Miners Consider Using Bitcoin Cash Block Reward to Fund Development - Bitsonline

Miners Consider Using Bitcoin Cash Block Reward to Fund Development

A group of miners, mining pools and other community influencers met today in Hong Kong to discuss plans to fund Bitcoin Cash infrastructure development. Those plans could see a portion of the BCH block reward supporting the careers of professional developers, a model that has worked well for other cryptocurrencies such as DASH.

Also see: Beware the ‘Buy THESE Cryptocurrencies This Year!’ Columns

Subscribe to the Bitsonline YouTube channel for more great interviews featuring industry insiders & experts

A Formal Model to Fund Bitcoin Cash Infrastructure

Bitcoin Cash Hong Kong Meeting

Present at the Bitmain-sponsored meeting were representatives from ViaBTC, BTC.top, Antpool and Bitcoin ABC among many others, including well-known names like Bitmain CEO Jihan Wu, SBI Bits’ Jerry Chan, Electron Cash developer Jonald Fyookball and Roger Ver. Places were also reserved for nChain’s Jimmy Nguyen and Craig Wright, though neither attended in person.

Bitmain‘s Jiazhi Jiang introduced Bitcoin Cash’s four main goals: Innovation for the protocol; large block sizes; more infrastructure apps and developers/people; and being better at spreading the word. Other blockchain communities, like DASH and Ethereum, he said, were already active in their efforts to support development and promote awareness.

Fundraising was important to drive the latter two goals, Jiang added, since “outsiders don’t know how to join us” and the need to attract more professionals to a community that is not formally organized, or sustainable over the longer term in its present form.

Jiazhi Jiang of Bitmain
Jiazhi Jiang of Bitmain

The suggested model would have miners vote on specific development proposals via multi-signature transactions using their keys. A simple majority signaling support via code in OP_RETURN would trigger a release of the funds, while no code would indicate objection to the proposal. There’s no option to abstain from voting.

The proposal would include details on how much funding was required, and how much of the block reward would be used. The idea is for proposals to have a finite funding limit, rather than receive ongoing regular payments.

Bitcoin Cash t-shirt

Several Key Points Still Need Further Debate

Points of contention included just what percentage of the block reward should be used, and whether any at all would be a disincentive for miners to stay with BCH, driving them back to BTC. Suggestions were 5 to 10 percent, however Ver pointed out that as little as 1 percent could provide a healthy boost.

Another was whether such a model could become corrupted. Meeting participants appeared to favor supporting individual projects, rather than general BCH groups or foundations.

What would happen if one mining pool, acting maliciously or otherwise, could “attack” the system by voting for an expensive project, then withdrawing to BTC in order to avoid funding the project itself.

Bitcoin Cash Hong Kong Meeting

Wu and Ver both said Bitcoin Cash’s dynamic hash rate would guard against that. “We shouldn’t underestimate the advantage that is,” Ver noted, while Wu said it’s always easy to switch back — but added that maybe there should be a set upper limit for funding proposals.

Commenting that he was surprised and pleased to see the idea being discussed, Ver wanted to kick things off immediately — suggesting a smaller-sized trial fund, and backing projects such as protocol software Bitcoin ABC.

Amaury Sechet Bitcoin ABC
Bitcoin ABC’s Amaury Sechet

A ‘bComm Association’ for Community to Meet in Person

A second presentation, by Ayre Media’s Emmanuel Duran Campana, proposed an “bComm Association” for infrastructure developers, miners and merchants to communicate and meet in person on a regular basis.

Bitcoin Cash “is at war” with the competition (i.e.: other cryptocurrencies) and needed to band together and coordinate their efforts to promote BCH use.

The organized community, which should be independent of Ayres Media or any other company, would include forum groups and face-to-face meetings, possibly around conferences and social events.

Do these proposals sound like a good idea for Bitcoin Cash or any other cryptocurrency? Please share your thoughts in the comments.


Images via Bitsonline, Jon Southurst

Related News