Veteran Developer's Plan to Split Bitcoin Blockchain and Reclaim Satoshi's Coins Sparks Outrage

A long-standing Bitcoin developer, Paul Sztorc, has unveiled a radical proposal to create a separate version of the Bitcoin blockchain, dubbed eCash, which would involve copying the existing code and launching a new network in August 2026. As part of this plan, existing Bitcoin holders would receive equivalent tokens on the new network at no cost. However, the community is up in arms over the funding aspect, which involves reallocating coins linked to Bitcoin's elusive founder, Satoshi Nakamoto. A hard fork can be likened to a railway line diverging into two distinct paths, where trains originating from the same station eventually reach different destinations. This occurs when developers fail to reach a consensus on proposed changes to Bitcoin's code, resulting in the creation of a separate blockchain that shares Bitcoin's history up to the point of divergence but thereafter follows its own set of rules, features, and direction. The proposed eCash hard fork will introduce a new chain with native eCash tokens, with the fork scheduled to occur at Bitcoin block height 964,000 in August 2026. A coin-splitter tool will be made available to facilitate the clean separation of BTC from eCash. The new chain will be a near-replica of the existing Bitcoin blockchain, with the notable addition of Drivechains, a scaling architecture initially proposed by Sztorc 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 rules and features, allowing developers to introduce new capabilities without requiring the entire network to adopt these changes. Sztorc's plan 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 has sparked controversy, with some members of the community labeling it as outright theft. The 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. The plan involves assigning fewer than half of the Satoshi-equivalent eCash coins to investors, although the precise mechanism remains unclear. Sztorc argues that this approach will provide collaborators with a tangible incentive to participate early, thereby building momentum and ensuring the project is completed ahead of launch. However, the response from the industry has been overwhelmingly negative, with concerns being raised about the precedent it sets and the potential risks it poses to everyone's BTC holdings.