F2pool Returns Paxos’ Overpaid $500K BTC Fee, Defying Poll

F2Pool returned Paxos’ 19.8 BTC, overruling a community vote.

Large hand from above gives a bag full of money to guy.
Created by Gabor Kovacs from DailyCoin
  • F2Pool has returned Paxos’ overpaid fee.
  • The mining pool decided against the recommendations of a community poll it organized.
  • Despite the happy ending for Paxos, F2Pool’s decision has sparked centralization debates.

After an eventful week, blockchain infrastructure provider Paxos can breathe a sigh of relief. 

On Wednesday, September 13, the firm admitted ownership of a wallet, which grabbed headlines for paying a record-breaking 19.8 BTC (approximately $510,750 at the time) to move only about 0.074 BTC ( about $1,916 at the time) on September 10. 

After a back and forth with F2Pool, the miner of the transaction block, recent data shared by mempool reveals that the firm has managed to recoup the funds.

Overpaid Fee Returned

In a tweet on Friday, September 15, mempool shared on-chain data showing that F2Pool had returned the overpaid 19.8 BTC fee to Paxos.

Despite the happy ending for Paxos, the road to recovery was not without hurdles. While at the time of the incident, F2Pool had offered a three-day window for the erring party, later confirmed to be Paxos, to claim the coins, a time zone disparity appeared to have sparked a dispute between both parties. 

Following the dispute, F2Pool co-founder Chun Wang left Paxos’ fate to the crypto community but appears to have had a change of heart.

F2Pool Defies Community Poll

Disclosing an annoyance with Paxos’ approach, Wang launched a Twitter Poll to let the crypto community decide what happened to the 19.8 BTC fee. The options were a full refund to Paxos, miner distribution, a halfway split, and freezing the funds.

After 4,811 votes, the result of the poll showed that the majority voted in favor of distributing the fee to miners. However, as the recent data indicates, F2Pool decided to go against the polls.

Some have criticized the mining pool’s decision, raising centralization concerns. These critics have urged F2Pool miners to switch pools.

F2Pool’s Wang did not immediately respond to a request for comment.

On the Flipside

  • Paxos had claimed that customer funds were unaffected.
  • The blockchain infrastructure firm attributed the miscalculated fee to a software bug it claims has now been resolved.

Why This Matters

The overpaid Paxos fee sparked significant conversation as it broke the record for the highest-ever fee for a Bitcoin transaction. While Paxos gets a happy ending, debates over the fallout of the debacle continue.

Read this to learn more about the controversial transaction:
User Pays $500,000 for a Single Bitcoin Transaction: Details

Is Binance.US at the end of the rope? See what experts have to say:
Binance.US Shutdown Panic Burgeons as Legal Execs Jump Ship

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.