A Bitcoin Cash upgrade that would mandate all newly minted blocks donate 8% to development is threatening to drive a hard fork in November.
Bitcoin ABC, the dominant implementation of Bitcoin Cash (BCH), has published a controversial new upgrade that BCH supporters must deploy prior to November 15 to facilitate changes to the crypto asset’s core protocol.
Lead developer Amaury Sechet said part of the reason for the new upgrade was to provide crucial development funding to allow Bitcoin Cash to compete with Bitcoin and Ethereum.
“In comparison, Bitcoin Cash is lacking in funding and the result is a poorly maintained infrastructure, highly dependent on the work of other teams such as Bitcoin Core’s, as well as poor developer tools.”
The update will introduce a new difficulty adjustment algorithm dubbed ‘ASERT’ in response to drawn-out block times, alongside a controversial feature that will reject all newly mined blocks that do not divert 8% of rewards to a wallet designated to funding ongoing development to the ABC protocol — dubbed the ‘coinbase rule.’
Sechet predicts that without the coinbase rule, BCH’s future is a “slow drift into irrelevance” but said the split in the community ran much deeper than this one issue.