Proposed Infrastructure Plan For Bitcoin Cash

Crytpo and Bitcoin Market Cap Story of Day

Crytpo and Bitcoin Market Cap Story of Day

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CRYPTO STORY OF THE DAY

Yesterday, Roger Ver's Bitcoin.com Announced They Had Pulled Their Mining Pool's Support Of The Upcoming Bitcoin Cash (BCH) Block Reward Development Fund Proposal - The Firm Cited The Need For More Broad Consensus Around The Plan From The Community - We Are Surprised That Many Key Questions Were Unanswered Before The Initial Announcement

On Friday, we outlined the proposed 'Infrastructure Plan For Bitcoin Cash.' Ultimately, the plan called for 12.5% of every BCH block mining reward be pooled into a fund. The proposal was supported by 4 major mining pools who at the time were responsible for about 25% of BCH blocks mined. Since the announcement, the response has been fractured. Many in the ecosystem's Twitter community suggested that a fork was inevitable. Ver, in his address, presents the Plan as a benign attempt to try to fund development. He concedes, however, that the response has been too likely to result in a contentious fork so he cannot support the Plan until it has become more consensus. The other 3 miners, who initially signed on, have not announced a change to their intentions.

Crypto Takeaway: We're surprised that such a response from the community was not foreseen. Even if BCH miners were to agree in concept, there were important details lacking from the proposal, including who would control the fund and what development/projects it would be used for. Furthermore, while the Plan included a 6-month trial period, it was never explained how this period would be reversed were it to result in a fork. The story here is not over yet. Other miners who signed the proposal are yet to comment. Furthermore, while it could be a coincidence, BTC.TOP, the CEO of which wrote the initial proposal, has increased its hash to have now mined 35% of BCH blocks over the last 24-hours (chart).

CHART OF THE DAY:
Bitcoin Cash (BCH) Blocks Mined By Pool - While it may be a coincidence, the company who's CEO authored the initial infrastructure funding plan BTC.TOP has increased its mining on BCH...

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FRNT Financial is a technology and sales layer that offers Institutional and Accredited Investors access to various forms of exposure to crypto-assets.