Instead of securing voluntary funding based on what they actually deliver, ABC arbitrarily redistributing miners' rewards to themselves as guaranteed income would make it a central planning agency akin to a government monopoly. Such a monopoly would have reduced incentives to be efficient and write good code, because its income would not depend on its performance and there'd be reduced competition from other developers that it doesn't whitelist for funding from its coffers. Thus the IFP would lead to development stagnation.
Of course, investors can leave, and so there is some market price incentive to keep development going -- but Amaury himself said he doesn't care if the price crashes so long as he gets some guaranteed income as opposed to none (like a government still gets its taxes even if it strangles the economy). Besides, since he would have full centralized control, he could easily make the 'tax' more than 8% going forward.
As for miners, as many others have said, less monetary incentives for them means lower hashrate, less security, but also higher miner monopolization, as smaller miners are less able to absorb the 'tax' and stay profitable. (This kind of monopolization also happens with government taxation because large corporations can afford to lose more to taxation than small businesses).
Bitcoin is supposed to be a decentralized, competitive system to prevent a single point of failure that would leave it exposed to capture and attack by governments and other hostile entities, or simply incompetent developers. The solution is multiple implementations that compete for adoption and funding. That crucial market mechanism is exactly what the IFP breaks.
I again urge everyone involved in this plan to reconsider, to avoid breaking Bitcoin's decentralized nature and to prevent another messy fork.
I apologize if some of the phrasing is awkward, it's not my native language.
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source https://www.reddit.com/r/btc/comments/idtdtc/the_ifp_would_make_abc_a_private_centralized/
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