Re: Against Allowing Quantum Recovery of Bitcoin

The discussions surrounding the transition to quantum-resistant signatures in the Bitcoin community have highlighted several critical concerns. These include debates on whether to freeze vulnerable funds or leave them exposed, how to execute the transition without jeopardizing Bitcoin's stability or causing a rift within the community, and strategies to prevent market turmoil if the transition is mishandled. A proposed solution involves a gradual, incentive-based approach rather than sudden changes that foster uncertainty.

A three-phase strategy is suggested to navigate the shift towards quantum-resistant signatures effectively. Initially, it is recommended to permit users to attach optional Post-Quantum Cryptography (PQC) keys to their Taproot addresses. This step should be taken immediately, well before the quantum threat materializes. The subsequent phase involves implementing a soft fork to disable vulnerable signatures. This fork would introduce a prolonged migration period of at least four years to accommodate a smooth transition. The final stage, triggered when the quantum threat becomes imminent, advocates for the gradual phasing out of old signatures instead of an abrupt cessation. To encourage adoption during this transition, incentives such as lower fees for transactions deemed secure and the provision of wallet tools designed to ease the shift are emphasized. Moreover, monitoring vulnerable addresses in real-time is proposed as a measure to mitigate risk.

The overarching aim is to manage the transition in a way that avoids panic and the feeling of coercion among Bitcoin users. Instead of resorting to a sudden "D-Day" where everything changes simultaneously, the deactivation of old Unspent Transaction Outputs (UTXOs) should occur gradually. This approach requires clear communication to ensure that all participants understand the process and do not feel unfairly disadvantaged. Ultimately, the goal is not about imposing rules or confiscating assets but rather offering options for an orderly transition that aligns with Bitcoin's underlying philosophy.