At a high level:
We have had over 5,000 individual wallets mint new CityCoins to date by spending Stacks (STX) cryptocurrency
Today, the total size of our addressable audience of minters is restricted: Stacks is 1/1,000th the size of Bitcoin by market cap
If we could access BTC capital we would have access a potential user base several orders of magnitude larger (Bitcoiners) that the one we have today (Stackers)
On a technical level, we should explore options to unlock direct access to BTC capital
Can anyone participate where the Bitcoin UX is great?
Are DAO proposals funded with Bitcoin or must it be wrapped/swapped?
How do we bring together the Stacks and Bitcoin experience?
On to the post…
What if we could access a 1000x larger capital market by giving Bitcoin users access to smart contracts on Stacks?
Alt: Further unlocking the connections between Bitcoin and Stacks can open up access to 1000x larger capital markets.
Bitcoin scripts are limited but do have some functionality that we can use alongside the fact that Stacks smart contracts have access to Bitcoin state. It is possible projects like DLC.link and Magic Protocol may hold some answers.
Let’s walk through two minting models that could possibly accept Bitcoin: 1) a daily NFT auction mint and 2) PoX-L minting.
Imagine a simple nouns-style auction that happens daily, and participation requires a simple Bitcoin transaction.
In this model a newly minted governance NFT is the digital asset that is produced, rather than a fungible token. Auctions work better for NFTs than minting because of the uniqueness of each token and that selecting them can be a matter of taste, whereas a fungible token is the same as all others so there is no taste involved.
Interestingly, the auction model optimizes for the highest price that can be achieved on a more infrequent basis, leading to fewer participants punishing the project because of the arbitrage opportunity.
Also, the emissions schedule can be far more straightforward and memorable (like 1 NFT mint a day forever like Nouns has done) as 100% of proceeds could go toward the DAO.
Is it possible we could use a Discrete Log Contract like the one with dlc.link to accept Bitcoin bids and return losing ones?
Can we associate the winning Bitcoin bid with a Stacks wallet that receives that days NFT mint?
Does the BTC that gets forwarded into the treasury need to be wrapped like xBTC in order to be used in the DAO, or can it handle raw Bitcoin?
We can also evaluate what the current PoX-Lite minting model would look like if BTC bids were accepted.
In this model a newly minted governance fungible token is the digital asset that is produced. PoX-L minting works better than auctions because of the sameness of each fungible token and that selecting them is not a matter of taste but a matter of price.
What if CityCoin minting were available by directly sending a Bitcoin transaction instead of a Stacks transaction?
Would it be possible to mine CityCoins with both BTC and STX? How would the weights be determined?