BCH mining pool operator revises crypto mining tax

Written by

Updated on Mar 11, 2020

Reading time 2 minutes

BCH mining pool owner recently announced changes to his former mining donations request.
Formerly, Jiang Zhuoer, the owner of BTC.TOP, wanted miners to donate 12.5% of their rewards to his fund that would then donate to various projects.
Now, he wants 2-3% of the rewards, and he suggested that miners donate directly to the projects, however, he wants anonymous miners pushed out, as they are only interested in making money.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

The crypto space still continues to mature and grow, with many errors along the way. However, when such errors are made, they are often pointed out by the community, and the chance for them to be revised emerges.

This is why last Saturday, February 1st, BTC.TOP’s Jiang Zhuoer, the operator of a major Bitcoin Cash mining pool, decided to revise his decision regarding the mining tax. Earlier, he stated that miners would end up orphaned from the blockchain should they fail to donate 12.5% of their rewards.

The donations were supposed to be used for further building of the BCH infrastructure. However, after the announcement, Zhuoer has decided to revise some parts of his controversial original stance.

The reason behind the decision is what he calls a ‘cultural misunderstanding.’ While there were claims that he did not wish to discuss the proposal, he did explain that there are several uncertain aspects of the plan.

As some may know, his mining pool, BTC.TOP is the main contributor to the network’s hashrate. According to him, his mining pool owns around 3,500 PetaHash and can influence 10,000P hash power. Lately, his mining pool received 28.1% of the network’s total block rewards, while four other largest pools — BTC.com, AntPool, Bitcoin.com, and ViaBTC — captured around 23.2%. However, it is worth noting that all four pools supported his original proposal.

Crypto community remains skeptical

After introducing the mentioned changes, his current proposal is for the miners to donate directly to specific projects that they are interested in. Meanwhile, while he still has plans regarding establishing a foundation, the BCH Miner Fund will operate as a trial for an indefinite period. It will distribute the money depending on the donors’ wishes, in proportion to the amounts they donate.

Another change is that miners would no longer have to donate 12.5%, but rather only 2-3%, with a further indication that 1% would likely be sufficient from 2021 onward. However, while Zhuoer was willing to make these changes, the community remains skeptical of his proposal, especially since he also recommended that anonymous miners should be pushed out, as they are only there to make money.