BIP-361: Bitcoin Quantum-Proofing Plan Sparks Backlash Over Coin Freezing Proposal

Lopp Proposes Freezing Quantum-Vulnerable Bitcoin

Bitcoin developer Jameson Lopp, alongside a group of experts, has released a draft proposal dubbed BIP-361. The document outlines a strategy for transitioning Bitcoin to post-quantum cryptography, with its most controversial element being the forced freezing of coins held on legacy address types that could theoretically be compromised by sufficiently powerful quantum computers.

Approximately 1.7 million BTC stored on early P2PK addresses are considered at risk. This includes reserves attributed to Bitcoin's creator Satoshi Nakamoto, valued at an estimated $74 billion. Theft of these coins via quantum technology could trigger a massive crash in Bitcoin's price.

Three-Phase Migration to Quantum Resistance

The proposal lays out a graduated transition plan:

• Phase A — Three years after activation, network participants would no longer be able to send bitcoin to legacy address types.
• Phase B — Five years in, old cryptographic signatures would become invalid. All coins remaining on vulnerable addresses would be permanently frozen.
• Phase C — Developers would deploy a recovery mechanism using zero-knowledge proofs. Owners of frozen addresses could regain access to their assets by proving ownership through their seed phrase.

The authors described the concept as a "personal incentive to upgrade." Their reasoning: frozen coins make the remaining circulating supply more valuable, whereas coins stolen by a quantum attacker would dilute value for all holders.

Why This Matters

BIP-361 touches on one of Bitcoin's most sacred principles — the inviolability of funds at any address. If ever activated, the proposal would render certain UTXOs invalid not because of any action by their owners, but by protocol-level decree. This sets a precedent where the network could determine the fate of coins based on address type, which runs counter to the ethos of decentralization and voluntary participation.

At the same time, advances in quantum computing will eventually force the question of how to protect early addresses with exposed public keys. BIP-361 represents an attempt to draft an action plan before a sudden breakthrough makes the threat immediate.

Community Reaction: "Authoritarian Confiscation"

The Bitcoin community responded with sharp criticism. Users characterized the idea as authoritarian and confiscatory, arguing that it effectively nullifies the rights of certain UTXO owners.

"This quantum proposal is highly authoritarian and confiscatory, but of course, it's from Lopp. 🚩🚩 There is no good rationale for forcing the upgrade and rendering old spends invalid. Upgrade should be 100% voluntary." — Cato The Elder (@CatoTheElder17), original post

Lopp clarified that BIP-361 is not ready for implementation and serves as a contingency blueprint in case of a rapid breakthrough in quantum computing. The document is meant to spark discussion rather than trigger immediate protocol changes.

Parallel Efforts in Quantum Defense

Earlier in April, Bitcoin developer Olaoluwa Osuntokun unveiled a prototype tool for protecting Bitcoin wallets against potential quantum attacks — one that does not require a soft fork. The growing attention to post-quantum resilience among developers highlights the urgency of the issue, even as the proposed solutions diverge sharply in philosophy and approach.