It appears Bitcoin Cash (BCH) is about to go off the decentralization path. There is a new proposal that will tax all Bitcoin Cash (BCH) miners 12.5%, with all funds being diverted to a ‘development’ fund. This amounts to 112.5 Bitcoin Cash (BCH) per day, or $7 million in 6 months, forcibly taken out of miner’s pockets and given to a centralized organization.
If this proposal passes, the plan is to orphan the blocks of any miners who do not comply.
Therefore, this will make Bitcoin Cash (BCH) centralized in at least a couple of ways. First off, miners will not be given a choice and will be forced to comply with this scheme even if they disagree with it. Second, the $7 million of diverted money will end up creating a powerful organization, and it seems likely this organization will control Bitcoin Cash (BCH) in a centralized way.
Further, there is nothing to stop this tax from becoming permanent past 6 months, and the tax could even be raised.
Unfortunately, it appears this proposal will become part of Bitcoin Cash’s (BCH) code sometime soon even if it is ridiculously centralized since the CEO of the largest Bitcoin Cash (BCH) mining pool created this proposal. Even if no one else agrees, this pool can single-handedly force Bitcoin Cash (BCH) to adopt this proposal.
Zooming out, it seems this proposal is creating ripe conditions for yet another Bitcoin Cash (BCH) fork or for miners to abandon Bitcoin Cash (BCH) and mine Bitcoin (BTC) instead, or perhaps a combination of both.