GOAT Network, the Bitcoin Layer 2 scaling project, announced Wednesday that users will soon be able to stake Dogecoin (DOGE) to support the security of its network, offering crypto rewards in return.
Users will be able to earn rewards in the form of Bitcoin, which will be used to pay transaction fees on the GOAT Network, and tokens that the GOAT Network plans to use, said the project's core contributor and Metis co-founder. said Kevin Liu. decryption In an interview.
“We need to stake some tokens to secure the network,” Liu said. “Bitcoin is a natural choice, but our model supports multiple assets.”
The project aims to address Bitcoin's scalability and yield challenges, but faces questions about its technical feasibility and promise of sustainable returns.
GOAT Network's decision to adopt Dogecoin is in line with the company's overarching mission for the preeminent asset in crypto: to provide sustainable yield by leveraging Bitcoin to provide network security. It was part of a months-long process motivated by an overarching mission, Liu said.
Liu claimed that GOAT Network will allow users to start locking up Dogecoin in the so-called pre-mining phase in early December.
A GOAT Network spokesperson later clarified: decryption The project announced that it will begin accepting assets from delegators on December 2nd via Bitcoin and Binance's BNB Chain. This comes with a “30% mining reward rate,” the spokesperson added.
While there are countless projects experimenting with decentralized finance (DeFi) solutions in the Bitcoin space, GOAT Network claims that its so-called decentralized sequencer model is unique.
In other words, the project claims that the process of organizing, batching, and executing transactions on the GOAT network is not subject to the control of any centralized organization.
“Rather than having the chain's management infrastructure hoard all operational management and revenue, this model allows for management to be shared among multiple individuals and entities,” the statement said.
As proof-of-work networks, Bitcoin and Dogecoin do not use their respective assets to secure the network or verify transactions. Instead, each network relies on power-hungry machines constantly processing complex calculations to keep it running.
Liu said the inclusion of Dogecoin as an asset that could be delegated to the yet-to-be-launched network was motivated by Dogecoin's decentralized nature and $59 billion valuation.
At the same time, Liu acknowledged that technology company CEO Elon Musk is driving Dogecoin's resurgence in popularity through initiatives such as: social media and Proposed government agency.
When GOAT Network was announced this spring, the project claimed to have 5,000 Bitcoins in commitments from institutions operating GOAT Network nodes. press release. The release also claimed that GOAT Network will launch with a “leading” decentralized exchange, among other decentralized applications in lending and staking.
Prior to joining GOAT Network, Liu co-founded Ethereum layer 2 scaling solution Metis. According to DefilamaMetis has approximately $60 million worth of assets locked in smart contracts.
It will take time to see how GOAT Network's debut this year turns out, but the project is keen to use Dogecoin holders as a source of tokens to secure the network. At the same time, it promises revenues and tokens that have yet to be earned.
Edited by Sebastian Sinclair
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