Bitcoin Developer Paul Sztorc Plans August 2026 eCash Fork: What Holders Need to Know

Paul Sztorc, CEO of LayerTwo Labs and a longtime Bitcoin developer, has announced plans for a Bitcoin hard fork called eCash, scheduled for August 2026. The fork is targeted around Bitcoin block 964,000.

In an announcement on April 24, Sztorc described eCash as a new blockchain that would replicate Bitcoin’s entire transaction history up to the fork point. Holders of Bitcoin (BTC) at the time of the split would receive an equivalent amount of eCash on the new chain—1 eCash for every 1 BTC held.

The eCash network is designed to resemble Bitcoin’s base layer, with key technical similarities:

• Layer 1 will function as a near-copy of Bitcoin Core, using the same SHA-256d mining algorithm.
• The chain will feature a one-time difficulty reset to its minimum value at launch.
• BIP300 and BIP301 will be activated via CUSF, enabling Drivechain-style sidechains without altering Bitcoin itself.

BIP300 outlines hashrate escrows for sidechains, while BIP301 introduces blind merged mining—a mechanism allowing SHA-256d miners to earn revenue from other chains without running their full software.

Sztorc emphasized that BTC balances remain unaffected by the eCash fork. In a later clarification, he confirmed that Satoshi Nakamoto would receive 600,000 eCash instead of the initially reported 1.1 million eCash. He reiterated that Bitcoin holders do not need to take any action to preserve their BTC, as balances are governed solely by Bitcoin software, consensus rules, and private keys.

The practical implications for Bitcoin holders depend on whether exchanges, wallets, custodians, miners, and tax authorities recognize eCash as a supported asset. Until such recognition occurs, the debate centers on legitimacy, incentives, and the precedent set by a new ledger.

What the eCash Fork Copies from Bitcoin

The proposed eCash chain employs a standard hard-fork mechanism. At the designated block height, Bitcoin’s entire transaction history would be duplicated into the new network. For example, a wallet holding 4.19 BTC at the split would receive 4.19 eCash on the new chain. Holders would then have the option to keep, sell, or ignore these coins, provided the new chain launches and they can safely access them.

The eCash base layer is intentionally designed to mirror Bitcoin Core. Sztorc described it as a near-copy, with the following features:

• SHA-256d mining algorithm, identical to Bitcoin.
• A one-time difficulty reset to the minimum value at genesis.
• Activation of BIP300 and BIP301 via CUSF to integrate Drivechain-style sidechains.

The Drivechain components are intended to operate in the background for most holders, with no direct impact on their Bitcoin balances.

Current Status and Next Steps

While the LayerTwo Labs CUSF enforcer repository shows active development, and the company’s download page offers BitWindow software related to the Drivechain stack, the final eCash launch software, replay protection rules, and user-grade splitting tools have not yet been verified. Ordinary holders should not treat the fork as operational until these components are confirmed.

To preserve their Bitcoin holdings, holders do not need to take any claim action during the proposal phase. They can keep their seed phrases private, avoid importing keys into new software, and ignore any claim pages until the chain is officially launched. The ecosystem—including exchanges, wallets, and tax authorities—will ultimately determine whether eCash is recognized as a valid asset. This decision will shape the fork’s real-world impact and relevance.