandatory soft fork."

"How does the purported Hong Kong company ensure that the money is used for development?"

"I don't agree with the idea of a market-for-consensus because it is poorly balanced and can easily lead to entrenched interests."

CSW - this is your income, not your donation

CSW is looking at this from a legal point of view --



"You can't" donate "to protocol developers and the like.

ABC and other things like Core are common law partnerships.

Any money you give them is income that should be taxed legally - they are not charities.

The money given to them, the money, the virtual currency, is not a donation, it's an income.

04
How do other projects address this problem

In fact, before you want to comment on the BCH case, take a look at a few other projects.

BTC -- when satoshi nakamoto first invented BTC, like many inventions, he spent money, built servers, wrote code, tested... Of course, he also quietly dug up millions of COINS, even though they seemed worthless at the time.

Since Mr. Nakamoto's retirement, bitcoin's decentralized nature has made funding for development a constant question. Gavin Andresen, tsonga's chosen successor, ran into financial problems when he tried to raise money in the community. It was not until later, with the intervention of external funds and forces, that the problem was basically solved. However, the development direction of bitcoin has also fallen into the hands of BlockSteam, the backroom financier, who insists on no expansion, adopts lightning network, BCH split and a series of historical processes, all of which are more or less related to the provision of relatively centralized development funds.

The ETH & amp; LTC -- ethereum began to raise 12 million pieces of ethereum, which was put into the ethereum foundation, which has been running relatively well so far. ETH has been in a state of "good money" due to the large increase of ETH.

The LTC, by contrast, is a bit bleakly run by the foundation, which, for the most part, has been plagued by a shortage of development funds as lee kai-wai, litecoin's founder, has donated 80% of its funds.

EOS & amp; BSV -- the underlying development of these two projects is relatively centralized, but the advantage is -- it's really good money!

EOS received more than 7 million ETH through a year's pre-sale, and then cashed out most of them at a high level, with tens of billions of dollars in hand. There really is a kind of want to hire who hire who, salary want how hair how hair capricious!

BSV's partner Calvin Ayre is A famous Australian billionaire. The company behind the development, Nchain, not to mention, has hundreds Of block chain patents. The maintenance cost Of the patents alone is said to be millions Of dollars every year.

Zcash -- which also has a developer fund and was founded in 2016 -- has what is known as a "founder award" -- a 20 percent block award from the miners, which is divided among Zcash's founders and investors and helps sustain the project for four years, ending in November 2020.

But it is this high rate of "tax taking", or sharing, that has kept Zcash under fire and on the back foot.

To make matters worse, Zcash will not have enough money to continue its research and development when the founder award is cancelled in a few months. Some time ago, Zcash passed an improvement proposal (ZIP1014) through governance, and still received 20%. However, the distribution mode of the ECC (Zcash development company) foundation and other parties changed, which was basically a change in the way of tax collection from miners to maintain the progress of project development.

The data shows that the current influx of developers in the cryptographic ecosystem is stagnant, while the vast majority of developers are in the bitcoin and ethereum ecosystem.

Cryptocurrency currently has around 7,000 active developers per month, compared with more than 4 million for NodeJS and 6 million for Android, so the industry is still too weak for talent.

The development of the project, the role of developers in it should not be low, but the final harvest is not the most, about this phenomenon, what do you think? Feel free to leave your thoughts in the comments section.

Source:weixin.qq.com

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