Aligning privacy incentives in P2MR

In recent discussions, there has been a comparison between the adoption rates of different Bitcoin address formats, namely P2MR and P2TRv2. Despite incentives, historical trends suggest that new formats are slowly adopted within the Bitcoin ecosystem. For instance, even after seven years, the P2TR format secures only a minimal fraction of the Unspent Transaction Output (UTXO) set and an even smaller percentage of the total Bitcoin supply. This slow adoption pattern underscores the modest impact that incentives have on accelerating the uptake of new technologies in this space. Referencing reports from mempool.space and Galaxy Digital from 2025 provides empirical evidence to this claim.

The conversation also delves into the potential future scenarios involving Post-Quantum (PQ) cryptographic developments in the Bitcoin network. The proposed strategy involves initially deploying a PQ output type, which might attract a minority of UTXOs. Subsequent steps would be taken in response to significant cryptographic events, such as the breaking of a NUMS point or unauthorized access to high-profile Bitcoin accounts, which would trigger the activation of a pre-prepared rescue protocol. This protocol aims to protect the majority of UTXOs still not migrated to PQ wallets, potentially coupled with disabling Elliptic Curve (EC) spending. These actions could spark debates within the community, possibly leading to a fork, but with adequate preparation and the deployment of quantum-resistant technologies and signature schemes today, the resilience of Bitcoin can be maintained.

Further, an improvement related to BIP360 has been hinted at, which promises to reduce the cost associated with single-signer Schnorr transactions by 32 bytes. Details on this optimization will be elaborated in an upcoming mailing list post. This development could present significant efficiencies for Bitcoin transaction processes, emphasizing the ongoing efforts to enhance the scalability and economic efficiency of blockchain technology.