The two problems: The tax and the entitlements

The developer tax (see below for the use of the tax word) gives us two problems, both serious, essential, you could say existential.

Too long, I don't fucking care.

The tax:

What the miners pay: Nothing, it is not a problem for them, nobody pays more, no problem for anybody.

Hash cost reduced, hash power reduced. Is it a problem? Not in itself, the block subsidy schedule was made 11 years ago, nobody knew todays coinprice at the time. It is probably good enough, however: We have more than one coin on the same equipment, the world investment in sha256 hashing special machines. The balance between the coins is important, and for that reason we can not renounce any hashpower.

And the killer: It makes the coin unsound - someone is eating from our plate, parasites sucking life energy from every user of bitcoin cash. Sound money means nobody get coins on the cheap.

Today the proposal is 5% of the subsidy and 5% of the fees. Why fees, they are hardly 2 dollars a block. Do they look to the future?

What kind of money are we talking about? After the halving, 6.25 BCH subsidy, and 5% is 0.3125 BCH per block. In fiat today 121.5 USD per block. 727 USD per hour 17460 USD per day, 532800 USD per month or 6372900 USD per year.

That was todays prices. In a year, it could easily be a million USD per month, in two years it could easily be two million USD a month.

The entitlements:

So someone has to manage this. I would guess a developer, just like everybody, will need some certainty for the salary, so a fund will be created to stack up some of it for the future. Maybe half the money each month will be accumulated. Then there is the question of what to invest in.

In four years there will be another halving, cutting the subsidy that at that point is maybe 8 million a month, in two. Will the tax be increased to 10 percent? Who will have it? The amount would cover 100 full time and part time developers, can they be crammed into the project, or is there a need to find other good purposes, retired programmers, anyone? Repairing losses for users of crashed exchanges? A Satoshi birthday celebration in Davos?

Who would manage this fund, how will they work? The answer is very simple: At first, people with good intentions. Then others who will want to join the yearly coin discussion, hotels and food events on a Caribean island. Then the general parasites. Salary. Chief Investment Executive. Bonuses. We created all this value you know, so we deserve it. Then the whole shebang will be connected near the top of the banking cartel power pyramid. How can it end otherwise? It can't.

These people, with the money and some dirty tricks, can control every developer, the press, every public voice in the blogosphere, rewrite history, block anybody in the social media, hire thousands of trolls, they can represent the coin with the bank regulators.

The tax word: It is a tax only if you regard the small world of Bitcoin Cash and the current actual single implementation node version, Bitcoin ABC. On a higher level, the market level, because this is free market money, there is no tax, because the chain can split, directed by the market which expresses it's preference with pricing. There are also alternative coins that could work as sound money: The coin made by those who believe it can't work, and the other coin from those who believe it can work so well that it can swallow all the data on the whole internet.

See also my https://read.cash/@ErdoganTalk/the-soundness-the-essential-feature-of-the-money-that-we-want-0a10a11f