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Mythbusting: IFP is the best fund option

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Avatar for BitcoinCashThoughts
11 months ago
Topics: Mythbusting

BitcoinABC (BCHA) say that with Infrastructure Funding Plan (IFP) called the coinbase rule, which reinvests 8% of each BCHA block reward to fund future development will help BCHA scale to become sound money for the world.

Bitcoin Cash (BCH) supporters, on the other hand, believes that IFP is a "Statist's solution to funding" and voluntary donation model can help fund infrastructure to allow Bitcoin Cash to thrive and succeed.

So why the difference in opinion?

To answer this, we need to explain the technical differences between BitcoinABC's coinbase rule and Bitcoin Cash's voluntary funding model.

On January 23, 2020, the Infrastructure Funding Plan for Bitcoin Cash was published by Jiang on medium. The IFP proposal was strongly opposed by the community and all the discussion around the IFP was extremely stimulating. A group of developers created a fork version of the ABC software without the IFP called Bitcoin Cash Node (BCHN). Flipstarter, during that time was also born and carries the idea of voluntary funding.

During the launch of Flipstarter, there were 6 historical campaigns. BitcoinABC being unable to receive enough support from the community to raise a successful flipstarter pursued its own way and forked from BCH last November 15, 2020. Bitcoin Cash ABC (BCHA) was born.

The Separate Ways

BCHA pursued IFP, every 8% of its block reward is reinvested to fund future network development.

Building the BCHA Network

This is what IFP have achieved.

[ Note : There is no report for December 2020, so currently this is only the public information available ]

BitcoinABC November 2020 Income

286.5612936 BCH

265.939859415 BCHA

BitcoinABC November 2020 Expenditures

416.408549 BCH

Bitcoin Cash (BCH), on the other hand, continues to build through voluntary funding model

Building the BCH Network

And some other successful flipstarter campaigns here.

Bitcoin Cash's voluntary funding have successfully funded 47 projects and raised 6021.73 BCH (at the time of writing)

Deassembling the Myth, IFP is the best fund option

https://read.cash/@tula_s/flipstarter-vs-ifp-b0a9915f

The IFP is simply not the best fund option because it is not. Voluntary funding model have shown that it can do a lot to

secure a bright future for Bitcoin Cash

through voluntary funding. It had also provided

an adequate level of stable funding

to developers, holders, miners and pools, and anyone who wants to organize a fundraise so that

Bitcoin Cash remains a strong and vibrant cryptocurrency

which are originally the goals stated in the IFP's proposal introduction.

________________________

REFERENCES

https://medium.com/@jiangzhuoer/infrastructure-funding-plan-for-bitcoin-cash-131fdcd2412e

https://read.cash/@tula_s/flipstarter-vs-ifp-b0a9915f

https://blog.bitcoinabc.org/2020/12/30/our-transparency-report-for-november-2020/

https://flipstarters.bitcoincash.network/#/completed (thank you @Omar for helping me find this)

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Avatar for BitcoinCashThoughts
11 months ago
Topics: Mythbusting
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Comments

The king dragged his feet for years complaining about lack of funding. His solution removes the sound money aspect, so disregarding the purpose, it was totally inconsistent with the idea of bitcoin.

Starting with a small amount of Myth hunter votes, until I have read all the articles.

30 votes +30 votes

$ 0.00
1 month ago

we have to be wise...

$ 0.00
11 months ago

Thanks for this article

$ 0.00
11 months ago

I doubt anyone claims IFP is the "best" and I am sure the ABC implementation of the IFP is not the best possible funding strategy. So, the myth you claim exists is now a busted myth.

That said, we tried the voluntary method and it failed to provide results quickly enough. I believe that because the battle to block the IFP was raging, many donations flowed in to support blocking that funding mechanism. Time will tell if the voluntary system works better than it did in the past after the heat of battle dissipates. I hope it does. Flipstarters allowing targeted funding should help with things people want to fund.

$ 0.05
11 months ago

I doubt anyone claims IFP is the "best" and I am sure the ABC implementation of the IFP is not the best possible funding strategy.

Honestly, I also doubted that at first. But since @SofiaCBCH had it listed, she must have done research. So, I tried to bust the myth. I won't argue if it is busted already. Also, I have to agree with the many points you have stated. No one knows. I somehow honestly wanted to compare the 1 month success of IFP and Flipstarter (voluntary funding) but I think it is not viable. We can really tell as time passes.

So do we need to leave this still a myth?

$ 0.00
11 months ago

Thanks. Got my tokens

$ 0.00
11 months ago