Subject: Re: [bitcoindev] [BIP Proposal] Proof-of-Activity Reclamation (PoAR)

From: Peter Todd <[email-masked]>
Date: Wed, 16 Jul 2025 20:49:44 +0000

On Tue, Jul 15, 2025 at 03:02:04PM -0700, Murch wrote:
> Hi Donald and all,
> 
> The idea of recycling dormant coins is one that has made the rounds several
> times before, including in the form of the "Bitcoin Dormant Recovery
> Proposal" just a couple months ago:
> https://github.com/bitcoin/bips/pull/1852
> 
> I don’t have the impression that the idea has been particularly popular, and
> as BIPs go, this one is missing crucial parts, e.g.:
> 
> • A more comprehensive motivation based on thorough analysis how
> redistributing dormant coins improves the system as this constitutes a
> departure of the status quo for the supply schedule

Worth noting that from an economic point of view redistributing genuinely lost
coins, and creating coins out of thin air, is essentially the same thing:
either way you are introducing coins into the active economy that were
previously not in economic circulation. In both cases you are diluting the
value of non-lost coins by increasing the total active supply, decreasing their
purchasing power proportionally.

If you want to argue for actually redistributing coins rather than just
creating new ones out of thin air - for whatever reason - you need to justify
why you want to risk confiscating coins that were not in fact lost.

-- 
https://petertodd.org 'peter'[:-1]@petertodd.org

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