Update on Developer Funding
The new developer funding proposal got off to an interesting start, to say the least! Though the conversation didn’t open up in the most productive way, we’re now having the conversations we need to have.
If anything, the bumpiness over the last few days is all a reminder that these are difficult questions!—how does development get funded on a decentralized currency and what’s the process by which we decide this and make it happen?
We participated in this process because we know that developer funding is an important issue to solve and that a proper funding mechanism will help Bitcoin Cash continue to grow as fast, reliable cash for the world.
Here is a quick update on where things are at Bitcoin.com.
As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible.
We think it is clear that the existing proposal does not have enough support, and we will be working to come up with a plan that is profitable for all the relevant parties and which preserves the fundamental economics of Bitcoin Cash.
Keep sharing your thoughts online. We read them all.
This is a great opportunity for developers to clarify what they need funding for, and provide the specific budgets and timelines they have for their work.
We think the lack of clarity in this is one of the main drivers of confusion and contention around the various funding proposals.
In venture capital, investors do not find talented technical individuals and hand them money to "do something." Rather, those individuals put together business plans with clear roadmaps, timing estimates and resource requirements that allow the investor to make rational decisions with their money. In business, you do not begin with a pot of money then figure out something to do with it. You begin with an idea of what needs to be done and then allocate funds to achieve it. This makes all parties involved more accountable and more efficient.
Developers in need of funding should put together clear funding proposals soon and publicly before any specific proposal is agreed upon. Likewise, miners and businesses should make clear to developers what they need for Bitcoin Cash to be more valuable for their business. This type of discussion is the only way any funding proposal should begin.
It may be the case that after we have some real concrete numbers to look at, new possibilities for funding open up, or that the community will be more receptive to one of the existing options.
Protocol development in Bitcoin Cash is an important temporary phase to prepare for global adoption and as such, a funding proposal must be temporary.
A permanent proposal would be in effect a carte blanche on development and would incentivise “development for development’s sake,” which would defeat the purpose of the fundraising and is entirely against what ought to be the goal of the whole Bitcoin Cash ecosystem: to create fast, reliable, digital cash upon a stable, largely unchanging, economically rational Bitcoin protocol.
No proposal should put this goal at risk.
The reason funding discussions are taking place is because proper funding will strengthen the Bitcoin Cash ecosystem, but it cannot come at the expense of compromising the foundational goals of Bitcoin Cash.
Bitcoin.com will not risk a chain split or a change to the underlying economics. In order to do this, any proposal will need to have as many people of economic weight on-board as possible, including businesses, exchanges, miners, and Bitcoin Cash implementations.
We're excited to continue the discussions.