"PACTs" Proposal to Counter Quantum Computer Threats, Aiming to Protect Dormant BTC

c
Will the PACTs proposal be formally submitted as a numbered BIP (Bitcoin Improvement Proposal) by the end of June 2026?
57%
NO
📅 Resolution: 2026-05-15 🎯 Brier: 0.19 (c) 🔗 All Predictions
What Happened

⚡ What Happened

Researchers at Paradigm have proposed a new model called "PACTs" to protect dormant Bitcoin from the threat of private key extraction by quantum computers. The groundbreaking aspect is the ability to prove ownership and maintain privacy without on-chain transactions, with a focus on protecting long-unused addresses, including the estimated 1 million BTC belonging to Satoshi Nakamoto. The next point of attention is whether it will be formally adopted as a BIP (Bitcoin Improvement Proposal).

The threat of cryptographic breakthroughs by quantum computers has been theoretically recognized, but concrete defensive proposals have been limited. In particular, early P2PK-format addresses have their public keys exposed, making them the most vulnerable to quantum attacks. Paradigm is one of the largest crypto VCs alongside a16z, and the fact that the proposal comes from its research division gives it significant influence over the industry. The core of PACTs lies in "proof of ownership without on-chain transactions," meaning dormant wallet owners can defend themselves without sacrificing privacy. While the timeline for practical quantum computing remains uncertain, advances by Google and IBM are shifting the question from "if" to "when." Bitcoin protocol changes require long-term consensus building, which makes it meaningful to begin discussions now.

🔍 Behind Paradigm's proposal is the self-interest of protecting its portfolio companies and Bitcoin ecosystem investments from quantum risk. Including Satoshi's assets as a target can also be seen as a PR strategy to maximize attention. More fundamentally, this is groundwork for the highly political topic of a "hard fork for quantum countermeasures" within the Bitcoin community. The handling of dormant assets is directly connected to inheritance issues and lost coin processing, touching on the fundamental principle of Bitcoin's inviolability, making it highly likely to escalate into a governance debate beyond a mere technical proposal.

📰 Source: CoinPost

Causal Analysis

🧭 Why This Is Happening Now

Causal Map
Referenced Knowledge
entity:xi-jinpingentity:bitcoindomain:crypto

entities=xi-jinping,bitcoin / domain=crypto

1
This topic falls under the `crypto` domain, where Nowpattern's average Brier score is 0.1818. Treat this as a domain prone to overconfidence.
2
`bitcoin`: If average confidence on MISSes is high, there is an overconfidence tendency in predicting the actions of this entity/organization.
3
`bitcoin`: Recommendation**: Consider adjusting probabilities 10–15% lower for new predictions involving this entity.
Prediction

🔮 Next Scenarios

● Optimistic 20% ● Base 50% ● Pessimistic 30%
🟢 Optimistic 20% PACTs is formally submitted as a BIP, gains broad community support, and testnet trials begin within 2026.
🔵 Base 50% Academic discussion intensifies, but formal adoption as a BIP does not materialize, and comparative evaluation with other quantum-resistant proposals drags on.
🔴 Pessimistic 30% The proposal faces strong backlash from Bitcoin maximalists as a "violation of inviolability" and is effectively shelved.

🎯 Incentive Map

Player True Incentive Underlying Weakness Predicted Action
ParadigmWants to defend its Bitcoin-related investments from quantum risk while establishing influence at the protocol layerFundamental misalignment between VC timelines and the Bitcoin community's cautious consensus-building culture. Needs to show research results to investorsPrioritize paper publication and media exposure first, then take time for technical refinement and political groundwork before BIP submission
Bitcoin Core DevelopersWant to maintain protocol stability and backward compatibility while addressing legitimate technical threatsTrauma from past block size wars creates strong wariness toward large-scale protocol changesTechnically scrutinize PACTs while opposing hasty adoption, demanding comparative evaluation with multiple alternatives
Satoshi Nakamoto (Absent Symbol)Absence itself is the greatest incentive structure. Since no one can speak on their behalf, every side invokes "Satoshi's will"The very absence blurs the line between protecting and confiscating dormant assets, making it a political toolNo action. However, their very existence amplifies the legitimacy and emotional intensity of the debate

⚠️ Pre-Mortem — Conditions Under Which This Prediction Fails

  1. If Paradigm completes the BIP draft faster than expected and makes a formal submission bypassing community consensus building, the NO prediction would be wrong.
  2. A major quantum computing breakthrough (e.g., successful cracking of RSA-2048) could heighten urgency and accelerate BIP submission — a structural risk.
  3. There is a possibility that one's own preconception about the slowness of the Bitcoin community's BIP adoption process underestimates the exceptional speed that Paradigm's political influence and financial resources could enable.

Fear-Setting / When this prediction fails

  1. This probability fails if Paradigm submits a formal BIP draft within weeks of the announcement, bypassing typical community deliberation timelines.
  2. This probability fails if a quantum computing milestone (e.g., breaking current cryptographic standards) creates urgent pressure for immediate Bitcoin protocol changes.
  3. This probability fails if Bitcoin Core developers publicly endorse PACTs and fast-track the BIP process due to pre-existing private discussions.
🎯 Resolution Criteria

HIT Condition: HIT if PACTs is NOT formally registered with a BIP number in the bitcoin/bips repository.

Resolution Date: 2026-05-15

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