StarkWare CEO Eli Ben-Sasson has proposed replacing Bitcoin's 21 million hard cap with a 4% annual issuance rate, citing concerns over lost private keys and aligning issuance with global population growth. Ben-Sasson argues that as time progresses, all private keys will eventually be lost, making the current hard cap "unreasonable." Ledger estimates that approximately 4 million bitcoins are already permanently lost.
The proposal has faced strong opposition from the Bitcoin community, which views the fixed cap as a fundamental principle of the cryptocurrency. Critics argue that Bitcoin's divisibility into 2.1 quadrillion satoshis is sufficient to address supply concerns. Zcash founder Zooko Wilcox suggested an alternative approach, involving a "network sustainability mechanism" that maintains the cap while allowing token burning and gradual reissuance as block rewards. Implementing any such change would require consensus among Bitcoin's decentralized stakeholders, a notably difficult endeavor.
StarkWare CEO Suggests 4% Annual Inflation for Bitcoin, Sparking Debate
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
