Notable Bitcoin developer Jameson Lopp and a group of experts have released a draft proposal for BIP-361. This initiative suggests freezing coins that are vulnerable to quantum computers to safeguard the network from potential future attacks.

Approximately 1.7 million BTC stored in early P2PK addresses are at risk. This includes the reserves of Bitcoin's creator Satoshi Nakamoto, estimated to be worth $74 billion. The theft of these coins could trigger a significant crash in the price of the leading cryptocurrency.

The transition to post-quantum security involves three phases:

  1. Phase A. Three years after activation, network participants will no longer be able to transfer bitcoins to old-type addresses.
  2. Phase B. Five years later, old cryptographic signatures will become invalid. All coins on vulnerable addresses will be permanently frozen.
  3. Phase C. Developers will implement a recovery mechanism using zero-knowledge proofs. Owners of blocked addresses will be able to regain access to their assets using a seed phrase.

The authors describe the concept as a "personal incentive to upgrade." Frozen assets increase the value of coins held by other market participants. Conversely, funds extracted through quantum systems devalue the overall supply.

Lopp clarified that BIP-361 is not yet ready for integration. The document serves as a draft action plan in case of a sudden breakthrough in quantum computing.

The Bitcoin community has criticized the initiative. Users have labeled the idea as authoritarian and confiscatory, arguing that it invalidates part of the UTXO, which violates the fundamental philosophy of the network.

This quantum proposal is highly authoritarian and confiscatory, but of course, it’s from Lopp. 🚩 🚩

There is no good rationale for forcing the upgrade and rendering old spends invalid. Upgrade should be 100% voluntary. pic.twitter.com/tQvJVgdPRY

— Cato The Elder (@CatoTheElder17) April 14, 2026

In April, Bitcoin developer Olaoluwa Osuntokun introduced a prototype tool to protect Bitcoin wallets from potential quantum attacks.