Home Blockchain Charles Hoskinson's IOHK submitted a decentralized treasury proposal to the Ethereum Classic...

Charles Hoskinson’s IOHK submitted a decentralized treasury proposal to the Ethereum Classic community



Charles Hoskinsons IOHK submitted a decentralized treasury proposal to the

Charles Hoskinson’s IOHK recently published two Ethereum Classic Improvement Proposals, or ECIPs, meant to help the struggling chain recover after a slew of recent 51% attacks. The first introduced a checkpoint system to prevent the possibility of such attacks, and the second proposed a decentralized treasury — a seemingly divisive idea within the ETC community.

Following the recent attacks, a heated debate ensued concerning the project’s future. Hoskinson, one of Ethereum’s co-founders and a supporter of the ETC fork, believes that the way forward revolves around the institution of the decentralized treasury. The proposal suggests that the current method of funding has failed and it is time for a change:

“The current approach of relying on voluntarism and benefactors to support the ETC eco system has failed.”

 

Hoskinson’s Cardano (ADA) and several other major cryptocurrency projects have already successfully implemented a decentralized treasury, allowing for independently funded research and development. The difficulty is that most projects institute this sort of mechanism from the beginning. In the case of ETC, there are fears that the sudden shock of such a major change could lead to a decline in hash rate, putting the network at greater risk.

Terry Culver, the CEO of ETC Labs and one of the main stakeholders in the ecosystem, said in an email to Cointelegraph that he disagreed that the current system has failed:

A treasury will be the true sign of failure of ETC. You can’t build a decentralized public blockchain with a “money tree” that benefits a few. ETC Labs, the COOP and other members of the community will do everything necessary to secure the network.

Such a proposal would ultimately reduce the rewards miners receive for contributing to the network. These individuals would have to be convinced that the positive impact on the price of ETC will make up for the proposed 20% reduction in block rewards. 

The current reward, which is is 3.2 ETC per block, would be reduced to 2.56 ETC if IOHK’s proposal passes. This would leave a difference of 0.64 ETC, which would instead go straight to the treasury. Miners would also have the option to burn 20% of the block reward instead of donating it to the fund.

The initial distribution from the treasury suggests that 10% would go towards Gitcoin grants, with the remaining funds being divided amongst three development projects chosen by the community. These would each receive 30% of the allocation.

Culver said that ETC Labs is willing to work with IOHK for the betterment of Ethereum Classic, but will reject the treasury proposal:

“We do not support the treasury proposal, because a tax on miners will cripple the network. We would be asking miners to make 20% less on ETC when mining other chains is already more profitable. It will drive them away at the moment we need them, reduce the hashrate, and make the network more vulnerable. Long term, a treasury would essentially turn ETC into a private blockchain, with centralized governance and a monopoly on decision making.”

Charles Hoskinson told Cointelegraph that with the checkpointing system in place, the drop in hashrate will not matter anymore:

Sure we could get a short term drop, but we no longer rely upon them to ensure the system is secure.

He added that eventually the miners would come back as his proposal would foster ETC adoption and growth:

There would be a hybrid model in this case. Giving us time to rebuild interest and adoption, which increases the price much more than 20 percent bringing miners back. They aren’t voters, they are businesses

A virtual meeting of ETC core developers is scheduled for today to discuss various hard fork proposals, including IOHK’s checkpointing system.



Read orginal here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,579FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.17
GBP
1.29
CHF
1.09
NOK
0.11
JPY
0.01
CAD
0.75
AUD
0.71

Most Popular

How Crypto Seesaws Between Assets and Infrastructure

In the beginning, there was bitcoin. And with bitcoin, a new asset was invented. And with that new asset, the way we interact with...

Introducing ARK Migrator — Move Your ERC20 Token to Your Own Native Blockchain | by Ray.Alva | Sep, 2020 | ARK.io

The entire process is straightforward and can be done in three easy steps. By using the ARK Migrator’s frontend application a user will...

New Zealand Tax Agency Asks Crypto Firms to Hand Over Clients’ Personal Data

The Inland Revenue Department (IRD) of New Zealand has requested that crypto companies in the country hand over their customers’ personal details, cryptocurrency...

David Guetta secures deal with crypto-centered VR platform

Sensorium Galaxy, a not-yet-released virtual reality platform, has signed famous French DJ David Guetta. The platform hosts its own ERC-20 token, known as SENSO."In...
bitcoin
Bitcoin (BTC) $ 10,729.83
ethereum
Ethereum (ETH) $ 355.36
ripple
XRP (XRP) $ 0.240453
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 226.81
bitcoin-cash-sv
Bitcoin SV (BSV) $ 170.07
litecoin
Litecoin (LTC) $ 45.38
eos
EOS (EOS) $ 2.59
binancecoin
Binance Coin (BNB) $ 28.41
okb
OKB (OKB) $ 6.09
tezos
Tezos (XTZ) $ 2.18
leo-token
LEO Token (LEO) $ 1.26
cardano
Cardano (ADA) $ 0.098744
monero
Monero (XMR) $ 96.06
stellar
Stellar (XLM) $ 0.072871
chainlink
Chainlink (LINK) $ 9.76
huobi-token
Huobi Token (HT) $ 4.62
tron
TRON (TRX) $ 0.025813
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 67.26
neo
NEO (NEO) $ 19.33
iota
IOTA (MIOTA) $ 0.267985
nem
NEM (XEM) $ 0.117768
zcash
Zcash (ZEC) $ 59.14
maker
Maker (MKR) $ 513.35
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 5.36
vechain
VeChain (VET) $ 0.012756
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.63
kucoin-shares
KuCoin Shares (KCS) $ 0.875453
waves
Waves (WAVES) $ 2.43