Bitcoin Cash Companies Are Opposing IFP Tax Proposal

Many Bitcoin Cash companies such as mining pools, are opposing the latest BCH IFP tax proposal that is planned for November this year. BCH will likely not activate the tax during the upgrade but let’s find out more in today’s Bitcoin Cash news.

It’s not clear whether the Bitcoin Cash will fork and create a new coin as a result of the division. The companies in the Bitcoin Cash ecosystem have rejected the plans to add the controversial mining tax during the upcoming November upgrade as evidenced by the text fragments that are included in the mined blocks. BCH miners have to choose to run a specific node implementation and there are two choices. The Bitcoin Cash companies are opposing the proposal while the miners have to choose to run a specific node implementation such as the Bitcoin ABC that plans to redistribute 8% of the mining rewards via the Infrastructure Funding Plan and the second one are BCHN which opposes the plan and wants to give rewards to the miners.

Most mining pools have not made an explicit statement about the preferences as the blocks that they are mining broadcast the statements about which node is used. Many Bitcoin Cash companies including Bitcoin.com, OKEX, and Binance are showing support for BCHN in each block’s text. Most notably, Bitcoin.com is opposing the tax:

 “We will not be mining with any Bitcoin Cash software that implements the IFP feature in the November 2020 network upgrades.”

A few non-mining companies also announced explicit opposition to the IFP including three social media platforms including Lazyfox, Membercash, and Read.cash. These companies don’t have direct power over Bitcoin Cash but their opinion could encourage miners to oppose the tax proposal. There are only a few BCH groups that are opposed to IFP as the BCH miners have historically leaned towards ABC nodes. As the charts show, ABC’s latest consensus rules caused miners to turn to BCHN. The new rules will not take effect until November but it is likely that the distribution of miners will lean to BCHN at that given time.

As for whether there will be a fork of the coin, the IFP proposition does not necessarily determine whether the coin wills split in November. A heavy opposition usually means that a fork will not end up profitable.