Controversial Proposal Emerges to Remove Bitcoin's 21 Million Supply Cap

Key Facts

In a move that challenges the core economic philosophy of cryptocurrencies, Eli Ben-Sasson, CEO of StarkWare, has proposed removing Bitcoin's fixed supply cap of 21 million units. According to reports, Ben-Sasson suggested allowing the supply to grow by up to 4% annually instead of maintaining the current hard cap. This proposal aims to replace the absolute scarcity model with a perpetual inflation model, representing a radical shift in the network's fundamental value proposition.

This proposal emerges as competition intensifies among Layer-2 protocols, with StarkWare seeking to enhance scaling efficiency while rival networks like Ethereum adhere to fee-burning models to reduce supply. In comparison to traditional assets, gold—to which Bitcoin is often compared—sees an annual mine supply increase of approximately 1% to 2% according to World Gold Council data. Market experts argue that tampering with the 21 million cap could weaken the asset's appeal as a hedge against traditional monetary inflation.

On the macro front, the market awaits the upcoming U.S. Non-Farm Payrolls report, which may influence risk appetite for digital assets, especially following the ISM Manufacturing PMI reading of 53.3 recorded in early July 2026.