Bitcoin Cash is heading toward a critical network upgrade on November 15, 2020, and this time, the community is deeply divided. The upcoming hard fork introduces the ASERT Difficulty Adjustment Algorithm (DAA), but a controversial Infrastructure Funding Proposal (IFP) embedded in the Bitcoin ABC codebase threatens to split the chain in two.
TL;DR
- Bitcoin Cash network upgrade scheduled for November 15, 2020, featuring the ASERT DAA
- The Infrastructure Funding Proposal (IFP) in Bitcoin ABC’s codebase may cause a chain split
- Six BCH full node clients refuse to adopt the IFP, siding with Bitcoin Cash Node (BCHN)
- Kraken announces it will support BCHN regardless of fork outcome, requiring ABC to have 10% of BCHN hashpower
- HitBTC plans to halt BCH transactions and credit users 1:1 if a split occurs
The Divide: ABC vs. BCHN
The Bitcoin Cash ecosystem has been building toward this confrontation for months. At the center of the storm is the Infrastructure Funding Proposal, a mechanism that would redirect a portion of mining rewards to fund development. Bitcoin ABC, the original BCH implementation, included the IFP in its codebase. But the broader community had other ideas.
Six separate BCH full node clients have refused to adopt the IFP feature, rallying behind Bitcoin Cash Node (BCHN) as the preferred implementation. Data shows approximately 73% of Bitcoin Cash blocks are already being mined with BCHN, signaling a clear preference among miners for the IFP-free path.
In a surprise twist on November 6, Bitcoin ABC announced it would also launch an IFP-free software client compatible with BCHN and the other full node implementations. The move was met with skepticism across Reddit and Twitter, with many BCH proponents viewing it as a last-ditch effort to remain relevant. As one Reddit user put it: “This seems like a last-ditch effort for relevance.”
Exchanges Pick Sides
Major cryptocurrency exchanges are not waiting for the fork to play out before making contingency plans. Kraken has been among the most decisive, announcing it will support Bitcoin Cash Node regardless of the fork outcome. The exchange confirmed that BCHN tokens will carry the “BCH” ticker on its platform.
However, Kraken set a clear threshold for ABC support. The exchange stated it would only list “Bitcoin Cash ABC” under the ticker “BAB” if the ABC network achieves at least 10% of the hashpower on the BCHN network. This is a significant hurdle given the current mining distribution heavily favoring BCHN.
HitBTC took a more neutral approach, announcing it would halt all Bitcoin Cash transactions on November 15 and credit users with an additional token at a 1:1 ratio based on a full snapshot of BCH balances at 12:00 PM UTC. The exchange indicated a decision on which chain would retain the BCH ticker would come after the fork completes.
What’s at Stake
With Bitcoin Cash trading at approximately $253.59 and holding a market capitalization of $4.7 billion as of November 7, the fork has significant financial implications for holders. The broader crypto market is already experiencing heightened volatility, with Bitcoin itself surging past $15,500 this week amid U.S. election uncertainty.
The ASERT DAA upgrade itself is widely regarded as a technical improvement that would bring more predictable block times to the network. The controversy lies entirely in the governance question of whether mining rewards should be redirected to fund development — a debate that cuts to the core of Bitcoin Cash’s identity as a community-driven project.
Community Reaction
The BCH community on Reddit and Twitter has been vocal in its opposition to Bitcoin ABC’s IFP push. Many prominent community members have bid farewell to ABC developers, viewing the fork as an opportunity to move forward without the governance disputes that have plagued the project. The overwhelming hashpower advantage of BCHN suggests that miners have already made their choice.
For Bitcoin Cash holders, the coming week will require careful attention to exchange announcements and wallet updates. Those holding BCH in private wallets will likely receive both tokens in the event of a split, while exchange users should verify their platform’s specific fork plans and deadlines.
Why This Matters
The Bitcoin Cash fork of November 2020 is more than just a technical upgrade — it’s a referendum on governance in cryptocurrency. The outcome will shape how one of the top-ten digital assets by market cap evolves, and whether community consensus or developer mandates drive its future. With BCH trading at $253.59 and the broader crypto market surging, the stakes are real. Investors should monitor exchange announcements closely as November 15 approaches.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.
the IFP was such a terrible look. forcing miners to fund your dev team through protocol-level redirects is peak centralized thinking for a chain that split over centralization concerns
the irony of a chain born from rejecting centralization now trying to centrally redirect mining rewards. ABC learned nothing from the original fork
forcing miners to fund dev through protocol rules is basically taxation without representation. BCHN was the obvious choice
taxation without representation is exactly what it was. ABC wanted mandatory miner tribute and the community rightly said no
Kraken saying they’d support BCHN regardless of hash power was the right call. exchanges holding the line against bad upgrades is how this should work
kraken setting the 10% hashpower threshold was the exchange standard that others should have adopted. clear rules prevent chaos during forks
Kraken setting a hashpower threshold for ABC support was smart exchange policy. forced transparency on which chain actually had consensus
hitbtc halting BCH and crediting 1:1 was smart. let both chains prove themselves instead of picking winners. most exchanges just picked BCHN and moved on
hitbtc crediting 1:1 and letting users sort it out was the only sane policy. picking sides pre-fork is how exchanges get sued
the IFP was the moment BCH lost the plot. arguing about mining tribute while BTC ate their market cap week after week