After more than ten days of heated public discussions on Jiang Zhuoer’s initial BCH development funding proposal, an official update has been provided to the community. It touches on many of the finer details that appeared problematic in the initial draft.
As a start, the very willingness to be open to criticism and to respond to it in a rational manner is a major change of direction, compared to the initial “no debate” policy that the first proposal tried to establish. Given the fading support of the plan, and the unwillingness of its supporters, namely Bitcoin.com, to go through with a change that could potentially result in yet another community split, compromise in the new version is plentiful, and community support is evidently considered important.
In addition, despite the fact that a significant portion of Bitcoin Cash enthusiasts would be unhappy with any Coinbase redirection change, chances are that fine tuning some of the proposal’s details will open up many of its initial critics to the idea.
For example, the unaccountable Hong Kong-based corporation is now a thing of the past. Redistribution of funds will happen directly to one of a number of whitelisted Bitcoin Cash addresses, belonging to node implementations. The option of having multiple competing foundations dealing with the funds will also be present, but Jiang Zhuoer has clearly acknowledged the centralisation risks that having one single redistributing entity holds.
In addition, the ability to simply “burn” the coins will also be an option for miners unwilling to pick any of the presented options. This could be a considered a donation to all BCH holders via reduced inflation. The legality of such an approach and its potential to characterise Bitcoin Cash as a security have not been elaborated on in the announcement.
The new proposal also makes mention of the concept of “hashrate voting” – a controversial suggestion made last year by Javier González González, which is already live on production. Jiang Zhuoer would be looking for support by 2/3 of the miners before proceeding with the plan.
Finally, and perhaps of most interest to the wider cryptocurrency community, is the anticipation that the 12.5% Coinbase reward is unlikely to remain as high, given the “incoming bull market” that Zhuoer is taking for granted. In his predictions, as little as 1% of Coinbase rewards would be sufficient for development funding in 2021, which does project a price prediction of around $2,000 per BCH if the goal is set to the initial target $6,000,000 and the funding campaign remains active for the entirety of 2021.