Dead Man's Switch

Teweldemedhin Aberra proposed a BIP to implement a dead man’s switch in order to help recover lost Bitcoins and bring them back into circulation. The primary concern with the loss of coin is that eventually there would not be enough coins in circulation to meet needs or demansd.

The proposed BIP suggests to expire out Bitcoins assigned to dormant addresses after a fixed period of time. A miner’s reward would be calculated based on the number of Bitcoins expiring. However this proposal met quick and strong opposition as it flies in the face of long-term storage plans.

Anyone with long term holdings, and especially cold storage users would have to occasionally make a transfer to keep their coins from going dormant. It was also brought up that by rewarding miners with funds that expire you possibly create harmful incentives for the miners to censor transactions of coins close to their expiration.

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