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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn 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.
Looking ahead, traders are monitoring the reaction of the developer and mining community to these controversial theories, noting that authoritative price data is currently unavailable for immediate market impact assessment. 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.