BitMEX Research has proposed an alternative to freezing dormant, quantum-vulnerable Bitcoins: a wait-and-see approach using a “canary fund” with a quantum bounty that only triggers protections if a quantum-capable actor proves the threat.
The soft-fork design would not automatically freeze old, vulnerable coins. Instead it creates a special Bitcoin address derived from a “Nothing-Up-My-Sleeve Number” (NUMS) whose private key is unknown. Users may donate BTC to that address as a bounty. If a quantum computer can actually break the relevant signatures, an actor capable of doing so could spend from the canary address; that single action would serve as proof the quantum threat is real and would automatically activate a full freeze of the flagged coins.
This canary watch state lets old coins be spent normally unless the canary fund is spent. Investors in the fund can protect their contributions with multisignature schemes and may withdraw at any time. The proposal also includes a grace mechanism permitting some vulnerable transactions past the five-year window envisioned in BIP-361, but with outputs locked for a period to reduce risk.
BitMEX’s plan was offered as an alternative to BIP-361, a proposal that suggested freezing dormant quantum-vulnerable coins after a set period to prevent future theft. BIP-361 provoked notable community pushback, with critics calling it authoritarian and confiscatory. BitMEX acknowledged the canary approach “adds complexity and risk,” but argued it may be worth considering given how controversial any coin freeze would be.
BIP-361 co-author Jameson Lopp has described his proposal as a “rough idea for a contingency plan” rather than a ready-to-activate measure. He said he dislikes the proposal but views it as preferable to the alternative he feared: a looming circulating supply shock if and when a post-quantum signature scheme reaches consensus for inclusion in Bitcoin.
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