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A radical proposal has emerged to change the 21 million BTC supply cap, which is synonymous with Bitcoin (BTC). The co-founder of Zcash argued that an annual issuance policy of around 4% should be considered as private key losses continue.
According to U.Today, a cryptocurrency specialized media outlet, on July 8 (local time), Eli Ben-Sasson, co-founder of Zcash (ZEC), argued that Bitcoin's fixed supply cap of 21 million BTC should be re-examined. Ben-Sasson questioned the method of maintaining a fixed supply, stating that private key losses would continue over time.
Ben-Sasson did not advocate for unlimited issuance. He proposed a method of maintaining a clear monetary policy and an absolute cap while fixing the maximum issuance rate. He cited 4% annually as an example, explaining that the circulating supply should be matched with population growth and sufficient liquidity should be secured. Ben-Sasson said, “We can ensure that there is enough supply for everyone.”
Bitcoin's 21 million BTC supply cap is central to its monetary policy, designed to increase scarcity and prevent inflation. Bitcoin creator Satoshi Nakamoto incorporated this limit into Bitcoin's source code. Ben-Sasson's proposal has thus stirred up debate surrounding Bitcoin's core monetary policy.
While changing the supply cap is technically possible, the process is complex. Developers must draft a proposal, release the modified code, and then obtain consensus from the community and nodes. Once consensus is reached, the changes must be incorporated into Bitcoin Core, and the activation method must also be decided.
A hard fork may be required during the supply change process, and all nodes on the network must accept it. U.Today reported that given the need for broad consensus among developers, the community, and nodes, there is a possibility that the 21 million BTC supply cap may not actually be changed.
[Article Key Summary]
-Eli Ben-Sasson, co-founder of Zcash, argued that Bitcoin's fixed supply cap of 21 million BTC should be re-examined.
-Ben-Sasson cited private key losses and liquidity as reasons, proposing an annual maximum issuance rate of around 4% as an example policy.
-Changing Bitcoin's supply may require broad consensus among developers, the community, and nodes, as well as a hard fork.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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