WHAT WE ARE READING: bitcoin financing
I recently came across a fantastic report from 1A1z on “bitcoin Financing”. I was surprised to learn that Jack Dorsey funds more than 60% of bitcoin Core development through different organizations: more than $5 million a year, out of a total of only $8.4 million in funding. Wild, right? For a $1.2 trillion asset, I expected much more diverse support.
Now, you may be concerned that such concentration risks having too much influence. If he turned against Core's principles, his financial influence could be a real concern.
But does Dorsey's power really extend to control of bitcoin itself? No, not at all. bitcoin's decentralization means that no entity can dictate the terms, not even the main donor of bitcoin's main implementation.
Here's the key difference: bitcoin Core versus the bitcoin network. Core adds useful features, but people choose which nodes to run. If Core became corrupt, people would simply reject your changes or use different software.
So Dorsey cannot force changes in bitcoin. Your influence has strict limits, even if you decide to dictate to developers what to work on or what to push. Nodes have the real power over the evolution of bitcoin. (You can read more about bitcoin Core governance here: bitcoin-core/”>Who controls the bitcoin core? by Jameson Lopp.)
Still, I think there should be more donors and organizations funding bitcoin Core or other implementations. Many crypto companies benefit and make millions in monthly profits, depending on the success of bitcoin, but surprisingly, they contribute nothing. Ideally, people should also fund different bitcoin implementations in addition to bitcoin Core.
bitcoin will only prosper through decentralization. We also need to apply that spirit to Core funding. Dorsey's concentration of funding challenges him, while the expansion of the donor base protects bitcoin's antifragility.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
