Lately we have been hearing about this "new" Bitcoin: it has nothing to do with the actual coin.
It is simply an ERC-20 token, and as such it follows all the trappings of the Ethereum blockchain.
It's basically tokens created from a smartcontract, the nice thing is that the team has perfectly traced the BTC supply and all the features of the actual coin.
Below is the road map of the token:
Basically, the project is based on the history of bitcoin: let's jump back to 2011, April 2011; when BTC was worth $1.
Well the cost of the token corresponds exactly to $1.
For the creation of the other "coins" of course, we use the possibilities offered by Ethereum's blockchain, staking.
In order to initiate staking, the following tokenomics was used.
Starting with the supply of 21,000,000 BTC20, 14,950,000 were locked in staking, 6,050,000 were made available for the community to put in staking so that more could be created until the total supply of 21,000,000 in 120 years was reached.
As I wrote just above, the team perfectly executed a mirroring of the pioneering crypto.
In fact, the rewards on staking are directly linked to the operation of the BTC blockchain.
To make tokenomics self-sustaining, the rewards are recalculated according to the staking pool.
The recalculation of rewards on staking is called "dynamic yeld", below is an excerpt of how it works:
If we scroll down to the last item we see some decidedly eye-popping numbers an APY of 520%....
We will see in the next appointment where I go to analyze the Whitepaper how such returns are realized.
In perfect BTC fashion, halving the rewards every four years has also been traced.
Rewards at the moment are 50 tokens, in 2025 they will become 25 and so on until 2033 that rewards will be 6.25 tokens per block.
As we can see, the whole operation of this project is related to token staking; without this feature the whole thing could not work.
To recap, this mirroring is completely based on the Bitcoin blockchain; in fact, the 50 reward tokens to be allocated according to the staking pool are minted when the BTC block is validated.
From there everything originates and then is processed by the BTC20 smartcontract.
In this installment we have seen in general the highlights of this token mirroring, in the next installment we will take a more technical look at the whitepaper to get more into the project and understand in depth how it works.
