In a somewhat surprising turn of events, Roger Ver, the co-founder of Bitcoin fork, Bitcoin Cash (BCH), today told users to buy DASH on Reddit.
The statement came as a result of users requesting an Infrastructure Funding Plan (IFP) for BCH. The Dash Twitter world was quick to point out Ver’s statement:
Yo @CoinDesk & @Cointelegraph Big News! @rogerkver tells #BitcoinCash community on #reddit that peer to peer electronic cash already exists! It’s called @Dashpay! and asks IFP (Infrastructure Funding Plan) supporters to sell their #BCH for #DASH! ??https://t.co/asyShA8aCt
— Mark Mason (@StayDashy) August 18, 2020
As a founder of his own cryptocurrency, Ver does not often shill other coins, and his endorsement isn’t always a positive thing. Ver has been an outspoken critic of the parent Bitcoin chain for years, saying that Bitcoin Cash is Satoshi Nakamoto’s true vision.
However, in this case, Ver’s statement reflects a belief that Dash contains the same overall premise of digital cash, but with higher internal governance. This is made possible by the inclusion of an IFP.
What’s an IFP?
An IFP is a plan that allows for the internal workings (the infrastructure) of any system to be funded by the users of that system. In other words, those who most consistently use a system should pay to fund its development.
This perspective is true in government, as users pay taxes. However, Bitcoin’s original design eliminated any such centralized governance in favor of volunteer infrastructure management.
The BCH network follows in those footsteps and doesn’t have any such plan. However, other more centralized cryptocurrencies like DASH are built with IFPs in mind.
Roger Ver’s response
The off-handed remark from Ver reflects the growing pressures within the BCH network to offer some kind of infrastructure control. The lack of such a system, and a decrease in miner activity, could leave the chain without the ability to upgrade. This is the basic motivation for chains like DASH to have IFPs.
However, Bitcoin was originally conceived as a decentralized peer-to-peer payment platform, which by definition eliminates centralized structures. To have one is to move against the foundational principles of cryptocurrency.
This is, of course, at the prerogative of the miners and users of those chains. Some would argue that an IFP offers worthwhile benefits in exchange for a small limitation on miner autonomy.
Regardless, Ver’s endorsement of DASH could send users running from BCH. For those who believe an IFP is an essential component of a functional cryptocurrency, DASH may be the best choice.
One thing is quite clear, however: Ver has no intention of including any type of IFP on the BCH network any time in the near future.
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