It is that time again when Bitcoin Cash will undergo a hard fork. Such upgrades aren’t uncommon, as hard forks can introduce crucial protocol-level changes. This fork, however, may effectively create another network split.
More Bitcoin Cash Drama
Whenever a cryptocurrency or blockchain project introduces a hard fork, there’s a real chance the community will be split into two groups. Every time, there are supporters of the changes, and those who oppose them. It is a common trend among open source projects, and cryptocurrencies are no exception. That being said, the upcoming Bitcoin Cash hard fork may cause a bit of controversy.
On November 15, 2020, the new fork is set to go into effect. It all comes down to how the future development of this ecosystem will be handled. More specifically, the funding aspect of this equation. In the past, the Bitcoin ABC team contributed a lot of developments, and supports all latest improvements for BCH.
The community hasn’t forgotten about everything the Bitcoin ABC team has done over the years, However, the team now wants to introduce a “mining tax” of 8% per block. This share will help fund the future development of Bitcoin Cash. Working for free is never an option in this space, thus alternatives need to be found.
This “mining tax” will see funds transferred directly into the wallets of ABC developers. The plan is to stockpile the funds and only liquidate assets if payments need to be made. It is not an ideal nor elegant solution, but one the team thinks is the best course of action.
Will There be a Network Split?
It is not difficult to see why the current proposal is met with a bit of skepticism and hostility. Taxing miners by reducing their earnings to fund development is not an ideal solution. Additionally, there are BCH supporters who think 8% is far too high. A network split seems somewhat likely, although it remains to be seen how things will evolve.
Should a network split occur, there will be two types of Bitcoin Cash currency. Exploring this option as a BCH holder may be a gamble, as there may not be a fork after all. Poloniex is already opening markets with IOU tokens in case a split were to occur. Gambling on this outcome will often make people lose money, for obvious reasons. For now, it is best to await the outcome of the hard fork enforcement on the network.
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