A controversial suggestion regarding the Bitcoin Cash miner tax will not take place according to the latest statements. Bitcoin Cash developers backed down from the idea after facing severe negative responses from the cryptocurrency community, which objected the proposal.
As a reminder, the main individuals behind Bitcoin Cash proposed a 12.5% tax on mining rewards last week that would be imposed to fund the network’s development. However, Bitcoin.com backed down from the forced tax issue seeing the proposed model’s current state and stated in a new 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.”
The platform expressed a clear need for unity, flexibility, and transparency. Moreover, Bitcoin.com added that a lack of unity would cause instability and risk the network being forked into a new blockchain. Nevertheless, they will look for other ways to fund the cryptocurrency’s development for the time being:
“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.”
In the end, the post concluded that the platform needs to be more flexible when it comes to the issue of funding. Per the post:
“A permanent proposal would be in effect a carte blanche on development and would incentivize “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.”
Crypto Enthusiasts Swiftly Rejected the Bitcoin Cash Miner Tax
The cryptocurrency community marked the last week by being majorly against the idea of imposing a Bitcoin Cash miner tax that would not be voluntary. Written by the CEO of Btc.top Jiang Zhuoer, the ‘infrastructure funding plan’ suggested that miners would spend 12.5% of their mining rewards to an entity in Hong Kong.
Furthermore, the article suggested that miners who would not comply with the new rule would end up being punished. Naturally, the significant lack of decentralization that this plan would impose set the scene for drama on Crypto Twitter.
Following the controversial tax plan, Litecoin founder Charlie Lee suggested that the Litecoin Foundation could be funded with a voluntary 1% tax, an idea that appeased most users.