Key Takeaways
Bitcoin developer Paul Sztorc announced plans for an August hard fork named eCash, which intends to reassign nearly $40 billion from Satoshi Nakamoto’s original Bitcoin stash to fund the new network's development.
"This will no doubt be a controversial decision,” Sztorc wrote on X on April 24. “But I think it is necessary, and in fact, ideal."
The new layer-1 blockchain will be a "near-copy" of the BTC Core client and use the SHA-256 hashing algorithm, according to Sztorc. It will launch with seven layer-2 scaling networks called “drivechains” designed to increase transaction throughput and add features like optional privacy, similar to Zcash.
The move is unprecedented, breaking the long-held taboo of touching Satoshi's coins to solve what Sztorc calls the "impossible funding problem" for new blockchain infrastructure. The funds would be manually redistributed to "high-quality investors (i.e., accredited)," a sharp departure from Bitcoin's open-access origin.
Sztorc has positioned the fork as a "permanent and sustainable fix to Bitcoin's problems," arguing that the current tech stack is weak. The core of his proposal rests on activating drivechains, a sidechain concept he has championed for years that allows for new features without altering Bitcoin's base layer. Bitcoin core developers have so far refused to merge the proposal.
The announcement drew immediate and mixed reactions from the crypto community. "Taking Satoshi coins is theft and disrespectful," said Bitcoin advocate Peter McCormack. Others were more dismissive of the project's long-term viability, with one commenter stating, "I give you two or three years to fold completely."
Sztorc differentiated his project from prior contentious forks like Bitcoin Cash (BCH), noting that the new coin will not use "Bitcoin" in its name. All existing Bitcoin holders would receive a corresponding amount of the new eCash tokens.
The plan highlights the ongoing tension within the Bitcoin ecosystem regarding its future development, particularly as layer-2 solutions on other chains see significant activity. On Ethereum-based L2s, for example, wrapped Bitcoin has been a major asset, though recent data from Bitcoin Layers shows over 16,400 BTC has left Ethereum L2s since January 1, while Coinbase's Base network has seen its wrapped cbBTC supply grow by over 8,300 BTC in the same period. Sztorc's drivechains aim to bring similar enhanced functionality directly to the Bitcoin ecosystem, secured by Bitcoin miners.
This article is for informational purposes only and does not constitute investment advice.
