Ben-Sasson Revives Bitcoin Supply Cap Debate with Proposal for Annual Issuance

StarkWare CEO Eli Ben-Sasson has reignited the debate over Bitcoin's fixed supply cap, suggesting that it doesn't make sense in light of lost private keys. According to Ben-Sasson, as more coins become unreachable due to lost keys, a fixed cap could make Bitcoin less useful over time.

Ben-Sasson proposed replacing the 21 million cap with an annual issuance rule of up to 4%, roughly matching global population growth. However, this idea was met with resistance from Bitcoin supporters, who see the 21 million limit as a core feature and changing it would make BTC look more like other crypto assets.

Some users pointed out that Bitcoin's divisibility, allowing for small units of satoshis, could mitigate the issue of lost coins. Ben-Sasson countered that even these smaller units would trend towards zero over time if private keys continue to be lost.

An alternative proposal emerged from Zcash founder Bryce 'Zooko' Wilcox, suggesting a burn-and-reissue model that keeps the 21 million cap intact while addressing miner incentives and network sustainability.