Back

eCash Fork Draws Criticism Over Treatment of Satoshi Nakamoto’s Bitcoin Holdings

Paul Sztorc says eCash would not move Bitcoin on the main network, but critics argue redistributing 500,000 Patoshi coins on a forked chain raises fairness, ownership, and governance concerns.

BTC
XEC

Fact Check
The claim is well supported by the cited reporting chain. CoinDesk's article, "A long-time developer wants to split Bitcoin blockchain and reassign Satoshi coins. The community is calling it a theft," explicitly says Paul Sztorc proposed eCash, scheduled for August 2026 at block height 964,000, and that existing BTC holders would receive equivalent eCash tokens. Bitcoin.com's "Drivechain Architect Paul Sztorc Unveils August Bitcoin Hard Fork With 1:1 BTC Coin Split" independently matches the August 2026 timing and 1:1 distribution, and adds that coins associated with Satoshi would be controversially reallocated to investors. Odaily's flash report aligns with both and specifically frames the Satoshi-address plan as having sparked backlash. The provided CoinDesk X post also corroborates that the community reaction was strongly critical. I found no authoritative evidence in this run contradicting the core factual elements.
    Reference: 12
Summary

LayerTwo Labs CEO Paul Sztorc announced eCash, a Bitcoin fork planned for August, under which Bitcoin holders at the snapshot would receive the new asset at a 1:1 ratio. The proposal has drawn criticism because it plans to redistribute 500,000 Patoshi coins to investors, while Sztorc argues he cannot move any Bitcoin from Satoshi-era addresses and is not attempting to do so on the main Bitcoin network. The dispute instead centers on how balances are assigned on a separate forked chain, with critics saying rewriting balances tied to addresses the user does not control creates harmful precedent around ownership, immutability, and governance. Earlier reporting also described the project as adding Drivechains and targeting August 2026 at block height 964,000, though the newer report does not confirm those specifics.

Terms & Concepts
  • Patoshi coins: A term commonly used for early mined Bitcoin believed by many researchers to be linked to Satoshi Nakamoto’s mining pattern.
  • Bitcoin fork: A split from the Bitcoin blockchain that creates a separate network with its own rules and assets.
  • Drivechain: A proposed Bitcoin sidechain system that would let users move Bitcoin to separate chains with different features while remaining linked to the main network.