[BIP Proposal] No burn, Quantum Migration Proposal, Quantum Secure Asset Verification & Escrow (QSAVE)

The Quantum Secure Asset Verification & Escrow (QSAVE) proposal introduces a novel approach to safeguarding Bitcoin from potential quantum computing threats. James Tagg, the author of this draft Bitcoin Improvement Proposal (BIP), suggests a non-sovereign wealth fund model for protective custody of Bitcoins that are vulnerable to quantum attacks. Unlike the Quantum Resistant Asset Migration Protocol (QRAMP) which renders coins unspendable, QSAVE aims to preserve the principal amount fully for the rightful owners while utilizing the generated returns to support the protocol and contribute to global public welfare. This initiative is designed as a preemptive measure against the appropriation of coins by quantum actors or the forced burning of coins by the community, both of which compromise Bitcoin's value promise.

Chain analysis has identified between 3.5 to 5.5 million Bitcoins as susceptible to quantum decryption due to exposed public keys. The QSAVE protocol seeks to address this vulnerability by advocating for educational outreach and the proactive migration of at-risk coins to quantum-safe addresses. Despite best practices like always sending change to fresh addresses being adopted by modern wallets, a significant number of Bitcoins remain at risk due to various factors including neglect by owners, inheritance issues, and underestimated threats.

QSAVE posits two main outcomes in the event of quantum computers cracking Bitcoin’s cryptographic defenses: quantum appropriation, where early users of quantum technology claim these coins, and forced burning, which would undermine Bitcoin’s role as a store of value. The proposal offers a third pathway, focusing on protective custody to maintain ownership rights and leverage dormant capital for humanitarian efforts.

The proposal outlines a detailed recovery process and consensus layer implementation strategies, varying from no action to hard fork requirements depending on the timing and level of consensus achieved. It also includes an implementation timeline, from initial launch and consensus building to enhanced infrastructure development and active recovery phases.

Moreover, QSAVE introduces a conservative strategy for managing the recovered funds, aiming for a 3-5% annual return without affecting market liquidity. Returns will be allocated to public goods such as open-source development and quantum security research, adhering strictly to the principle of preserving the original Bitcoin principal.

Ownership claims are verified through a comprehensive protocol involving cryptographic proof, government-issued identification, and historical transaction knowledge among other requirements. The governance structure entails a decentralized model with quadratic voting and multi-council setup to oversee technical, allocation, and audit functions.

The rationale behind QSAVE emphasizes aligning with Bitcoin’s core principles while addressing practical challenges posed by quantum computing advancements. It highlights the importance of legal clarity and jurisdictional considerations, drawing parallels with existing legal precedents for lost property to justify protective custody of digital assets.

In conclusion, the QSAVE proposal presents a thoughtful and systematic approach to protecting Bitcoin against quantum vulnerabilities, ensuring the security and preservation of assets while contributing to societal benefits. This initiative reflects a balanced response to the emerging quantum threat, offering a viable alternative to the more drastic measures currently under consideration within the cryptocurrency community.