BTC Standard Hashrate Token (BTCST) is a blockchain-based asset protocol that aims to make Bitcoin usable in decentralized finance (DeFi). Each coin is collateralized by 0.1 terahash per second (Th/s) of BTC’s mining power standardized to an efficiency that equals 60 W/TH. Thus, it creates a bridge between Bitcoin hashrate assets and lets its holders earn passive income in bitcoins via staking. Moreover, it brings exchange-rate liquidity to hashrate assets helping market participants get involved in the mining processes hassle-free. The project was officially launched on Binance Smart Chain on December 13th, 2020.
The project founders aim to resolve one of the fundamental problems inherent to the market of BTC mining. While this venture has proved to be quite profitable over the past years, it still suffers limited liquidity. Miners are bound to hold their equipment for many years or rely on untrusty brokers to cash out their bitcoins. As a result, it’s difficult to make profits from the price fluctuations of mining machines. Cloud mining could be a good alternative as it lowers barriers of entry to mining. However, it’s not perfect either due to the lack of standardization and strong product coupling.
BTC Standard Hashrate Token aims to solve these problems by collateralizing the standardized Bitcoin mining power. This means that BCTST holders get a legal and functional equivalent of the power they possess. By staking this token, they can receive mining rewards in BTC while token listing on various exchanges gives them a possibility to cash out at any time. Thus, those who want to make profits from mining no longer have to purchase costly equipment or depend on brokers.
BTCST token details
BTCST represents a BEP-20 utility token running on the Binance Smart Chain. It can be issued only when BTC miners decide to standardize and tokenize Bitcoin hashrate through BTCST and contribute to the network accordingly. In return, they get a corresponding number of tokens. Participation in the process is free, which means that any miner can join and leave at any time.
The miners have to prove a few aspects to be eligible to obtain BTCST, though. First, they have to prove that they truly own the contributed power. Second, their mining equipment must be hosted in sites that have been properly assessed by the program team. Finally, the miners must contribute no fewer than 5 PH/s of their power.
As mentioned earlier, the project set the standardization target of BTCST to be equal to 60 W/TH upon the launch. However, if the effective efficiency provided by the participants deviates from this threshold, the project will look for more mining power. At this, it’s also worth mentioning that BTCST itself has launched its own acquisition program to buy the mining power on the open market for the raised funds. The project owns all the tokens issued under this program.
The token was released on Binance Launchpool with an initial supply of 1 million BTCST tokens. 96% of the initial circulating supply was assigned to the initial tokenizing miner while the remaining 4% was left in the launchpool. During the Launchcpool, users were able to stake BNB, BTC, and BUSD into separate pools and thus obtain BTCST via farming. The ongoing event started on January 8th, 2021. After this date, Binance listed the token in its innovation zone and opened corresponding trading pairs.
Since BTCST is running on BSC, it can be stored and staked on any BNB-compatible wallet such as Metamask TrustWallet, MathWallet, and many others. The token itself is available for purchase on Binance, Gate.io Poloniex, and a few other reputable centralized exchanges. As for decentralized ones, BTCST is supported only by PankcakeSwap at the time of writing.
On March 15th, 2021, BTCST experienced a 1:10 token redenomination following the STP-4 Proposal. As a result, the number of existing tokens possessed and staked by users increased tenfold while their hash power remained the same. The price of the token decreased accordingly. Also, on the same day, the TRON Foundation announced that BTCST had officially joined the TRON blockchain. The new partnership enabled token users to stake it on TRON thanks to the TRON Bridge.
The team standing behind the project together with the partnering mining pool, Binance Pool, has created a governance board. Its key function is to decide on various aspects of the platform such as new token issuances, surplus profit distribution, cost level adjustments, and other issues related to future development. Out of the three seats present on the governance board, two belong to the team and one to the pool.
BTCST successfully passed the audit by Certik with a score of 98 out of 100 having proved to be a highly secure solution. The report was published in January 2021. In addition, the project was audited by another leading smart contract auditing provider Armor Labs which hasn’t discovered any critical bugs in the smart contract either.
BTCST team and partners
According to the whote paper of the project, the team standing behind the project consists of China-based mining experts with extensive experience in constructing and managing mining equipment. The assets that the team relies on include some of those that belong to the largest cloud mining providers in the world. The project doesn’t disclose any real names, though. However, since it is backed by Binance, it’s relevant to assume that Changpeng Zhao took part in the project creation.
As for the project’s partners, BTCST has a number of institutional Bitcoin miners who support the platform having contributed more than 2,000 PH/s of the mining power. These founding partners are the ones who participate in the governance board and are eligible to make important decisions. The list includes such names as Token Pocket, Math Wallet, SafePal, Genesis Mining, and, of course, Binance.