OKX Introduces the BRC-30 Standard to Enable Staking on Bitcoin
The BRC-30 token standard will allow users to stake BTC or BRC-20 tokens and earn passive income.
Published on June 02, 2023 08:32 AM EST
Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our
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Recently cryptocurrency exchange OKX
introduced the BRC-30 token standard proposal to bring staking-related features, such as staking pools and rewards, to the Bitcoin blockchain. The proposal will allow Bitcoin or BRC-20 token holders to earn passive income by staking their tokens. OKX Wallet will support the new standard soon.
What is BRC-30 Bitcoin Standard?
BRC-30 is an enhanced version of the BRC-20 proposal intended to expand the Bitcoin ecosystem’s capabilities. It upholds the fundamental principles of the BRC-20 standard while offering staking operations such as depositing, minting, and withdrawing.
By adopting BRC-30, users can easily stake their BRC-20 tokens or Bitcoin and receive BRC-30 tokens in return. “BRC-30 tokens are an extension of the functionality of BRC-20 tokens, with an added description of the staking protocol,” OKX detailed.
At the core of this system is a staking pool and “server” that manages the accounting for BRC-20 and BRC-30, “The staking profits for any user are consistently computed using both the backend and open-source tools, ensuring uniformity across all calculations,” the exchange said.
There is also a “project party,” which establishes the staking pool’s parameters, including mining rate and total rewards. At the same time, users complete the interaction process by depositing, minting, and transferring funds to their self-custodial wallets.
OKX revealed that the “server” component would be accessible as an open-source interface. It encouraged developers and project parties to collaborate by contacting them via the email link at the proposal’s bottom.
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BRC-20 Holders Can Now Earn Passive Income by Staking Their Tokens
Courtesy of the BRC-30 standard, users can now stake their BRC-20 tokens or BTC and receive BRC-30 tokens in return. OKX Wallet will be the first to incorporate this new standard, offering users rewards for locking up their BTC or BRC-20 tokens.
“With the OKX Wallet soon to incorporate BRC-30 support, users will be able to access Bitcoin staking and earn opportunities across multiple-chains,” OKX Chief Innovation Officer Jason Lau said in a comment, adding:
“With the Bitcoin ecosystem seeing an explosion of new development, we’re proud to work with developers and projects across the community to contribute to the growth of the wider ecosystem.”
OKX said it had introduced the BRC-30 standard to enhance user experience, create additional functionalities for BRC-20 holders, and ensure the ecosystem’s growth. It claimed that the staking mechanism can foster “greater participation, and a stronger connection between token holders and the underlying blockchain network.”
BRC-20 and Ordinals Spark Controversy as Their Popularity Increases
Bitcoin Ordinals and BRC-20 tokens have seen huge success recently, but that has not come without controversy. In early May, these tokens led to
record high fees and congestion on the Bitcoin blockchain — so much so that around 500,000 unconfirmed Bitcoin transactions in the mempool were waiting to be added to a block at one point.
As reported, this prompted some Bitcoin developers to
consider taking action against Bitcoin Ordinals and BRC-20 tokens. In a Bitcoin developer forum, Bitcoin core developer Ali Sherief suggested introducing a runtime option to delete all non-standard Taproot transactions, including Ordinals and BRC-20 tokens.
“We indirectly allowed this to happen, which previously wasn’t possible before. So we also have a responsibility to do something to ensure that this kind of congestion can never happen again using Taproot.”
It is worth noting that Bitcoin purists have been
critical of the Ordinals project since its debut, arguing that it could price out the actual financial activity and thus damage Bitcoin’s image as a reliable P2P payments network. On the other hand, supporters of the protocol have claimed that it can attract more people and extend the Bitcoin network’s use cases.
Nevertheless, more than 10.4 million Ordinals have been inscribed to the Bitcoin network since the protocol launch earlier this year, per a
Dune dashboard. Likewise, the market cap of all BRC-20 tokens currently stands at $311 million, according to data by CoinGekco.
But then again, as EliteTrader's most outspoken "Bitcoin Bagholder," you seem to take any negative news about Bitcoin as a personal attack on you.
