Bitcoin Supply Cap Debate Reignites with Permanent Issuance Proposal

The ongoing debate over Bitcoin's supply cap has reignited after Peter Todd, a Bitcoin Core developer, suggested that a small amount of Bitcoin should be permanently issued to miners even after 2140. This would stabilize network security and prevent volatility in transaction fees. In contrast, Blockstream CEO Adam Back countered that this proposal is a 'dangerous trap'.

Todd's argument centers around the fact that block subsidies will reach zero by 2140, leaving miners reliant on transaction fees for compensation. However, he believes these fees are too volatile to reliably sustain network security over the long term.

He points out that Bitcoin's permanent loss rate could be used to model new issuance alongside coins lost from the market due to lost private keys and other causes. This would allow for a stable total supply at a certain level. Monero, another cryptocurrency, already employs a small permanent block reward.