Antpool Begins Burning BCH Network Fees
On Friday, April 20, Antpool, one of the largest Bitcoin mining pools, addressed a situation in which a small fraction of Bitcoin cash was being sent to “black hole” addresses whenever the company mined a Bitcoin block. Many members of the cryptocurrency community have noticed the oddity. However, Antpool says it was burning those funds on purpose, claiming it was doing so in the best interest of the BCH economy.
Antpool Burns 12% of Fees
Many cryptocurrency veterans will recognize Antpool. It’s one of the oldest cryptocurrency mining pools and is operated by Bitmain Technologies. Recently, Antpool was discovered to be “burning” crypto funds by sending Bitcoin cash (BCH) to accounts that don’t have the means to spend them. Thus, the Bitcoin cash that was “burned” can never be spent again in the cryptocurrency ecosystem, which some believes helps to improve digital scarcity of the currency.
Antpool explained its actions by saying that BCH is approaching a “tipping point of becoming a widely used public blockchain,” adding there will be a “wave of innovation” involving Bitcoin in the near future.
Antpool further explains their “burning” actions by mentioning several other platforms being built on the BCH chain, the newest Memo application, as well as the hard fork that’s set for May 15 with the hopes of increasing the block size to 32MB.
“More and more useful applications will be enabled on BCH,” says Antpool, adding that holding investors will continue to be important to the economy despite Bitcoin’s widespread use.
“Some bitcoin cash investors may have noticed that Antpool has recently begun burning BCH by sending mining fees to a black hole address with each block mined — Twelve percent of the transaction fees earned by the mining pool are burnt — This is voluntary and we want to explain why this burning might be good for BCH as a whole,” the company remarked in a statement. “While having active users spending BCH is very important for the ecosystem, having investors who hold BCH is also a fundamental requirement for maintaining a strong economy — Without these holders, BCH’s exchange value loses significant support.
Others Jumping In The Pool
Antpool also mentions the need for the BCH economy and cryptocurrency community to continue pushing for further growth. Of course, the announcement that Antpool is “burning” currency works to denounce “maximalism” among cryptocurrencies, referring to it as “dangerous.” Antpool believes the entire crypto ecosystem will benefit from more tokens helping to push toward an “on-chain transaction explosion.” Moreover, Antpool is pushing for other pools to also burn BCH.
Said Antpool: “We call for other miners to join us in burning 12% of the transaction fees collected.”