Bitcoin Developer Paul Sztorc Proposes August Hard Fork with Satoshi Coin Redistribution Plan

Bitcoin is on the brink of another contentious hard fork after long-time developer Paul Sztorc announced plans for an August launch of eCash, a proposal that includes a radical redistribution of Satoshi Nakamoto’s purported 1.1 million Bitcoin stash.

At current prices, Sztorc’s plan to reassign up to half of those coins—nearly $40 billion—would mark the first time a Bitcoin hard fork has ever touched Satoshi’s holdings. Previous forks, including Bitcoin SV, Bitcoin Cash, and Bitcoin Gold, avoided altering the original distribution of coins mined by Bitcoin’s anonymous creator.

In a post on X (formerly Twitter) on April 24, Sztorc acknowledged the controversy but defended the move as necessary:

"This will no doubt be a controversial decision. But I think it is necessary, and in fact, ideal."

Why Sztorc Says He Must Redistribute Satoshi’s Coins

Sztorc argues that hard forks face an impossible funding dilemma: how to build infrastructure before launch when there is no revenue and no tokens to sell. His solution is to repurpose a portion of Satoshi’s coins to finance development on the new blockchain.

Paul Sztorc did not immediately respond to a request for comment from DL News.

What Is eCash? Drivechains and Layer 2 Networks

Unlike Bitcoin Cash’s 2017 fork—which increased block size—eCash will activate drivechains, Sztorc’s proposal for scalable Layer 2 networks that Bitcoin core developers have long refused to merge.

Drivechains are sidechains secured by Bitcoin miners, enabling new features without altering Bitcoin’s base layer. This would bring programmability to Bitcoin similar to what other blockchains already offer.

Sztorc said seven Layer 2 networks are already in development, including:

• A privacy-focused chain similar to Zcash
• A prediction market platform
• A decentralized exchange
• A quantum-resistant blockchain

Bitcoin holders will receive an equal amount of eCash coins in the fork. For example, holding 4.19 Bitcoin would result in receiving 4.19 eCash.

The Controversial Investor Redistribution Plan

Beyond the coin redistribution, Sztorc proposes manually allocating a portion of Satoshi’s coins to "high-quality investors (i.e., accredited)"—a move that has raised significant concerns.

Bitcoin’s origin story from 2009 is rooted in a fair launch: anyone with a computer could mine using the same hardware and difficulty. There were no presales, venture capital, or insider allocations. Satoshi mined alongside early users with equal opportunity.

Sztorc’s plan inverts that ethos, introducing preferential access for accredited investors and raising critical questions:

• Who qualifies as a "high-quality investor"?
• What are the terms of the coin distribution?
• Over what timeframe will the coins be reassigned?
• What risks arise if investors sell the coins en masse?

Understanding Bitcoin Hard Forks

A hard fork occurs when a blockchain splits, creating a new chain that inherits the history of the original. Users holding coins on the original chain automatically receive an equal amount on the new chain.

Hard forks are often contentious because they:

• Fragment the community
• Split liquidity across chains
• Force users to choose between competing visions of Bitcoin’s future

Despite these challenges, Sztorc is moving forward with his plan. He has spent years advocating for drivechains and now sees this fork as a way to bring scalable Layer 2 solutions to Bitcoin.