Re: Against Allowing Quantum Recovery of Bitcoin

The discourse introduces a novel approach to address the potential threat posed by quantum attackers on cryptocurrency, specifically focusing on Bitcoin's vulnerability. This method suggests a compromise that doesn't entirely strip quantum attackers of their illicit gains but instead offers them a small percentage as an incentive while safeguarding the network's integrity for future transactions. The proposed strategy involves implementing a soft fork that mandates transactions involving quantum-vulnerable coins to allocate a significant portion of these funds—99%—to outputs governed by OP_CLTV, a Bitcoin script operation that enforces timelocks on transactions. These outputs would be locked for a period ranging between 10 to 100 years, effectively delaying their utilization and dispersing them over time to prevent market flooding and ensure long-term network security.

Furthermore, the proposal outlines that the remaining 1% of the funds could be spent freely but should also be subject to a timelock to regulate their entry into the market, thereby mitigating potential negative impacts on the currency's value. The timelock range for this portion is suggested to be between 10 to 30 months, with the possibility of splitting the total amount into multiple smaller outputs, each with its own specific timelock duration. This nuanced approach aims to balance incentivizing the detection of quantum vulnerabilities without rewarding malicious behavior excessively and preserving the stability and functionality of the blockchain by preventing sudden influxes of large volumes of currency.

This concept underscores the importance of proactive measures in securing digital assets against quantum computing threats. It reflects a deep understanding of both the technical aspects of blockchain technology and the economic principles that underpin its value and stability. By considering a mechanism that distributes the risk and reward across different temporal thresholds, it showcases an innovative way to bolster network security while maintaining fairness and market integrity.