Bitcoin Proposal Seeks to Freeze Quantum-Vulnerable Assets to Prevent Future Theft

Cypherpunk Jameson Lopp and several co-authors have introduced BIP-361, a draft proposal aimed at securing the Bitcoin network against the future threat of quantum computing. The 'Post Quantum Migration and Legacy Signature Sunset' plan focuses on protecting approximately 1.7 million BTC currently held in early P2PK addresses, including the estimated $74 billion stash attributed to Satoshi Nakamoto. The proposal is the second phase of a broader strategy that began with BIP-360, which introduced the quantum-resistant pay-to-Merkle-root (P2MR) output type. While BIP-360 secures new transactions, BIP-361 addresses the legacy supply that remains vulnerable unless manually migrated to new address types. The plan outlines a phased approach: Phase A would prohibit new transfers to old-style addresses three years after activation. Phase B would invalidate old signatures and effectively freeze remaining vulnerable funds five years post-activation. A third phase would offer a rescue mechanism using zero-knowledge proofs for users who possess their seed phrases but missed the migration deadline. The authors argue that freezing these coins provides a 'private incentive to upgrade,' as lost or frozen coins would marginally increase the value of remaining assets. However, the proposal has faced sharp criticism from prominent Bitcoin developers and industry figures, who describe the move as authoritarian. Critics argue that rendering UTXOs unspendable violates the core philosophy of Bitcoin, with some labeling the proposal as a form of forced confiscation to protect the network's overall value.