I recently came across an intriguing report from 1A1z titled “Funding Bitcoin.” It was shocking to learn that Jack Dorsey finances over 60% of Bitcoin Core’s development through various organizations, providing more than $5 million each year out of a mere $8.4 million total funding. Wild, isn’t it? For an asset valued at $1.2 trillion, I anticipated far more diversified support.
You might be concerned that this concentration gives him excessive influence. If he were to oppose Core’s principles, his funding leverage could raise genuine concerns.
But can Dorsey really control Bitcoin? Absolutely not. The essence of Bitcoin’s decentralization ensures that no single entity can dictate its terms, not even the primary benefactor of the leading Bitcoin implementation.
The vital distinction lies between Bitcoin Core and the Bitcoin network. Core enhances functionality, but ultimately, users decide which nodes to operate. If Core were to stray, users would reject its modifications or opt for alternative software.
This means Dorsey cannot enforce changes to Bitcoin. His sway has clear limits, even if he chooses to instruct developers on what to focus on or promote. The nodes truly hold the authority over Bitcoin’s progression. (For further details on Bitcoin Core’s governance, you can check out Who Controls Bitcoin Core? by Jameson Lopp.)
Nonetheless, I believe there should be increased financial backing from other donors and organizations for Bitcoin Core or alternative implementations. Numerous cryptocurrency companies prosper and rake in millions each month, reliant on Bitcoin’s success, yet they surprisingly contribute nothing. Ideally, support should extend to various Bitcoin implementations in addition to Bitcoin Core.
Bitcoin can only flourish through decentralization. This principle must also guide how we fund Core. Dorsey’s concentrated funding poses a challenge, whereas a broader donor base fortifies Bitcoin’s antifragility.
This article represents a Take. The views expressed are solely those of the author and do not necessarily represent the views of BTC Inc or Bitcoin Magazine.
