Bitcoin Developers Propose Infinite Coin Issuance

The discussion about the emission limit of Bitcoin has been on the table for years and even today, it continues to be the precursor of long debates between developers and members of the bitcoiner community.

On this occasion, the BitcoinTalk forum and the Bitcoin developers mailing list were the arenas where the experts of this technology put forward their ideas regarding the issuance of BTC, according to the most recent installment of the Bitcoin newsletter. Bitcoin OpTech.

Peter Todd, a developer of Bitcoin Core since 2012, lit the fuse of the debate by stating that the continuous issuance of BTC is not necessarily inflationary. To his credit, Todd argues that people tend to lose access to their bitcoins in a variety of ways, ranging from losing or forgetting the seed words, to accidents in which the cold wallet through which the bitcoins are accessed is lost. Saved BTC.

Since, due to the immutability of the Bitcoin network, lost coins will remain inert forever, Todd believes that a constant emission can help to recover, in a certain sense, those BTC that will never move again.

The developer also named several examples of networks where cryptocurrency issuance is constant, such as Monero and Dogecoin. In his exposition, Todd explains that a fixed issue of coins per mined block maintains a stable supply. In addition, the economy of the ecosystem would maintain a balance that would free it from being classified as inflationary or deflationary.

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Developers in favor of Todd’s proposal

According to Todd, making a change like this to the Bitcoin protocol would require a hard fork or hard fork. However, developer Vjudeu commented that a soft fork might be enough to add this possibility. In that case, there would be no risk of the Bitcoin blockchain being broken, but it would be enough for users to update their node to the version with that modification. For their part, users who do not agree with the change can do without updating their node.

Vjudeu’s proposal implies that the upgraded nodes issue a different bitcoin than the original. Although he does not propose a detailed solution for it, he assumes that another change can be applied by then that allows converting the original bitcoins into these modified bitcoins.

Developer Brahm Cohen also provided ideas in favor of keeping BTC issuance indefinitely. Among his suggestions, he highlighted that a 10%/90% relationship between commission earnings and mining incentives could be maintained, respectively. The intention of this was to avoid the fee sniping, a strategy in which the miner re-mines a block corresponding to another miner to appropriate the commissions.

Developers Against Removing Bitcoin Issuance Cap

Just as there are developers in favor of Todd’s proposal, there are also those who oppose it. One of them is Gregory Maxwell, who mentioned that Bitcoin is the network that offers the best dividends to its miners in terms of commission. To that he added that, shortly, Bitcoin will reach a point where the incentive to miners is not necessary to keep the network secure.

Regarding Todd’s idea of, in a way, replacing lost bitcoins with those that are generated, Anthony Towns replied that the effectiveness of that plan would depend on the constancy in the average of BTC lost. Towns has been part of the Bitcoin Core team for over two years and was involved in reviewing proposals like Taproot.

The developer known as ZmnSCPxj has also joined the cause of those who resist the idea of ​​infinite bitcoin issuance. His argument is that as long as the proportion of the rewards leans more towards the commissions than the subsidy, the more secure the network would be. This is because a miner would be less encouraged to censor transactions, since his income will depend on adding the largest number of transactions in the blocks he mines.

One of the flags of the bitcoiner community is its limited issue of coins, which reaches up to 21 million BTC. According to White book by Satoshi Nakamoto, that should be the cap. The scarcity of bitcoin favors its revaluation against other assets. Furthermore, it is one of the many characteristics that differentiates Bitcoin from central banks and cryptocurrencies that follow the model of infinite money printing.

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