A mining tax (IFP) slated to be levied from November on Bitcoin Cash miners has run up against a wall of opposition. Those operating in the Bitcoin Cash environment are more or less firm in their demand to reject the proposal of implementing the controversial tax in the upgrade scheduled for November. This trend has been gathered from the text messages that have surfaced in the blocks recently mined.
The Bitcoin Cash mining process is primarily about solving complex mathematical puzzles. Miners play a vital role in the crypto community as they are responsible for mining and putting new coins into circulation. Miners are paid substantial rewards for mining a block of transactions, which is now 12.5 BCH plus all the transaction fees within the block. If enforced in November, the mining tax will be sizeable, given that the reward to miners is quite high.
The Bitcoin Cash miners ultimately have two key choices.
One is the Bitcoin ABC, which will reallocate 8% of the rewards to the miners through an Infrastructure Funding Plan (IFP). The next is the BCHN, which is against the mining tax and will give all the rewards to the miners.
Presently, the miners have not come out clearly for or against the tax or even about the blocks that are mining broadcast statements on the node being used. However, a trend on acceptance or rejection of the tax is being noticed in each block’s Coinbase text. It is seen that many companies like Binance, OKEx, Bitcoin.com, and Btc.top have thrown their support behind BCHN.
The main protagonist Bitcoin.com is against the tax, and that makes it critical. In a statement, it said, “We will not be mining with any Bitcoin Cash software that implements the IFP feature in the November 2020 network upgrades.”
Besides Bitcoin opposing this tax, some non-mining companies have also openly expressed their disenchantment, including SPL Foundation, Bitcoin Cash’s custom token layer. It is true that these companies do not have a direct say in Bitcoin Cash; however, their resistance will sway the miners to oppose the IFP for compatibility reasons, if not anything else.
Read.cash, Membercash, and Lazyfox, three social media platforms, have also opposed the plan.
This opposition does not mean that the coin will be split in November as there is no guarantee that the new fork will be profitable.