Bitcoin.com backs out on mining tax

In the heated debate about a tax on mining revenues at Bitcoin Cash (BCH), the first damper has been put on the pro-tax movement. Bitcoin.com, the mining pool managed by Roger Ver, is withdrawing from the project. The reason given for the move is the predominantly negative feedback on the tax plans and lack of clarity in the investment plans of the developers. Last week leading BCH personalities demanded a tax of 12.5 percent on mining rewards.

On January 28, Bitcoin.com, specializing in the marketing of Bitcoin Cash, published a statement that the platform is no longer a supporter of the idea of a mining tax. Bitcoin.com is run by Roger Ver, a luminary of the Bitcoin ecosystem from the very beginning. The platform was created after the Bitcoin Cash Warehouse (BCH) was split from the original BTC Blockchain.

 

Mining tax planned as a fund

Previously, numerous Bitcoin Cash Miners proposed a kind of tax in the form of a fund to help stabilize the ecosystem. Thus, in addition to Roger Vers Bitcoin.com, the mining pools BTC.TOP, BTC.com, Antpool and ViaBTC were in favor of the idea. The levy should amount to 12.5 percent of the Mining Rewards. The reason given for the claim was necessary investments in the BCH infrastructure. In addition, a specially established office in Hong Kong would take over the administration and invest the money, for example, in working on full node implementations.

The mining tax has already caused a lot of controversy in the community. The proposal, originally initiated by BTC.TOP managing director Jiang Zhuoer, also provided for a de facto exclusion of miners who disagreed with the tax.

 

Bitcoin.com demands clarity and flexibility

“As it currently looks, Bitcoin.com will not go along with any plan until there is more unity in the ecosystem. In this way we want to minimize the risk of a chain split,”

writes Bitcoin.com in the notification. As one of the most important reasons for the criticism and confusion surrounding the funding proposal, the authors cite a lack of clarity with regard to investments. There is a lack of concrete business plans, time frames and financial calculations of requirements. Only in this way can investors make rational decisions and leave their money to the developers in good conscience in the form of the required mining tax.

 

Bitcoin.com further clarifies:

“Any funding proposition must be temporary and reversible.”

 

Furthermore, the proposal carries the risk that BCH developers will see it as a “development for development’s sake” certificate of cleanliness. However, this would contradict the ideal of Bitcoin Cash, according to the Mining Pool.