Stake for Bitcoin

Instead of wrapping BTC (which has been demonstrated in other ecosystems to have risk), Stake for Bitcoin will instead replace it. Essentially migrating it to Cardano.

Using the ISPO model (initially just to minimize early adoption risk), ADA from staking rewards will be used to acquire BTC, which will be burned on the Bitcoin blockchain (providing a proof of burn transaction) prior to minting the same amount as a native asset on the Cardano blockchain. This will eventually be a decentralized process using a minting smart contract that references an oracle tracking BTC burn transactions on the Bitcoin network.

The project will have three phases:

Community Building - The value of cryptocurrencies rely on social consensus. By establishing a community of people interested in supporting the migration of BTC from Bitcoin to Cardano, it will ensure that the token will be considered equal in value prior to risking staking rewards. A temporary token (SATS) will be issued during this phase, to allow participants to trade their position prior to the BTC minting contract being available.

Implementation - The BTC minting contract will be implemented and tested. This will include the use of an oracle that checks for burn transactions on the Bitcoin network and the signing keys used to mint BTC on Cardano.

Decentralization - The Stake for Bitcoin process will be made available to anyone in the community.  This will ensure that nobody (including the Stake for Bitcoin team) can prevent the continued migration of BTC through the native token minting contract. Trust in stake pool operators offering Cardano BTC as staking rewards instead of ADA, will need to be established by the community instead of the Stake for Bitcoin team.

More information is available on our website.