Roger Ver and Issue Statement Backing Away From Proposed 12.5% Miners Tax

Roger Ver’s is rejecting the 12.5% tax on mining because of the community’s overwhelmingly negative response to the proposal.

Focusing on Alterations

Recently, Bitcoin Cash (BCH) proposed a 12.5% tax on mining rewards that goes to fund network development but now it has rejected the proposal unless some alterations are made:

Focusing on the transparency, flexibility and unity suggests that a lack of ecosystem agreement risks a split in the chain, though they seem to fund further development, it states-

“As it stands now, will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible. We think it is clear that the existing proposal does not have enough support.”

“We will be working to come up with a plan that is profitable for all the relevant parties and which preserves the fundamental economics of Bitcoin Cash.”

The post proposed more flexibility and mentioned that-

“A permanent proposal would be in effect a carte blanche on development and would incentivise ‘development for development’s sake,’ which would defeat the purpose of the fundraising […] to create fast, reliable, digital cash upon a stable, largely unchanging, economically rational Bitcoin protocol.”

The Proposal Faced Harsh Criticism

Cointelegraph reported last week on the proposed tax published by CEO Jiang Zhuoer. The “infrastructure funding plan” would have miners send 12.5% of mining rewards to an entity in Hong Kong. The concerned entities repped 27% of hash rates. The proposal included “orphaning” non-compliant miners.

Critics considered the routing of funds to a corporation and the absenting of a voting procedure.  There are also complaints regarding Chinese government interference and profitability as the tax would affect miner revenues.

We still need to hear from Roger Ver as it reached out to hear from it but had not received any at press time.