[BIP Proposal] Proof-of-Activity Reclamation (PoAR)

The discourse around the "Bitcoin Dormant Recovery Proposal" has resurfaced, an initiative aimed at redistributing dormant Bitcoin coins. This proposal, documented in a recent pull request on GitHub (GitHub Pull Request), revisits the concept of recycling inactive cryptocurrencies to enhance the system's efficiency. Despite its innovative approach, the proposal has encountered skepticism within the community, primarily due to its departure from traditional supply schedule norms and the lack of detailed specifications critical for its acceptance and implementation.

Key criticisms of the proposal include the absence of a thorough motivation that justifies the redistribution of dormant coins and how such an action would benefit the overall Bitcoin system. The proposal lacks essential details such as the rate and mechanism of redistribution, as well as a specification for verifying out-of-band activity proof, which is crucial for incorporating this new information as consensus-critical data within the Bitcoin network. Moreover, questions arise regarding the choice of reclaiming dormant coins during halving events instead of allowing unspent transaction outputs (UTXOs) to expire after a predetermined number of blocks.

Additionally, the proposal does not sufficiently address issues of backward compatibility, particularly how to execute the suggested hard fork without disrupting existing operations. The current state of the proposal suggests it is premature for serious consideration, necessitating further refinement. The critique underscores the importance of a more robust argumentation and rationale to support such a significant shift in Bitcoin's economic model, indicating that any change to the foundational principles of Bitcoin must be approached with comprehensive analysis and careful deliberation.