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Peter Todd renews Bitcoin 21M cap debate as fees stay a small share

Todd said fee revenue alone has not been proven to reliably fund proof-of-work security at Bitcoin’s scale as the block subsidy declines.

Reported · Written up by our desk · Market Structure

Early Bitcoin developer Peter Todd has reopened debate over whether Bitcoin should stick to a 21 million-coin limit, arguing the question is becoming more urgent as block subsidies shrink and security may rely increasingly on transaction fees, according to CryptoSlate.

Todd’s renewed discussion, prompted by a viral Aug. 16 clip, focuses on whether a long-term “tail emission” design could help fund proof-of-work security after the scheduled new issuance ends. He did not call for an immediate cap change, and he did not present a new Bitcoin Improvement Proposal or activation plan, CryptoSlate reported.

In his earlier July 23 talk at Bitcoin++ Toronto, Todd described Bitcoin’s shift from subsidy-supported security toward a fee-dominant model as an uncertain transition. He said there is no proven example showing that fees alone will work once the network moves to a fee-led regime at Bitcoin scale.

CryptoSlate also noted a snapshot used in the debate, where miners collected 2.443 BTC in daily transaction fees versus about 450 BTC in daily subsidy, with fees representing roughly 0.5% of combined miner compensation. The outlet said the current fee level provides only a snapshot of the gap between fees and subsidy, not evidence of how markets will behave later as new issuance continues to fall.

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