The Bitcoin Foundation may split into two separate bodies after facing reputational damage, declining membership and continued losses.
An internal document leaked by Bitcoin Magazine listed the organisation’s plans to split into two separate entities. A scaled-down Bitcoin Foundation would continue as a bitcoin promotion tool, while an entirely new investment entity was created to fund core development of the digital currency.
The proposed would see the Foundation distance itself from core development and return to its intended role as a community-driven promotional organization.
The report follows on the heels of board member Olivier Janssen’s forum post lambasting the Bitcoing Foundation, claiming that the organisation was “effectively bankrupt”.
“The foundation has almost no money left, and just fired 90 per cent of its people. Some will stay on as volunteers,” Janssens wrote, adding that a lack of transparency and poor spending decisions led to its current crisis.
“The foundation isn’t bankrupt, but the board needs to decide whether the responsible thing to do is to continue the organization with a much smaller organization and vision or to dissolve it,” board member Gavin Adresen said in response.
According to the leaked document, the Foundation still can still cover operational costs at its current burn rate for several months.
The leaked proposal advises that the new funding-orientated entity be created immediately, followed closely by a $2 million fundraising round.
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