A significant impediment to participation in Bitcoin mining is the limited number of exit options. Bitcoin mining is a profitable venture with limited liquidity. While traders are often interested in gaining Bitcoin mining exposure, for it can be viewed as a long option, high transaction costs dissuade them. Although cloud mining lowers the barrier of entry to mining, its lack of standardization and strong product coupling make markets hard to form around mining contracts.
The Bitcoin Standard Hashrate Token (“BTCST”) solves this problem by bringing exchange-grade liquidity to Bitcoin mining. Each BTCST is collateralized by 0.1 terahash per second (“TH/s”) of Bitcoin mining power. By staking BTCSTs, holders of the tokens will receive daily Bitcoin distributions corresponding to the mining power staked.
Bitcoin Standard Hashrate Token (“BTCST”) is collateralized by standardized Bitcoin mining power. Standardizing and tokenizing mining power into BTCST and listing the token for exchange trading can bring exchange-grade liquidity to the mining power market while meeting traders’ needs for mining exposure.
Since the market price of BTCST is determinable as the discounted cashflow of the underlying mining power, BTCST in secondary trading will perform as a leveraged Bitcoin token free from liquidation risk. BTCST will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin.
The τ protocol
The τ protocol describes how PoW cryptocurrencies can be reliably synthesized for further use or composition by DeFi instruments. τ protocol requires the consumption of hash rate during synthesis. In other words, the τ protocol does not synthesize PoW cryptocurrencies directly. It synthesizes the mining process, which secures the value of PoW assets in general.
The τ protocol utilizes hash rate tokens to synthesize the mining process. Hashrate tokens are cryptocurrencies collateralized by standardized and tokenized PoW
hash rates. Staking hash rate tokens would entitle the staking holder to a share of the
mining rewards earned by the underlying PoW hash rate. For example, synthesizing τBitcoin would require synthetic mining with hash rate tokens collateralized by a standardized Bitcoin hash rate. The combination of staking with the relevant PoW hash rate and surrendering PoW rewards represent hash rate consumption, imparting inherent
value into the resultant synthetics.
Each BTCST is a token collateralized by a standardized unit of actual Bitcoin mining power. Holding the token is legally and functionally equivalent to owning the underlying mining power; staking the token on-chain will entitle the staking holder to receive mining rewards in Bitcoin, and listing BTCST on major exchanges will bring meaningful liquidity to tokenized Bitcoin mining power.
Who are the founders of Bitcoin Standard Hashrate Token (BTCST)?
Alex Zhao is the CEO of Standard Hashrate, the creator of BTCST, which brings exchange-grade liquidity to Bitcoin mining. The team consists of mining veterans with four years of experience constructing and managing mining sites in Yunnan, Sichuan, Xinjiang and Inner Mongolia provinces of China. Assets under the team’s management include those of some of the largest cloud mining providers in the world.
What is Bitcoin Standard Hashrate Token (BTCST) used for?
BTCST is an asset protocol that brings Bitcoin hash rate assets to DeFi. The team has successfully brought bitcoin to DeFi with the launch of BTCST on Binance Launchpool and has exceeded USD 300 million and nearly USD 600 million in the capital.
It is a strong foundation for other DeFi trading, lending, and borrowing protocols to build on.
BTCST brings exchange‐grade liquidity to hash rate assets so that market participants can quickly enter and exit mining exposure of any size and at any time.
BTCST is governed transparently as a DAO. Token holders, including our miner members and the broader token community, will collectively decide on material issues of the project, with all proposals, votes, and outcomes preserved and disclosed on the chain.
Holders stake BTCSTs in the dApp to farm bitcoin. Specifically, every BTCST staked continuously for a day (Singapore time) will increase the amount of Bitcoin that a staking holder is entitled to withdraw from the dApp by an amount equal to the minable by 0.1 terahash of mining power on that specific day.
How is Bitcoin Standard Hashrate Token (BTCST) unique?
The largest Bitcoin miners in the world back it. Standard Hashrate Group is backed by industrial‐scale Bitcoin miners, who collectively represent about 12% of Bitcoin’s global hash rate as of February 2021. The founding partners of BTCST include institutional miners with more than 2,000 PH/s of mining power under management.
These founding partners and the partnering mining pool form a governance board that collectively decides on material issues of the project, which include new issuances, cost level adjustments, surplus profit distribution, and future features. The governance board has three seats upon launch, two occupied by the project team and one by the partnering mining pool.
BTCST creates an efficient market among Bitcoin miners and those interested in becoming one. By trading BTCST, market participants can freely enter and exit Bitcoin mining exposure in any size, at any time, and with low costs. Even miners without mining power tokenized by BTCST can use the token to capture profits or hedge against mining machine price fluctuation risks.
BTCST also connects miners with traders in general. Because the market price of BTCST will perform as a leveraged Bitcoin token, BTCST will meet a variety of trading needs of proprietary and algorithmic traders in previously unattainable ways.
How many Bitcoin Standard Hashrate Token (BTCST) coins are in circulation?
Bitcoin Standard Hashrate Token has a circulating supply of 12,201,402 BTCST coins and a maximum supply of 15,000,000 BTCST coins.
How is the Bitcoin Standard Hashrate Token Network Secured?
The Binance Pool is the auditor for BTCST and guarantees security and transparency. BTCST is also governed by a decentralized autonomous organization (DAO) comprised of token holders, miners, and the broader token community.
How do I buy Bitcoin Standard Hashrate Token (BTCST)?
The BTCST token can be used for a wide range of purposes, like staking and governance.
BTCST tokens can be easily purchased by following the following steps.
Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed, then buy BTCST through your trading account.
Which Cryptocurrency Wallet Supports Bitcoin Standard Hashrate Token (BTCST)?
The PTPWallet platform supports many cryptocurrencies, with BTCST soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.