BitMEX Research Offers Alternative to BIP-361 Bitcoin Freeze Plan

Highlights:

• BitMEX Research proposed a canary watch system instead of automatically freezing older Bitcoin coins.
• The plan would trigger a freeze only if quantum theft is proven on-chain.
• The proposal aims to protect Bitcoin while avoiding premature action before any real attack.

BitMEX Research has suggested a new method for Bitcoin to address the potential threat from quantum computing without hastily freezing older coins across the network. In a research note released on Thursday, the team mentioned that Bitcoin could enter a “canary watch” state instead of automatically freezing coins at risk from quantum threats after a set deadline. With this plan, a complete freeze would only occur if there is on-chain proof that a quantum computer has actually taken Bitcoin.

The idea comes as debate around BIP-361 is getting stronger. BIP-361 is a draft Bitcoin proposal added to the BIP repository one day earlier. BitMEX Research said the proposal would first stop users from sending Bitcoin to addresses that may be at risk from quantum computers after three years. Then, two years later, it would stop people from spending coins from those older outputs.

The team said this remains controversial because it deals with one of Bitcoin’s most sensitive issues and could restrict coins before any real attack is proven.

BitMEX Proposes Quantum 'Canary Fund' Instead Of Bitcoin Freeze

BitMEX Research has proposed a new approach to address quantum risks without immediately freezing vulnerable Bitcoin $BTC.

The proposal introduces a “Canary Fund” that acts as an early warning system.

It proposes… pic.twitter.com/aE2FClBtXG

— BSCN (@BSCNews) April 16, 2026

A “Watch” Period Instead of An Automatic Freeze

Under BitMEX Research’s alternative plan, Bitcoin would not move directly into a full freeze after five years. Instead, the network would first enter a canary watch state, where it waits for real signs of danger. During this period, older coins that could be exposed to quantum risks would still work normally. However, if a clear warning signal appears on the blockchain, the freeze would activate immediately.

This warning signal would come from a special Bitcoin address created using a method called Nothing-Up-My-Sleeve Number (NUMS). In simple terms, this creates a real Bitcoin address where no one knows the private key. BitMEX Research said the public key would also be shared openly, and the network would treat this as a dedicated canary address. If anyone ever manages to spend coins from it, it would act as strong proof that a quantum computer is powerful enough to break Bitcoin’s current security.

How the Canary Fund Would Work

BitMEX Research also proposed a canary fund to make the idea more practical. Under this setup, users could send Bitcoin to the canary address as a bounty, which would reward anyone who proves that the quantum threat is real by successfully spending from it.

At the same time, the firm said users would not always have to give up their money permanently. One possible design would use a one-of-two multisignature setup. In simple terms, this means the funds could be controlled by either the user’s key or the canary system’s key. Because of that, users could still withdraw their Bitcoin before any warning event is triggered.

Still, BitMEX Research said the idea has some clear weaknesses. The canary fund may not be large enough to attract the first group that develops a powerful quantum computer. In that case, a company, lab, or attacker might ignore the canary address and go after other vulnerable Bitcoin wallets instead. The researchers also said the proposal would make the system more complex and could bring technical trade-offs that Bitcoin would need to consider carefully.

BitMEX Pushes a Measured Approach

The paper also suggests a safety window. Under this idea, Bitcoin would not block vulnerable transactions right away. Instead, those transactions could still go through, but the newly moved coins would stay temporarily locked for a set period. BitMEX said that delay could be very short or as long as 50,000 blocks, which is roughly one year. The purpose is to give the network more time to respond if one quantum attacker appears and others follow soon after.

BitMEX Research is not claiming this fully solves the quantum risk. Instead, it is pushing for a more careful approach. Its main argument is that Bitcoin should not trigger a full quantum freeze unless there is direct proof that the threat is real. In BitMEX’s view, that would keep the decision based on evidence rather than fear, while also giving users and the network more flexibility.

This discussion comes after Google researchers warned that future quantum computers could break the encryption used in Bitcoin and other digital systems sooner than previously expected. Google also said this could happen around 2029 if progress continues at the current pace.

🚨JUST IN: GOOGLE SETS 2029 DEADLINE AS QUANTUM THREAT LOOMS OVER BITCOIN

Google has set a 2029 deadline for post-quantum cryptography migration, warning quantum risks are approaching faster than expected.

The company says current encryption standards could eventually be… pic.twitter.com/LbGSmms3RQ

— BSCN (@BSCNews) March 26, 2026