Funding open-source software (OSS) is notoriously challenging due to inadequate financial incentives for developers.
Since blockchain relies heavily on software, this field faces similar funding challenges. Communities are actively exploring solutions.
The Ethereum project has sprouted Gitcoin For example, the rise of a popular grants dApp highlights one approach. Zcash Founders’ Reward This marks another effort towards sustainable funding for OSS, although it's not free from debate.
Now, the Bitcoin Cash ( BCH The Bitcoin Cash community is making its own funding strides as a leading mining group introduces an Infrastructure Funding Plan proposal allocating 12.5% of block rewards over six months to a Hong Kong-based firm dedicated to Bitcoin Cash infrastructure.
BTC.TOP CEO Steps Forward
On January 22nd, BTC.TOP's CEO, Jiang Zhuoer, shared insights on a temporary funding approach his group supports for Bitcoin Cash development.
Major mining pools like BTC.TOP, Antpool, and Bitcoin.com are lining up a 6-month donation initiative to ramp up BCH development efforts ahead of the forthcoming bullish market in 2020–2021/22.
This proposal carries weight, considering BTC.TOP's influence within Bitcoin Cash.
To break it down, Zhuoer estimates an ambitious funding pool of $6 million USD, based on a current price for BCH.
If BCH remains at around $300 per coin, diverting 12.5% of the rewards for 180 days could generate approximately $6,075,000, substantially impacting Bitcoin Cash's development landscape.
Indeed, $6 million for focused BCH development across six months far surpasses current offerings. Zhuoer envisages this capital to support 'key node and infrastructure contributions.'
Should these advancements materialize, Bitcoin Cash's market presence could significantly rise, according to Zhuoer.
He anticipates that BCH will advance strongly, predicting the BCH/BTC price ratio to surge from 4% to 10% or even 30% and higher.
Ethereum's Vitalik Buterin Weighs In
In a series of tweets, Ethereum's founder weighed in on the BCH funding strategy. Vitalik Buterin Buterin points out a paradox: BCH emerged to champion changes via soft forks perceived as 'voluntary' yet is now pursuing a controversial soft fork under voluntary pretense.
Yet, as Buterin notes afterward, the approach aligns with BCH's ethos, encouraging miners to push consensus rules by challenging incompatible blocks, ideally settling into rules the consensus supports.
This BCH funding endeavor isn't surprising, but it's an intriguing development in the cryptoeconomy, drawing wide interest.
Success here might inspire other projects to adopt similar funding strategies.
William M. Peaster, a seasoned writer in Ethereum and Bitcoin circles, features in outlets like Blockonomi and Binance Academy. He's engrossed in smart contracts, DAOs, and more, and is delving into Solidity! Connect on Telegram via @wmpeaster.
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