Ethereum Classic was 51% attacked for the second time in less than two years. The most recent hack, which happened over a two-day period starting July 31st, netted hackers an estimated $5.6 million.
Since then, many have reached out to the Ethereum Classic team, including IOHK CEO Charles Hoskinson.
Hoskinson left Ethereum in 2014 over disagreements to do with the future direction of the project.
“Hoskinson wanted to accept venture capital and create a for-profit entity with a more formal governing structure. Buterin wanted to keep Ethereum a nonprofit organization with an open-source, decentralized governance.”
But regardless of that, Hoskinson has expressed his desire to help.
According to one publication, the management at ETC Labs wishes to handle the issues internally.
Nonetheless, Hoskinson, as well as other stakeholders, are due to meet with the ETC team to discuss strategies on taking the project forward.
Hoskinson States he Has no Intention of “Bailing Out” Ethereum Classic
In a recent YouTube video, Hoskinson laughed off suggestions that he is “bailing out” Ethereum Classic.
“I was never aware of a bailout to begin with… I had a great conversation today with a lot of people in the ETC leadership, over Discord, and there’s going to be a meeting on Thursday to discuss with the community some options.”
Hoskinson said the purpose of Thursday’s meeting is for all stakeholders to discuss ideas on making Ethereum Classic better.
With that, he shared his opinion on how to do that by saying ETC needs to innovate to be successful as a project. That comes from having adequate and sustainable funding, and not just immutability on its own as a selling point.
“There’s this fantasy, among some people inthe ETC community, that because ETC has immutability it’s going to be like field of dreams and everyone is just going to show up and build on that infrastructure.”
Expanding on this, Hoskinson described Ethereum Classic as caught up in a “bizarre halfway house”. It is neither an innovative trendsetter, nor is it a simple protocol, such as Bitcoin.
“You have to pick one side or the other, and because Ethereum was always destined to push in the direction of innovation, you have to have an innovation plan.”
A Treasury System Could Solve ETC’s Funding Dilemma
The reality is that projects need funding for innovation to occur.
As Hoskinson points out, the only option available to Ethereum Classic is a treasury system. This, he believes, will be the start point in getting ETC back on its feet.
Dash was the first cryptocurrency to implement a treasury system. Under its protocol, miners receive 45% of the block mining reward, with master nodes also receiving the same percentage share.
The remaining 10% balance is distributed to a decentralized autonomous organization (DAO) treasury fund. This fund pays for everything to do with developing and promoting Dash, subject to approval via a master node vote.
Meanwhile, Ethereum Classic could benefit greatly from such a system, after all, the competition isn’t standing still.
Ethereum Classic daily chart. (Source: tradingview.com)