So, I’m going to try to make this quick and clear.
There is an issue within cryptocurrencies that has been bothering me.
I believe everybody is aware of this issue but I’m surprised it has not been addressed, even within the Cardano community or any other community (maybe it has and I’m not aware of it ?). Anyway, the issue I want to expose and solve is the locked-up, lost and forgotten cryptocurrencies.
For example the “1 million bitcoins of Satoshi Nakamoto”, that are forever lost and never can be retrieved unless Satoshi himself is alive or somebody finds his keys somehow… There are roughly 3 million bitcoins lost, and that’s just in 11 years, what will happen in the next 100 years ? This isn’t a huge deal if your aim is to make the cryptocurrency as scarce as possible, consequently rising the price up. However, I believe in the case of Cardano, which seeks mass adoption, this is a problem and will be a big problem in the future (maybe not in the next 10 to 50 years but what about 100 or a 1000 years ?). When staking is available, what will happen when millions of people holding millions of “staked” ada lose their keys or die (without having communicated their keys to their family members) ? Also keep in mind the millions of “dust” (tiny amounts of) ada left on millions of accounts (throughout our yet to come history).
To resolve this issue, I believe the answer could be to build in a backup mechanism. It could a built in default setting that transfers inactive funds after a certain period of time (let’s say 5,10 or 20 years) into the treasury or can be remined. So, there could be this default setting for every wallet on the blockchain, but furthermore the user could define backup wallet addresses, to which the funds could be transferred to after a defined period of time (defined by the user) instead of the treasury. To give an example, I could choose to program my funds to be transferred equally (or non-equally) between my family members after 2 years, in case I suddenly die or lose my keys somehow. You could call it a heritage system within the blockchain itself.
Thanks for your attention.
I’d love to hear your thoughts.