Tomorrow (April 2, 2021) at approximately 10:00pm (SGT, UTC+8), BTCST’s implementation of STP 6: Archimedes Proposal will come online. BTCST holders will become the recipients of τBitcoin airdrops and will be eligible to mine τBitcoin by staking BTCSTs.
This post, answering the most frequently asked questions about τBitcoin, is the first of 3 guides that we are publishing to help our community members make the most out of the τBitcoin Initial Liquidity Event and the launch of dApp v2.
- Guide 1: FAQs on BTCST dApp v2
- Guide 2: Claiming Airdrops from BTCST dApp v2
- Guide 3: Mining τBitcoin with BTCST dApp v2
1. What is τBitcoin?
τBitcoin is a synthetic Bitcoin that BTCST stakers can mine. The price of τBitcoin is pegged 1:1 to that of Bitcoin in accordance with the price pegging mechanism of the Tau Protocol.
Backed by institutional miners representing 12% of Bitcoin’s global hashrate, τBitcoin will be a synthetic Bitcoin uniquely suitable for DeFi use cases. For example, τBitcoin is already included as a planned reserved currency for the SORA Network XOR token bonding curve.
To see τBitcoin in your wallet, you should first add it as a Custom Token. We use MetaMask as an example. But the dApp supports TrustWallet, Binance Chain Wallet, and other mainstream wallets as well. Steps to add Custom Assets in other wallets should be substantially the same.
- Open MetaMask and click Assets to see the tokens in your wallet.
- Make sure your MetaMask is connnected to BSC Mainnet, NOT Ethereum.
- Scroll down to the bottom and click Add Token.
- Click Custom Token.
- Paste the contract address for τBitcoin 0x2cD1075682b0FCCaADd0Ca629e138E64015Ba11c into the Token Contract Address field.
- Once the address is in, the other fields should auto-fill.
- Confirm the token add.
2. How is τBitcoin generated both initially and subsequently?
There will be a total of 2,100 τBitcoin initially. These τBitcoin will be distributed over a course of 8 weeks starting tomorrow at approximately 10:00pm (SGT). At that point, the BTCST dApp will be upgraded to v2 to enable BTCST stakers to mine τBitcoin. Details of this Initial Liquidity Event are described here.
Important Reminder: Over 1,000 τBitcoin (about USD 58,000,000 in value) are distributed during the first week of the Initial Liquidity Event. So the mining rewards for the first week will be high in comparison to the remainder of the initial liquidity period.
Subsequently, the total circulation of τBitcoin will be elastically adjusted in accordance to the price pegging mechanism of the Tau Protocol.
3. Other than the BTCST dApp, is there any other way one can participate in the τBitcoin Initial Liquidity Event?
No. The BTCST dApp (following its v2 upgrade launching at approximately 10:00pm UTC+8 tomorrow) will be the only place where one may participate in the τBitcoin Initial Liquidity Event. You will not receive any τBitcoin airdrop if your BTCST remains in an exchange account. Nor will you be eligible to mine τBitcoin unless you stake BTCST in the BTCST dApp.
4. If I am already staking BTCST to mine BTC, do I have to do anything to transition to dApp v2 to be eligible for τBitcoin airdrops?
No. Your BTCST staking positions will be automatically upgraded to dApp v2. Your BTC rewards will not be affected in any way by the upgrade. Also, just as how our Snapshot governance site counts the BTCST amount you have staked towards the number of votes you have, our airdrop rules also consider the BTCST amount you staked in the dApp for airdrop calculations. Therefore you do not need to unstake to receive τBitcoin airdrops.
Note, however, if you are currently staking BTCST to mine BTCB, as mentioned above, you will still be staking BTCST to mine BTCB after the upgrade. If you intend to stake BTCST to mine τBitcoin instead, you must switch vault (e.g., unstake BTCST from the BTCST-BTCB vault and stake them into the BTCST-τBitcoin vault instead) by yourself.
5. What are the Lossless Mining Vaults in dApp v2?
- BTCST-BTCB Vault: This vault is the new place for the current dApp, where our community members may stake BTCST for daily distributions of BTCB. Rewards, Boost Factor, and all other parameters of this vault are identical to those of the current dApp.
- BTCST-BTCST Vault: This vault implements STP 1, where our community members may stake BTCST for daily distributions of BTCST, making this a BTCST Reinvestment Vault.
- BTCST-τBitcoin Vault: This vault is where our community members may stake BTCST to earn τBitcoin.
- BTCB-τBitcoin Vault: This vault is where our community members may stake BTCB to earn τBitcoin.
- τBitcoin-τBitcoin Vault: This vault is where our community members may stake τBitcoin to earn even more τBitcoin.
- All staking are lossless. There is no impermanent loss. For detailed allocations and the mining schedule, kindly see here.
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