Introducing BRC20-S: A revolutionary new opportunity for Bitcoin and BRC-20 staking
BRC-20 and Bitcoin staking are coming to OKX Web3 Earn
BRC-20 rapidly gained momentum within the Bitcoin community when it landed on March 8, 2023. A fungible token standard made specifically for the Bitcoin blockchain, BRC-20 allows users to deploy token contracts and mint and transfer tokens.
The new standard has captivated some crypto enthusiasts and stakeholders for the opportunities it provides, but it’s also raised skepticism for its use of block space and potential impact on gas fees.
If you fall in the ‘pro’ camp for BRC-20, you’ll want to read on. OKX is introducing the first token standard enabling Bitcoin and BRC-20 staking through OKX Web3 Earn, called BRC20-S.
In this article, we’ll explain the relationship between BRC-20 and BRC20-S (the 'S' stands for staking, of course) explore BRC20-S and its advantages, and introduce BRC-20 and Bitcoin staking on OKX Web3 Earn.
BRC-20 and BRC20-S explained
Previously, you could only mint or trade BRC-20 tokens on the Bitcoin blockchain using ordinal inscriptions. BRC20-S goes one step further to allow you to earn with BRC-20 tokens and Bitcoin, advancing the BRC-20 ecosystem significantly.
The motivation behind introducing BRC20-S and its staking functionalities is to provide BRC-20 token holders with additional opportunities to engage with their assets and earn rewards. Meanwhile, projects can distribute their tokens to Bitcoin holders or BRC-20 token holders to build a community and let users stake their tokens to earn without them having to sell their tokens.
The BRC20-S protocol is also open-source and will be available for all developers to build upon — opening the door to even greater opportunities from BRC-20.
What benefits will BRC20-S bring?
Empowered with the option to stake, users will have an incentive to hold onto their assets, which can potentially reduce selling pressure in the market and contribute to a more stable token ecosystem. Meanwhile, the staking mechanism allows active participation in the Bitcoin network, further unlocking the potential value of BRC-20 tokens.
Staking rewards
When BRC20-S goes live, users can put their BRC-20 tokens to work and earn rewards without selling their assets or transferring them to another address, unlike in EVM cases. Each staking pool on OKX Web3 Earn offers different rewards, allowing users to choose the option that best suits their preferences.
Non-custodial staking
A key advantage to BRC-20 staking on OKX Web3 Earn is the ability to use your assets freely even after staking. In contrast to other EVM (Ethereum Virtual Machine) pools where staked assets are locked, BRC-20 staking enables users to still use their assets without needing to unstake them. This flexibility allows seamless transactions and the ability to react quickly to market changes. With the introduction of BRC-20 staking on OKX Web3 Earn, users have an opportunity to earn rewards by holding their Bitcoin or BRC-20 tokens without transferring assets elsewhere.
Earning BRC20-S on OKX
OKX Web3 Earn goes beyond staking by enabling users to earn and list tokens in their OKX Wallet. The platform supports token minting, and once research and development is complete, we’re planning to introduce a marketplace for selling BRC20-S tokens. OKX's NFT marketplace will support BRC20-S alongside BRC-20 and ordinals support. This all-in-one application provides a comprehensive solution for BRC-20 token holders, empowering them to potentially maximize their rewards while enjoying the benefits of token ownership.
The technical foundation in brief
For a deeper understanding of BRC-20 staking with OKX Web3 Earn, we’ve produced a technical document for developers and projects: OKX Build.
Read on for an overview of the interaction flow.
User scenarios
In the dynamic ecosystem of BRC20-S tokens and staking, the interaction flow between the project team, users, and the server is important for seamless engagement.
Project team:
- Issues their own BRC20-S tokens by creating a staking pool, gaining seed users
Users:
- Stake BTC to earn other newly issued BRC20-S tokens
- Stake BRC-20 tokens to earn other newly issued BRC20-S tokens
Interaction flow
Project party: Starts the deployment process by defining the parameters of the staking pool, which include specifying the staking token, earn token, mining rate, total mining rewards, and granting permission for coin holders to participate in multi-mining. Once this setup is complete, the user's deposit activity is acknowledged and recorded per the BRC-20 standard.
User: Engages in various staking operations such as depositing, minting (claiming), and withdrawing. Users can claim their mining rewards at any time by minting earn tokens.
Server: Allows for a comprehensive interpretation of the BRC-20 and BRC20-S proposals, offering an open-source interface for calculating rewards. Staking rewards for all users are consistently computed using both backend and open-source tools, making sure of accuracy and uniformity across all calculations.
The final word
The flexibility to use assets freely, low costs, and the ability to earn and list tokens in a Web3 wallet make BRC-20 staking a compelling option for individuals looking to make the most of their digital assets.
DISCLAIMER:
THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL OR HOLD DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.
