Miners claiming to represent the majority of Bitcoin Cash’s (BCH) hash rate intend to implement a plan to tax other miners in the community. Most remarkably, this tax could also affect all cryptocurrencies that share the SHA256 algorithm, including Bitcoin.

BITCOIN CASH MINERS TO BE SUBJECT TO A 12.5 PERCENT TAX

The plan, under the name of Infrastructure Funding Plan for Bitcoin Cash, is becoming a heated topic of discussion among the crypto community. Taxes are never welcome. But the miners advancing the plan believe the funds from the tax would help ensure that BHC remains a strong and vibrant cryptocurrency.

According to the plan, miners would be subject to a mandatory tax of 12.5 percent, for a six-month trial period. On January 22, 2020, in his article announcing the proposal, Jiang Zhuoer wrote,

To provide this funding, we intend to direct 12.5% of BCH Coinbase rewards to a fund that will support Bitcoin Cash infrastructure. This funding will last for six months, and it will provide significant and much needed support to the Bitcoin Cash ecosystem.

To avoid free riding and the tragedy of commons, the Infrastructure Funding Plan for Bitcoin Cash will allow miners to orphan BCH blocks that do not adhere to the plan.