Monday, 17 February 2020

BCH miner tax: ENDGAME

BCH Investor here, I'm strongly opposed to the IFP dev mining tax proposal for several reasons. Fundamentally, this alters the incentive structure and game theory for ALL BCH miners, without their permission. Yes there is a "vote" to signal it, but I predict with a high degree of likelihood that there will be a LOT of dissent about this proposal and hard fork. As others have said, miners have the opportunity to donate to the dev team of their choice at anytime, without coercion or bias. And in the past, miners have done exactly this.

From a development perspective, the tax is an absolute nightmare: there are so many spectacular ways this fork could fail, I don't know where to start. I think it's highly likely that BU will release node software that ignores the compulsory mining tax. This will almost certainly cause chaos in the BCH mining ecosystem - there will be several blockchains contending to extend the BCH chain and thereby keep the ticker and the wealth stored in that chain. This is practically begging Craig Wright to direct his BSV mining farms to a hostile fork of BCH (likely whichever fork does the most damage, or maybe alternating back and forth for maximum fun). Then we'll have big price fluctuations as the Coretards and SVtards pile on social media with the FUD and schadenfreude. Probably some replay attacks from taxing miners. Network consensus will be FUBAR for days. Even if the tax is rammed through, BCH will be forever tainted by a dev/mining collusion - in a short time this corrupt process could and will likely be used to alter BCH mining incentives, or even coinbase rewards!

Apparently ABC node code has a "hook" that requires miners to hard fork in May, but this "hook" will likely be removed by an enterprising dev, either in the current release, or in the next production release of the ABC code. Which leads us to the conclusion that ABC team will keep their code SECRET, only giving it to select miners who they're colluding with.

Seeing how risky this IFP is, I can only conclude that there is a secret reason why it "must happen". It's just not worth getting $6 million for development despite the credible risk of destroying $1 billion in value. I can't imagine Roger, Jonald, Vin, and Amaury all agreeing on this bizarre idea without an ulterior motive. If somebody wants to tell me what that reason is, I will reconsider dumping my BCH bag, but I can't sit by idly and watch BCH destroy itself!

submitted by /u/wtfCraigwtf
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source https://www.reddit.com/r/btc/comments/f5447e/bch_miner_tax_endgame/

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