Bitcoin core developer Jameson Lopp has introduced a controversial proposal, BIP-361, that explores freezing an estimated 5.6 million bitcoin (BTC) believed to be permanently lost. Lopp stated in an interview with CoinDesk that while he does not want to freeze anyone's bitcoin, removing these dormant tokens from potential circulation may be a necessary safety measure against a future quantum computing threat. At current prices, the dormant tokens in question are worth roughly $420 billion.
Lopp emphasized he is thinking "adversarially about a potential future threat" and would "rather for lost or dormant coins to be taken out of reach from an attacker rather than have them flow into the hands of an entity that likely doesn't care much about the ecosystem." He clarified that he "doesn't like" the proposal and hopes it never needs adoption, describing it as a "rough idea for a contingency plan" rather than a finalized specification. "I wrote it because I like the alternative even less," he wrote on X, adding that facing an existential threat means "individual economic incentives outweigh philosophical principles."
The proposal, released Tuesday, explores phasing out Bitcoin's current cryptographic signatures and, over time, invalidating transactions from quantum-vulnerable wallets. This could potentially freeze assets that fail to migrate to quantum-resistant security. Lopp estimates roughly 28% of all bitcoin, or about 5.6 million tokens, has not moved in over a decade and is likely lost forever. He warns that if recovered via quantum computing, this massive amount could introduce severe market volatility and undermine confidence in the network.
The core risk, according to Lopp, is not just a potential market dump but a loss of trust. "If there is any credible evidence that anyone has the capability to recover lost or vulnerable coins with a quantum computer, you should expect a massive market panic immediately," he said. In such a scenario, rational holders would likely exit until confidence in the blockchain's security is restored.
The debate has sparked a philosophical divide within the Bitcoin community. Market analyst Mati Greenspan, founder of Quantum Economics, noted the path to quantum resistance is clear, but the handling of vulnerable coins is the real question. He argued that freezing accounts "introduces a precedent of intervention that many would argue is more dangerous than the threat itself." Leo Fan, founder of Cysic, echoed concerns, stating that conditional ownership where "having keys no longer guarantees you can spend" weakens Bitcoin's promise of being 'unstoppable money.'
Lopp framed the proposal as a way to incentivize the ecosystem to upgrade proactively, noting "humans tend to be procrastinators." Any implementation would require overwhelming consensus across Bitcoin's decentralized network, with no formal vote but likely needing miner support to activate. The proposal remains in early stages with no set timeline.
