Bitcoin is digital gold, a powerful store of value, and a source of hope for countless people around the world watching fiat currencies slide into oblivion.
Moreover, compare Bitcoin's price performance to the S&P 500, gold, or any other major asset or asset class over the past decade, and Bitcoin wins by an unfathomably huge margin.
So when it comes to the world's most powerful and most valuable asset, we have two questions:
Today, we are pleased to release the GOAT Network Economic Beigepaper, which proposes solutions to both of those elemental questions.
Per Satoshi Nakamoto's vision, Bitcoin is a finite asset. Until now, acquiring more of it has meant you either need to be a Bitcoin miner to make more, or you need to pay the going market price to buy more.
GOAT Network aims to solve this challenge with a decentralized, BTC-based financial market, fueled by tokenized revenue from a decentralized sequencer, delivering sustainable BTC yield.
Every Layer 2 blockchain network, on the Ethereum or Bitcoin networks, relies on a sequencer to process and batch transactions, making transactions faster and cheaper than they are on Layer 1. Every Bitcoin L2 to date has relied on a single sequencer, with the parent foundation controlling all network operations and transaction batching, and thus earning all the revenue that comes with those actions.
GOAT Network will very soon launch a decentralized sequencer network, one that shares network ownership with outside parties. Those parties will range from infrastructure companies to mining communities to DeFi groups to eventually, an open application process enabling anyone with the requisite tech setup to run a GOAT Network sequencer node.
Running a GOAT Network sequencer node requires locking BTC on the Layer 1 Bitcoin network. Users can then bridge their BTC into our Layer 2 network.
Since the token required to pay for transactions on GOAT Network is a 1-to-1 wrapped version of BTC, the revenue these sequencer node operators take in will be in BTC.
That shared revenue can then be converted by third parties into yBTC, which enables that revenue to become tradable, opening up new avenues for yield.
That yBTC can then be decomposed into new, yield-bearing tokens, creating an innovative BTC yield market which generates a whole new set of opportunities for users of all stripes. Mint/redeem fees and other yield-boosting mechanisms open still more opportunities for yield.
With GOAT Network's decentralized sequencer nodes continuously processing transactions, the result is a flywheel of sustainable yield, fueled by BTC, paid out in BTC, and sustained by BTC,
In short:
Users can grow their BTC stacks without becoming miners or needing to buy more BTC
AND
GOAT Network helps take BTC from a passive asset which mostly relies on price appreciation to accrue more value to an active asset which kickstarts an entire BTC-based financial market with tons of BTCFi dApps; an open, competitive market with as many use cases as great BTCFi builders can possibly imagine.
The more we succeed in making BTC an active asset...
...the more BTC's adoption grows beyond simple buy-and-hold strategies
...the more BTC's value appreciates, the more it becomes an active asset.
A virtuous BTC circle, built by GOAT Network.
Let's grow the future of Bitcoin, together.
