ChainX will Resume BTC Inter-chain Deposit and Launch New BTC Lock-up Mining
Previously, ChainX announced that it had closed the BTC inter-chain deposit function to upgrade the trustee system. So far the testing of the new system has begun, and the trustee nodes will be re-elected in about two weeks with assets handed over to the newly elected which will consist of 6 nodes jointly managing deposited BTC by inter-chain users. After the re-election, it still takes about two weeks to run the trial, after which BTC inter-chain deposit and deposits mining will be launched.
At present, ChainX’s inter-chain functions include: BTC inter-chain deposit which issues X-BTC and DOT inter-chain mapping which generates SDOT.
The value of X-BTC is converted into virtual voting power according to 0.1 times of the PCX price; the SDOT is also converted into virtual voting by a fixed rate of 0.1, and there is the real voting power of the PCX in node elections. The three types of voting proportionally shares the fresh PCX every day. At present, the voting power of 1290 X-BTC in the chain accounts for 14% of the total, 1.33 million SDOT accounting for 21%, and 390,000 PCX, 65%. The monthly return rate of the three assets is about 30% for now.
The goal of ChainX is to become an inter-chain asset gateway that provides relay services for assets that need to be transferred across chains.
ChainX has become the largest BTC side chain and layer 2 network in fact, which firstly implements the inter-chain deposit by relaying all BTC block headers via the light client protocol, generating the longest chain according to the PoW algorithm, and it enables withdrawals through the public multi-signed trustee address. ChainX deploys the open and transparent mode of full reserve to issue X-BTC at the ratio of 1:1, enabling BTC a fast transfer capability(within 2s) and decentralized trading capability within the ChainX network, and X-BTC of the highest credit will be to delivered to Polkadot.
To further improve its publicity in the BTC community, ChainX’s BTC transfer bridge will expand user coverage.
Users no longer have to deposit their BTC into the multi-signed trustee address, instead only need to generate a separate BTC address with a private key (only supporting addresses starting with 1 and 3), and transfer their BTC to this independent address to participate in the lock-up mining for any period of time with their own ChainX address attached to OP_RETURN, then the ChainX transfer bridge will relay such transactions and issue Lock-up BTC (L-BTC) to users at 1:1. Like X-BTC, L-BTC participates in inter-chain mining at the same ratio of 0.1 times. L-BTC can only be held and is not transferrable. Once locked-up BTC is spent, the corresponding L-BTC will immediately be destroyed and the lock-up mining will stop.
ChainX will provide BTC users with these two options:
1. through inter-chain deposit to obtain X-BTC to participate in deposits mining, obtaining the fast transfer and DEX functionality in the meanwhile.
2. through inter-chain lock-up to obtain L-BTC to participate in lock-up mining.
As a result, ChainX will definitely further expand the user base and gain continuous attention from all BTC users. By then, the proportion of inter-chain transactions related to ChainX in the Bitcoin will increase significantly. The goal of ChainX is to obtain 10% of the total trading volume of the Bitcoin chain.
In addition, according to the community discussion, in order to prevent large BTC influx by individuals or exchanges, the amount of one transaction initiated by an address participated in L-BTC locked-positions mining is limited between 0.1–10 BTC, and it should only be started by a general user( at most two OUTPUT+ OP_RETURN), in order to eliminate daily trading by a mining pool or exchange. At the same time, ChainX is still in an early stage. In order to avoid significant amount of inter-chain assets flooding in and overwhelming the system, the upper limit of the mining power of all inter-chain assets is set at 50% to ensure the mining power of PCX voting exceeding 50%, which means that at least half of PCX will be issued to PCX holders every day. ChainX plans to launch Polkadot on-chain governance in the future. Then PCX holders can adjust the proportion of asset mining power through the referendum. Prior to this, if necessary, this proportion could be adjusted by the the council based on community discussions.
Meanwhile, we hope more BTC wallets can take customized OP_RETURN, one-click ChainX deposit or lock-up functions onboard to tap into the inter-chain potentials of BTC. These wallets can also obtain 10% of the user’s lock-up mining revenue as a channel. At present, BitX wallet, Trezor wallet, MathWallet, BitPortal mobile wallet, and Wookong hardware wallet have all supported OP_RETURN functionality.
The BTC lock-up mining will be launched after the election of new trustee nodes and the trial run. ChainX will further expand its influence in the inter-chain asset field, and is fully committed to opening the door to an inter-chain world for a large number of existing BTC users, and is working to preheat the Polkadot ecosystem.
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