Bitcoin Developer's Plan to Create New Blockchain and Redistribute Satoshi Coins Sparks Outrage

A long-standing Bitcoin developer, Paul Sztorc, has unveiled a contentious plan to create a new version of the Bitcoin blockchain, known as eCash, which would involve a hard fork in August 2026. Under this proposal, existing Bitcoin holders would receive equivalent tokens on the new network at no cost. However, the community is taking issue with the aspect of the plan that involves reassigning coins linked to Bitcoin's elusive founder, Satoshi Nakamoto. This concept, known as a hard fork, essentially entails copying the existing Bitcoin code to launch a separate version, allowing for a divergence in the blockchain's history and the creation of a new token. Sztorc's eCash hard fork aims to introduce a new chain called eCash, complete with its native eCash tokens. According to Sztorc, individuals holding 4.19 BTC at the time of the fork would receive 4.19 eCash, which they could then sell, keep, or disregard. The proposed fork is scheduled to occur at Bitcoin block height 964,000 in August 2026, with a coin-splitter tool to be released to facilitate the clean separation of BTC from eCash. The new chain would be a near-replica of the existing Bitcoin blockchain, with the addition of Drivechains, a scaling architecture that Sztorc initially proposed in 2015. Drivechains are essentially sidechains tethered to the Bitcoin blockchain, enabling seamless movement of BTC between the main chain and sidechains without altering Bitcoin's base layer. Each sidechain can operate under its own set of rules and features, allowing developers to build new capabilities on top of Bitcoin without requiring the entire network to adopt those changes. Seven Drivechains are already in development, including a privacy chain modelled on Zcash, a prediction market called Truthcoin, a decentralised exchange called CoinShift, and a quantum-resistant chain called Photon. The aspect of the plan that has sparked controversy is Sztorc's intention to utilize coins that would have been allocated to Satoshi Nakamoto's equivalent addresses on the new eCash chain to attract investors prior to the fork. This decision has been met with criticism from the community, with some labelling it as outright theft. A potential hard fork would bring Bitcoin's entire transaction history to the new chain, resulting in every bitcoin balance, including Satoshi's 1.1 million bitcoin, being reflected as an equivalent eCash balance on the new chain. As per the plan, fewer than half of the Satoshi-equivalent eCash coins would be assigned to investors. The precise mechanism behind this process remains unclear, but it appears to be a promised credit following a successful hard fork. Sztorc argues that this plan will provide collaborators with a tangible incentive to get involved early, thereby building momentum and ensuring the project is completed ahead of launch. Without this mechanism, the project risks becoming a 'zombie project' that ships unfinished or, worse, a centralized project where a small group of developers gains disproportionate control over the chain's direction. The industry response to the plan has been overwhelmingly negative, with Bitcoin advocate Peter McCormack stating that taking Satoshi coins is 'theft and disrespectful'. Josh Ellithorpe, chief technology officer at Pixelated Ink, expressed concerns about the precedent it sets and how it could eventually pose a risk to everyone's BTC holdings, saying 'eCash, setting the precedent that they can and will steal coins. Now it's Satoshi, but it could be anyone later.'