UAHF ICO Proposal (Draft)
The Bitcoin scaling issue has been debated for over 3 years, and the network has been running with full capacity for more than 1 year. Transaction backlog and excessively high transaction fees have done irreversible damage to Bitcoin. Although Bitcoin price is rising, there’s an undeniable fact that Bitcoin has seen a continuous drop of market share in all cryptocurrency. Some Bitcoin Core developers have made public statements to oppose block scaling and support higher transaction fee. They even want to turn Bitcoin from a peer-to-peer cryptocurrency into a settlement system which is an obvious violation of the principles of Bitcoin white paper. Recently the Bitcoin community has gained a lot of support for New York Consensus and SegWit2x, a compromised solution they initiated to scale Bitcoin. But this solution may encounter opposition too and even abortion. Therefore, besides the NYC as Plan A, we also need a Plan B to 100% guarantee big blocks for Bitcoin. The Plan B will introduce an ICO and raise funds to buy/rent hash power to support a UAHF (User Activated Hard Fork), which will fork out a Bitcoin blockchain with big blocks.
The ultimate goal of the ICO is to guarantee that Bitcoin is run by the big-block chain. An ICO will be able to raise funds to buy/rent hash power to support a UAHF (User Activated Hard Fork), which will fork for a Bitcoin blockchain with big blocks. The fork will be realized by BUIP055 and is capable of preventing rolling back and replay attack. This fork will make sure that it runs with the core principles of Bitcoin white paper and achieve the ultimate vision of Bitcoin as a peer-to-peer cash system. If the new fork gains 5% of network hashrates, it will function well with stable blocks mined under current difficulty. What’s more, its support of 32MB blocks will deliver much better transaction experience compared to the status quo. When the first difficulty round ends after the fork, mining new blocks will be faster as difficulty declines, and therefore improve the usability of the new chain. There’s another possible solution to speed up the adjustment of difficulty by resetting mining difficulty.
Use of Funds
1. Funds raised via the ICO will be used to buy or rent mining hash power to support the first difficulty round of the new fork and the long-term mining for the forked chain with big blocks. Building farms or produce mining hardware is time consuming so initially we’ll rent hashrates and buy more miners in the long run to gain 5%+ network hashrates.
2. A part of the initial funds (and yields) will be used to support the development of multiple Bitcoin clients and the standardization of Bitcoin protocols.
3. A part of the initial funds (and yields) will be used for venture investment.
1. The goal of the ICO is to support the mining of big blocks in the forked chain and achieve a Bitcoin with big blocks.
2. The direct yields of the ICO is the new coins to be mined in the forked chain, and the profits gained from venture investment or other investments.
1. As the new fork has a minority hashrate, it’s subject to possible 51% hashpower attack. However, 51% hashpower attack is far from realistic on economic terms. We can see from ETH and ETC. 51% hashpower attack didn’t happen to the ETC chain, even though it has a much lower hashpower. The attack can only be profitable through double spent transactions most possibly targeting trading platforms. But trading platforms can easily avoid this by postponed withdrawals and their strict KYC policies make it even harder for attackers to gain the profits. There may be another non-profitable purpose for 51% attacks by continuously mining empty blocks with 0 transactions so that the blockchain becomes of no use. It’s similar to DDOS attacks which require large costs and so cannot last.
2. The forked coin may have a low price due to minority market acceptance. As the coins mined at the forked chain are the direct yields of this ICO, it will directly influence the ROI for investors.
To be determined
To be determined