Economy

The economy is visualised below.

Actors

  • Attestor - attestors that validate transactions

  • M - merchants

  • User - any users that lock up $BTC for $iBTC, mostly businesses not retail

  • iBTC - protocol

  • Ex - exchange

Flow

Attestors

  1. Stake $BIT to be able to participate with Attestors in operating and securing the network..

  2. Monitor Ethereum and Bitcoin chain to confirm users $BTC and $iBTC holdings.

  3. Receive $BIT rewards for attesting.

Merchants (as exchanges for retail users)

  1. Receive $BTC from users and issue $iBTC in return.

  2. Receive $iBTC from users and redistribute $BTC.

  3. Charge a spread for reselling $iBTC.

Users (same flow as for Merchants, but different POV)

  1. Users lock $BTC via the $iBTC bridge into the $BIT. Receive an equivalent amount of $iBTC.

  2. Return $iBTC to unlock the $BTC that was locked.

  3. Pay a spread.

User (delegated staker)

  1. Delegate $BIT to attestors to partake in reward distribution.

iBTC

  1. Charge Merchants a fee upon $iBTC being minted from merchants.

  2. Buy back $BIT tokens (50% of which get stored, and 50% redistributed to Attestors via point 3).

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