The issue of miners donating to developers in the Bitcoin Cash ecosystem has been a controversial topic a very long time ago. It’s obviously impossible for developers to develop freely forever. A corporate donation mechanism was devised, but not without a problem.
The first problem discovered was the influence of corporate donors on the developers. In terms of commitment to bear the cost for community development, only a few companies have lived up to the expectation.
Setup Funding Plan for Bitcoin Cash
In order to ensure that Bitcoin Cash remains as relevant and vibrant as ever, the group of miners that represents the majority of identified Bitcoin Cash hash rate has shown stern interest in the development.
The group stated that it recognizes that investment in software and commons is very important to save the future of Bitcoin Cash.
For the funding to materialize, the group intends to send 12.5% of BCH Coinbase rewards to a fund that supports Bitcoin Cash infrastructure.
According to the group, the funding will take half a year. And it will strategically make provision for the much-needed support to Bitcoin Cash ecosystem.
Considering the hash ratio between BTC and BCH and the difficulty adjustments that maintain equilibrium, it is the entire set of SHA-256 mining, which includes BTC.
Amount and duration depend on the price of Bitcoin Cash (BCH), donating 12.5% of the Coinbase for 180 days. The plan will bring about a huge sum and it will impart the Bitcoin Cash ecosystem positively.
In order to properly disperse the fund, a Hong Kong corporation has been arranged to legally accept and disperse funds. These funds will be diverted to pay for the development contributions to full node implementations, coupled with other important infrastructures.
The feature is supposed to be activated at the same time, or better still, in conjunction with the upcoming protocol upgrade.
This will enhance a consistent release among ecosystem participants. This implies that the code has to be read as soon as possible for proper testing and deployment.
The group also promised to work hand-in-hand with various Bitcoin Cash node implementations to add code to implement verification of the funding. It should also be part of May 2020 protocol.