StarkWare CEO Proposes 4% Annual Inflation to Replace Bitcoin Supply Cap

Bitcoin has relied on a maximum supply of 21 million coins and a halving mechanism that operates roughly every four years to create scarcity since its 2009 launch. Mining is expected to be completed around 2140. Because assets cannot be recovered when holders lose their private keys, the supply actually available for circulation could continue to decline, potentially affecting Bitcoin’s long-term roles as a payment method and store of value.

StarkWare CEO Eli Ben-Sasson recently proposed scrapping Bitcoin’s 21 million supply cap and replacing it with a fixed annual inflation rate of 4% to replenish coins permanently removed from circulation through lost private keys. The proposal quickly sparked debate in the community, with opponents arguing that Bitcoin’s fixed supply is central to what distinguishes it from fiat currencies and should not be changed.