An open, neutral, borderless cash protocol should not have a privileged account that gives a central entity the ability to extract money from the protocol. [Read]

Once's the large miners are in control of this privileged account which has the ability to extract money from the protocol, mark my word, it will never go away.

"But the developers do good work and deserve to be paid"

If the devs want to be paid, they should set up a donation system. It's works for Monero. The devs submit a proposal, people donate, the devs are paid for 3-6 months of work then do it all again.

If they don't want to rely on donations and want to be paid via the block reward, then their should be a properly decentralized DAO, much like Dash. In which the dev team can submit a proposal for funding, people vote on the proposal and if it passes, then the devs get the money they've requested. If people vote against it, no money is paid.

There are many ways to fund a dev team, but creating a special, privileged account that allows for the individual with the key to skim money from the block reward, regardless of whether or not they contribute anything of value is *not* the way to do it.

"But the miners can dissolve the special account"

Have you ever considered that once this funded, privileged account exists, it will be far too valuable to ever remove? What's to stop miners and/or devs from spiting the profits from this privileged account? It's a win-win for them.

What happens if the large miners say "Give me a cut of the 12% or we will remove it entirely"?

What happens when large miners profit from mining rewards + a cut of the 12%? Small miners who don't receive a cut of these extra funds can't compete and leave. Then the only miners left are those in control of the privileged account and they gain full control of the chain.

This is one possible outcome. There is a large number of possible outcomes, and almost all of them are bad. While at the same time there is 1 possible positive outcome - it works as expected. I doubt it.

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"but they are in it for the good of Bitcoin Cash, they wouldn't take advantage of the system"

Are you asking me to trust them?

This proposal is absolutely ludicrous and I'd go so far as to question the motives or intelligence of anybody who supports such a proposal. The odds of this being good for the chain are slim.

submitted by /u/UnknownEssence
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source https://www.reddit.com/r/btc/comments/etjj9n/an_open_neutral_borderless_cash_protocol_should/