Ethereum Classic Labs are exploring ways to protect the network and move forward following the 51% attack two weeks ago.
Initial discussion on what to do are taking place today. Attendees include IOHK CEO Charles Hoskinson, as well as other stakeholders.
Previously, Hoskinson said Ethereum Classic needs to innovate, to which the implementation of a treasury function would fund this.
However, in a blog post published ahead of today’s meeting, Terry Culver, CEO of ETC Labs, expressed his concerns over implementing a treasury function.
Ethereum Classic Labs CEO Believes a Treasury Function Would Contradict Core Values
The treasury system proposed by Hoskinson would collect a portion of the block mining reward and distribute it to relevant parties. This includes IOHK, as well as ETC Coop, ETC Labs/core developers, and others.
In response, Culver states that this proposal conflicts with the core values of Ethereum Classic. What’s more, a treasury system doesn’t address any of the security problems on the ETC network right now.
“Unfortunately, we think that the Treasury proposal is contrary to ETC’s core values. In practice, the Treasury doesn’t address the problem of how best to increase network security, which is the critical priority at the moment. In my view, it may actually destabilize both the technical and social networks, leaving ETC more vulnerable.”
With that, he acknowledged that having no foundation, ICO, or charismatic leader, puts ETC at a disadvantage. But at the same time, Culver believes these “grassroots” and “purist” conditions are what makes Ethereum Classic what it is.
Culver implied that ETC Labs already has a war chest, and they are willing to spend it on upgrading the network’s security. So funding is not the principal issue.
But he still acknowledged that more money could help. However, he made it clear that funding must come from, and more importantly, go to, equitable sources.
“The community would benefit enormously from additional sources of funding. But these sources have to be additive, rather than redistribute existing resources from one stakeholder to others.”
Ethereum Classic has been caught in a descending channel since the attack. The price is down 16% following the incident.
Ethereum Classic daily chart with volume. (Source: tradingview.com)
Hoskinson Responds to Culver’s Blog Post
In response, Hoskinson posted a video in which he expressed his disappointment with the blog post. His primary complaint was that the blog post shut down any talk of a treasury system without any prior discussion.
“ETC Labs didn’t even give me the courtesy of calling me, talking to me, expressing their concerns first. Instead they just publish the blog post and said the debate is over, and if we wish to go down this road things are going to be contentious.”
Hoskinson then went on to say that the debate still needs to happen as Ethereum Classic is supposed to be a decentralized organization, and not everyone has had their say on the matter.
In addressing the points raised in the blog post, Hoskinson believes that network security comes down to making Ethereum Classic more attractive to miners.
“Miners are businesses, they show up everyday and they mine, and they don’t care if they get ten tokens or eight tokens. What they care about is, what can they sell those tokens for, and do they make money or do they lose money in the endeavour.”
For that to happen, Hoskinson maintains that a clear and concise roadmap is needed. That way, people are inspired to build on, adopt, and use the platform.
Without this, without treasury funding, the price will remain stagnant, and miners would choose other networks to mine.
— Charles Hoskinson (@IOHK_Charles) August 12, 2020
Some in the community have called on Hoskinson to leave Ethereum Classic as it is.