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August 13, 2020WITHDRAWN

ECIP-1051 Treasury Proposal

ECIP-1051 proposed an Ethereum Classic treasury system funded by block reward diversion. Discussed across two Core Devs Calls alongside 51% attack solutions. The proposal did not achieve consensus and was superseded by ECIP-1098.

ECIP-1051 Treasury System Proposal

ECIP Status: Rejected
Discussion Period: 2017–2020
Outcome: Did not achieve consensus — superseded by ECIP-1098


Overview

ECIP-1051 was Dexaran's proposal for a protocol-level treasury system on Ethereum Classic, funded by diverting a portion of block rewards. The concept was independently explored by IOHK in a 2017 research paper. Discussion intensified in August 2020 following multiple 51% attacks that highlighted the need for sustainable protocol funding. However, the proposal conflicted with ETC's monetary policy (ECIP-1017) and the community's resistance to block reward diversion. ECIP-1051 was ultimately rejected and superseded by ECIP-1098.

Timeline

  • 2017: IOHK published "A Proposal for An Ethereum Classic Treasury System" research paper
  • 2018: ECIP-1051 submitted by Dexaran alongside ECIP-1052 (Smart-contract Security Auditing core)
  • 2019: ETC Coop proposed formal rejection of both ECIP-1051 and ECIP-1052
  • August 13, 2020: Core Devs Call — Treasury Roadmap Initial Discussions. IOHK presented renewed proposal following 51% attacks
  • August 20–28, 2020: Core Devs Call — Security Evaluation. Mining algorithm proposals and treasury discussed alongside 51% attack solutions
  • 2020: ECIP-1051 did not achieve consensus. IOHK submitted ECIP-1098 as a more formal treasury proposal

Key Issues

  • Block reward diversion — Funding the treasury by diverting block rewards conflicted with ECIP-1017's fixed monetary policy
  • Centralization concerns — A protocol-level treasury requires governance over fund allocation, raising centralization risks
  • Community opposition — Significant opposition from community members who viewed any treasury as incompatible with ETC's "ungovernance" philosophy
  • Superseded — The treasury concept evolved into ECIP-1098 (Proto Treasury), which was also eventually withdrawn

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