ETC Cooperative bows out of Ethereum Classic Treasury Proposal by IOHK

  • The ETC Cooperative has withdrawn its support for the Treasury Proposal for Ethereum Classic, following directional differences.
  • ETC still struggles to level up to its brother Ethereum, with distinct differences in performance metrics between the pair.

The ETC Cooperative of Ethereum Classic (ETC) announced the withdrawal of its support for the Ethereum Classic Improvement Proposal (ECIP)-1098 Treasury Proposal. As Bob Summerwill, executive director at ETC Cooperative tweeted:

The ETC Cooperative is withdrawing its support for the ECIP-1098 Treasury proposal.  It became apparent over time that IOHK’s vision of a treasury was sharply at odds with our expectations.

Early this year, the ETC Cooperative backed the treasury proposal which was put on the table by Charles Hoskinson’s IOHK. The proposal was meant to bring sustainable funding which would support Ethereum Classic in maintaining itself as the “core protocol.” Since breaking off from Ethereum about six years ago, Ethereum Classic has touted itself as the ‘original’ Ethereum.

Additionally, the Treasury proposal would facilitate the evolution of the Ethereum Classic platform other than incentivizing developer activity. This would inspire client diversification, innovation, and competitiveness.

Differences in Ethereum Classic Treasury Proposal

However, the ETC Cooperative and the IOHK now have differing ideologies. ETC Cooperative wanted to place a restraint on private profits with what they referred to as a “sweeping mechanism.” With it, “unspent client team funds would have been swept forward into the community grants pool,” reads the Cooperative’s website.

Client teams would, therefore, not end up with excessive proceeds due to rising ETC prices or team differences in spending. IOHK rejected the ETC Cooperative’s “must-have” mechanism, hence the Cooperative’s disengagement. Moreover, ETC Cooperative feels the proposal iteration process dragged on for too long damaging transparency.

ETC Cooperative is confident that without its sweeping mechanism, the community would discard the proposal. Deficiency in “transparency, accountability and a capped profit margin” would make valid reasons for throwing out ECIP-1098.

Nonetheless, ETC Cooperative has clarified that it still advocates for a treasury proposal, only that the current one lacks viability. Intrinsic funding is also of the utmost necessity as ETC cannot be wholly dependent on outside funding for maintenance. Grayscale and DFG have been the protocol’s greatest supporters but the ETC Cooperative describes their funding as “fragile”.

ETC Vs ETH

Following the spin-off, ETH, ETC has had stark differences in their price movements. At writing time, ETC was trading at $49.76 and ranked 27th by market cap, our data shows. ETH, on the other hand, was trading at $3,069.38 and ranked 2nd by market cap. ETC’s all-time high was four months ago, at $134.90 while Ethereum’s surpassed the $4,000 mark.

Performance metrics, such as total transaction and hash rates, also bring out Ethereum as the better of the pair. Ethereum network performs an average of 600,000 transactions daily while Ethereum Classic’s daily average is 40,000. However, since it lacks Ethereum’s popularity, Ethereum Classic boasts cheaper gas fees.

That said, Ethereum Classic may find its niche as ETH 2.0 is launched, the ETC Cooperative notes quoting ETC’s common catchphrase:

ETC is a cockroach, in the best possible ways.

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