StarkWare CEO proposes setting a 4% annual inflation rate for Bitcoin to replace the 21 million cap

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Mars Finance reports, citing Cointelegraph, that StarkWare CEO Eli Ben-Sasson posted on X proposing to replace Bitcoin’s hard cap of 21 million coins with a 4% annual issuance rate. He believes the current hard cap is “unreasonable” because private keys are lost over time, and “when time tends toward infinity, all private keys will be lost.” Ledger estimates that around 4 million Bitcoins have already been permanently lost. Ben-Sasson said the 4% annual issuance rate roughly matches the global population growth rate. The proposal has sparked strong opposition from the community. Opponents argue that a fixed cap is at the core of Bitcoin’s value, and that Bitcoin can be divided into 2.1 trillion trillion satoshis—enough to address the issue of declining available supply. Zcash founder Zooko Wilcox suggested that Bitcoin developers look to the “network sustainability mechanism” Zcash is considering—keeping a fixed cap but allowing users to destroy tokens, which would be gradually reissued within four years as block rewards to ease pressure on miner incentives without breaking the hard cap. Any such change would require consensus among Bitcoin developers, miners, and node operators, and is extremely challenging under a decentralized governance model.
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