Bitcoin core developers proposed freezing approximately 8 million coins this week to defend against quantum attackers. But Cardano founder Charles Hoskinson, in a video posted to his YouTube channel Wednesday, said the plan can't save coins belonging to the network's pseudonymous creator Satoshi Nakamoto.
BIP-361 Called a 'Lie' — Hard Fork Disguised as Soft Fork
Hoskinson claimed BIP-361, authored by Jameson Lopp and others, is technically mislabeled. The proposal aims to phase out quantum-vulnerable addresses under a soft fork framework. However, Hoskinson argued that invalidating existing signature schemes users actively rely on functionally requires a hard fork. "To actually do this, you need a hard fork," he said. The distinction matters: a soft fork tightens rules so old software still works but can't use new features; a hard fork fundamentally changes rules, breaking old software and forcing a network split unless all upgrade. Bitcoin's development culture has historically opposed hard forks as violations of immutability. Hoskinson called the proposal's soft-fork framing a "lie."
Zero-Knowledge Recovery Fails for 1.7 Million Pre-BIP-39 Coins
BIP-361 lets holders of frozen quantum-vulnerable funds reclaim them via a zero-knowledge proof tied to their BIP-39 seed phrase. But Hoskinson pointed out that approximately 1.7 million bitcoin were mined before BIP-39's introduction in 2013, using a different key derivation method from the original Bitcoin wallet software — a local key pool rather than a deterministic seed. Those early addresses have no seed phrase to prove knowledge of. "1.7 million coins can't do that. It's not possible. 1.1 million of which belong to Satoshi," Hoskinson said. If the proposal passes, those coins would remain permanently frozen, as migration requires cryptographic proof their owners cannot provide.
Author Lopp Admits He Hates His Own Proposal
Jameson Lopp, co-author of BIP-361, posted on X this week that he does not like the proposal and hopes it never needs adoption, calling it "a rough idea for a contingency plan" rather than a finalized specification. Lopp argued freezing dormant coins — which he estimates at 5.6 million BTC — is preferable to letting future quantum attackers recover and dump them on the market.
Governance Deficit Deepens the Problem
Hoskinson's broader critique targets Bitcoin's lack of formal on-chain governance. Without a structured process, contentious upgrades are negotiated through developer mailing lists and social pressure, leaving the network unable to systematically resolve tradeoffs like quantum defense. This informal mechanism, he implied, only amplifies the risk of freezing Satoshi's legacy.