Rebeca Moen
Apr 16, 2026 04:21
BitMEX Research offers wait-and-see approach to quantum threats with bounty-based canary fund, countering controversial BIP-361 coin freeze proposal.
BitMEX Research has thrown a curveball into the heated Bitcoin quantum security debate, proposing a bounty-based “canary fund” that would only trigger coin freezes if someone actually proves quantum computing can crack Bitcoin’s cryptography.
The proposal, published Thursday, offers a middle ground in a community increasingly divided over how to handle the estimated 25% of BTC sitting in quantum-vulnerable addresses—coins worth roughly $368 billion at current prices of $74,576.
How the Canary Works
BitMEX’s system creates a special Bitcoin address using what cryptographers call a “Nothing-Up-My-Sleeve Number”—essentially an address where nobody knows the private key, but which a sufficiently powerful quantum computer could theoretically crack.
Anyone can donate BTC to this address as a bounty. The logic? If quantum computers become capable of stealing Bitcoin, a rational actor would drain this honeypot first. The moment someone spends from the canary address, it proves the threat is real and automatically activates protective freezes.
Until then, old coins remain spendable. Bounty contributors can withdraw anytime using multisig arrangements.
The BIP-361 Backlash
This proposal directly responds to BIP-361, introduced Tuesday by Jameson Lopp and other developers, which suggested freezing dormant quantum-vulnerable coins after a five-year migration window. The community response was brutal—critics called it “authoritarian” and “confiscatory.”
Lopp has since walked back expectations, calling BIP-361 a “rough sketch” rather than activation-ready code. “I know folks don’t like it. I don’t like it myself,” he wrote on X Wednesday. “I wrote it because I like the alternative even less.”
The Bitcoin Policy Institute warned just last week that quantum advances may be compressing the timeline for network upgrades, with some researchers now estimating cryptographically relevant quantum computers could emerge between 2029 and 2035.
Complexity vs. Controversy
BitMEX acknowledges their approach adds technical complexity. The canary watch state would still allow quantum-vulnerable transactions after BIP-361’s proposed five-year deadline, but with outputs locked for a safety period.
“While this approach adds complexity and risk, given how controversial any coin freeze is, mitigating the impact of the freeze using this type of system may be worth consideration,” BitMEX Research stated.
The real question facing Bitcoin developers isn’t whether to prepare for quantum threats—it’s whether the community can reach consensus on any solution before the threat materializes. With approximately $368 billion in potentially vulnerable coins and no clear timeline on quantum advancement, that debate just got more interesting.
Image source: Shutterstock
