Bitcoin Developer Proposes eCash Hard Fork, Sparking Controversy Over Satoshi Coin Reassignment

Veteran Bitcoin developer Paul Sztorc has unveiled a proposal for a hard fork of the Bitcoin blockchain, dubbed eCash, which aims to launch a separate version of the network in August 2026. The plan involves copying Bitcoin's code and giving existing bitcoin holders equivalent tokens on the new network. However, the community is objecting to the funding aspect, which entails reassigning coins associated with Bitcoin's mysterious founder, Satoshi Nakamoto. A hard fork can be likened to a railway line diverging into two separate paths, allowing for distinct destinations. When developers cannot agree on changes to Bitcoin's code, they create a separate chain that shares Bitcoin's history up to the point of divergence but then proceeds with its own set of rules, features, and direction. Sztorc's eCash hard fork will introduce a new chain with native eCash tokens, with holders of BTC receiving equivalent eCash tokens. The fork is slated for Bitcoin block height 964,000 in August 2026, with a coin-splitter tool to be released to facilitate the separation of BTC and eCash. The new chain will be a near-replica of Bitcoin's existing blockchain, with the addition of Drivechains, a scaling architecture proposed by Sztorc in 2015. Drivechains are sidechains linked 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, effectively 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 and a decentralised exchange called CoinShift. The contentious aspect of the proposal involves using coins that would have gone to Satoshi Nakamoto's equivalent addresses on the new eCash chain to attract investors before the fork goes live. This decision has sparked outrage in the community, with some labelling it outright theft. The plan 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. Less than half of the Satoshi-equivalent eCash coins will be assigned to investors, with the precise mechanism remaining unclear. Sztorc argues that this plan will provide collaborators with a tangible incentive to get involved early, build momentum, and complete work ahead of launch. However, the industry response has been overwhelmingly negative, with concerns about the precedent it sets and the potential risks to BTC holdings. Bitcoin advocate Peter McCormack has denounced the proposal, stating that taking Satoshi coins is theft and disrespectful. Josh Ellithorpe, chief technology officer at Pixelated Ink, has expressed concerns about the precedent it sets and the potential risks to everyone's BTC holdings.