Didn't we already do this?Hey, I know this is probably was considered before,
Only since
2011. And even then, people could tell it was a terrible idea.
I know I probably missing some significant downsides but I can't see something that can't be compensated.
Moral issues of theft notwithstanding, depending on who you ask, anywhere between two and four million coins are lost forever, so how would you divide up these stolen funds so they don't just all appear in the first block mined after the idea is implemented and make one random group of miners beyond obscenely wealthy? If you're not simply dumping them all into the economy as one big lump (and causally annihilating confidence in the market), how are you determining what proportion of the stolen funds goes into each coinbase reward?
Even if you could come up with something that sounded reasonable, it's still altcoin territory. No matter how many flaws you think you've overcome, this will never be implemented in Bitcoin. If it was meant to work that way, it should have been implemented on Day 1. Doing it this far into a blockchain's lifecycle is just moving the goalposts.