In case you haven’t heard, Bitcoin (BTC) has a looming security problem.

The security of Bitcoin—and all of its forks—relies on miner incentives. These incentives come from the block reward, which is currently made up of two parts: a block subsidy (new coins created with each block) and transaction fees. Right now, the subsidy dominates. At the time of writing, BTC’s block reward includes a subsidy of 3.125 BTC, with some additional income from transaction fees.

But here’s the catch: every 210,000 blocks, the subsidy halves. By 2028, it will drop to 1.5625 BTC, and by 2032, just 0.781250 BTC. You might think the price can keep doubling to make up for this, but the math gets shaky fast as the subsidy trends to zero.

This is why Satoshi Nakamoto envisioned a future where transaction fees would replace the subsidy. Ideally, there’d be enough demand for block space that fees alone would incentivize miners to secure the network.

But Bitcoin’s design runs into a fundamental problem: limited block space.

With a 1MB block size limit (or ~4MB “block weight” under SegWit), you can only fit a few thousand transactions per block. For fees alone to replace the subsidy, each transaction would need to pay around 0.001 BTC in fees—that’s about $100 at current prices. That might be fine if you’re moving large sums, but it’s completely impractical for everyday transactions. While it may be possible for large transactions to pay for security, why would we use one form of money to pay for expensive things, and another form of money for everything else?

We don’t pay for coffee with dollars, and buy houses with gold, do we?

Enter eCash

This is where eCash (XEC) takes a different approach.

Instead of relying on high-value, low-volume transactions, eCash aims to scale massively. The vision is to support millions of transactions per second, enabling a security model based on many small fees rather than a few large ones.

So how would that work in practice?

Let’s break down the economics:

  • eCash currently pays 3.125 million XEC per block in subsidy.
  • Assume the average transaction is 500 bytes, and the network charges 1 sat/byte (or 0.01 XEC per byte).
  • That’s 5 XEC in fees per transaction.
  • To replace the 3.125M subsidy purely through fees, you’d need 625,000 transactions per block.

Since eCash produces blocks every 10 minutes (like BTC), you’d need to fit ~625,000 transactions into a single block. That works out to ~312.5 MB per block (625,000 tx × 500 bytes).

That’s ~45 GB of data per day, or ~16.4 TB per year. Not trivial, but not outrageous in a world of cheap storage and fiber internet. What would be outrageous is doing all that for nothing. So let’s ask: at what price of XEC does it become worth it?

If 1 XEC = $0.10, which would give XEC the same market cap that BTC currently has, then 3.125M XEC = $312,500 per block. That’s more than enough to fund miner incentives, bandwidth, storage, and even dev and staking payouts.

Now, What If eCash Scales Globally?

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