TLDR
- BitMEX proposed a soft fork that activates only after proven quantum Bitcoin theft.
- The plan uses a NUMS canary address that a quantum computer could try to spend.
- Users may donate BTC as a bounty to test whether a real quantum threat exists.
- The proposal offers an alternative to BIP-361 and its dormant coin freeze plan.
- Jameson Lopp said BIP-361 was a rough contingency idea, not an activation proposal.
BitMEX Research has proposed a canary fund as an alternative to a Bitcoin quantum coin freeze. The plan would delay any freeze until a quantum computer proves it can steal Bitcoin. The proposal arrives days after BIP-361 sparked debate over whether dormant coins should be frozen to stop future theft.
BitMEX proposes a canary fund trigger
BitMEX Research shared its proposal on Thursday. It described a soft fork that stays inactive unless a real quantum threat appears. Under the plan, old coins would remain spendable until that point.
The system uses a special Bitcoin address based on a Nothing-Up-My-Sleeve Number. The private key is unknown, yet the address remains valid. A quantum-capable actor could try to spend from it.
Users can send Bitcoin to that address as a bounty. If someone spends from it, the network gets proof that quantum theft is possible. At that point, the freeze would activate automatically.
BitMEX said this “canary approach” could reduce the reach of a freeze. It added that more complexity and risk would come with that design. Still, it said the trade-off may be worth review.
Proposal answers concerns around BIP-361
The canary fund proposal follows BIP-361, which suggested freezing dormant Bitcoin that may be quantum-vulnerable. Supporters said the step could stop future theft by bad actors. Critics argued that the plan goes too far.
Some community comments called BIP-361 “authoritarian” and “confiscatory.” That response pushed the debate beyond technical design. It also raised questions about control over old coins.
BitMEX said its watch state would avoid an automatic freeze from the start. Older coins could still move, unless the canary fund gets spent. That setup would keep normal access in place for longer.
The proposal also includes a safety window after the five-year mark in BIP-361. During that period, vulnerable transactions may still pass. Yet their outputs would remain locked for a set time.
Debate stays open as Bitcoin reviews quantum risk
BitMEX said canary fund participants could use multisignatures. It also said they could withdraw their Bitcoin at any time. That feature aims to keep the bounty flexible and reversible.
Meanwhile, BIP-361 co-author Jameson Lopp said his plan was not ready for activation. He wrote on X, “I know folks don’t like it. I don’t like it myself.” He added that he wrote it because he liked the alternative even less.
Lopp also told Cointelegraph that BIP-361 was a “rough sketch.” He said it was meant for a future case where quantum computing advances further. That would matter if Bitcoin ever moves toward a post-quantum signature scheme.
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