When Bitcoin was originally created, Satoshi Nakamoto chose to make a limited supply of tokens with an entire whitepaper of other rules. One of the other rules that is coming up again slowly in Bitcoin is a process called halvening, but Jiang Zhuoer of Bitcoin Core wants to get rid of that process.
Zhuoer, founder of the BTC Top crypto mining, said that his Weibo post on February 10th that the goal of the Bitcoin Core development team is to increase the current supply of Bitcoin, which is presently at 21 million coins. Furthermore, the halvening process that lowers the reward for miners is yet another aspect of Bitcoin that Zhuoer aims to change.
The developers at Bitcoin Core are dedicated supporters of the original protocols that Satoshi set up for Bitcoin. They have remained in favor ever since August 2017 when the Bitcoin network last forked.
Zhuoer said, “This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate.”
At the time, Zhuoer included that the development team would continue to encourage others to follow their lead.
He spoke on how he had known the plan for Bitcoin Core to establish these changes, though he had doubts about how the changes would actually be implemented. Luckily, the developers have been making fast progress on the change with experiments involving Grin and discussing the topic at Satoshi’s Roundtable.
The information is not often released to the public regarding what happened during Satoshi’s Roundtable, but founder of Fold, Matt Luongo, attended the meeting and reported back on Twitter. He stated,
“I was the guy that said we might have to one day raise the Bitcoin supply cap. Fight me.”
Much of the reason that Bitcoin Core developers are in favor of the increased supply cap and stopping halvening is due to the changes that it will make in the censorship resistance of Bitcoin, improving it substantially.
Zhuoer says that the current resistance to censorship makes it a requirement to have smaller blocks, which inhibits scalability. If this halving event continues even one more time, the revenue that miners make will dwindle, and fewer miners will remain active in their validation of blocks. With fewer miners, the speed of the whole network slows down and will become a potential target for 51% attacks.
The only way to keep miners profiting is with the stopping of the halvening process. However, if the fixed cap is removed and the halvening ends, investors that hold Bitcoin would likely see a substantial drop in their own holdings and profit. While Zhuoer has expressed that the changes to the Bitcoin network do not elicit any reaction from him, he was adamant about leaving the fixed supply where it is.
Considering that the halvening is still about a year away, Zhuoer does not think there will be security issues on the blockchain right now. However, there is much to be seen in the network’s changes after the halvening occurs, if at all.