Fractal Bitcoin is a Bitcoin Layer 2 solution developed through a collaboration between the Unisats team, BSF, Uniworlds, and Asset Bridge. Fractal Bitcoin enhances transaction processing capacity and speed by recursively creating infinite scaling layers on top of the Bitcoin main chain using the BTC core code, while maintaining full compatibility with the existing Bitcoin ecosystem.
On September 9, 2024, the Fractal Bitcoin mainnet officially went live. Following the launch, a large number of mining machines connected to the Fractal Bitcoin network, and within just three days, the total mining hashrate reached 266.8 EH/s, ranking third among all POW networks.

Mining output and the price of FB tokens have become key topics of interest in the community, with participants carefully calculating costs, profits, and risks. This article will provide a comprehensive overview of Fractal Bitcoin’s mining rules, mining costs, and token economics to assess its potential returns and risks.
Token Allocation
Fractal Bitcoin’s native token is FB, with a total supply of 210 million. 80% is allocated to the community, and 20% to the team and contributors, with the specific distribution as follows:
PoW Mining (50%): Half of the total token supply is allocated to Proof-of-Work (PoW) mining.Ecosystem Treasury (15%): 15% of tokens are reserved for the ecosystem treasury, dedicated to funding initiatives that enhance the Fractal ecosystem and provide resources for ongoing core improvements.Presale (5%): 5% of tokens are allocated to presale for early investors and network participants. These funds are crucial for covering initial development and operational costs, as well as for conducting security audits to ensure network robustness. All presale tokens are locked for six months and will be released linearly over 12 months.Advisors (5%): Another 5% is reserved for advisors who provide strategic guidance and support for the ongoing development of the Fractal network.Community Grants (10%): 10% of tokens are reserved for community grants, intended for building partnerships and liquidity programs.Core Contributors (15%): The remaining 15% of tokens are allocated to core contributors responsible for building and maintaining the Fractal core software.

Fractal Bitcoin previously announced a total airdrop of 1 million FB tokens to eligible UniSat and OKX Wallet users. Based on the token distribution, the initial circulating supply of Fractal is capped at 8.35 million tokens.
Mining Rules
Fractal employs a unique mining mechanism called “Cadence Mining,” where out of every three blocks mined, two are mined permissionlessly, and one block is merged-mined. Traditional miners can participate in merged mining, which accounts for one-third of the mining share, while permissionless mining takes the remaining two-thirds. Fractal does not implement a whitelist, allowing any device with hashrate to participate.
Assuming an average block time of 30 seconds, with 25 FB tokens rewarded per block, approximately 72,000 FB tokens can be mined daily.
Mining Costs
Due to the uniqueness of the mining mechanism, the costs are divided into two parts. For miners involved in merged mining, the cost is almost negligible. For those participating in permissionless mining, the costs are as follows:
With an average block time of 30 seconds and a reward of 25 FB per block, daily output is around 72,000 FB tokens. For 1 PH/s, a miner could expect to mine approximately 3.43 FB per day, or around 102.8 FB per month. Based on the current market price of leasing 1 PH/s (1 EH/s = 1,000 PH/s) at $3,000 per month, the FB price would need to exceed $29 for miners to break even.
However, given actual circumstances, including slower-than-expected block times and varying local electricity costs, mining costs may differ, meaning the above estimates should only be taken as a rough reference.
Based on an initial circulating supply of 8.35 million and a monthly output of 2.16 million tokens, FB’s monthly inflation rate could reach an exaggerated 25.87%. This inflation estimate may be understated due to potential overestimation of the initial circulating supply and underestimation of the monthly output. Additionally, the complexity of calculating costs, especially due to mining machine rental prices and the unique mining model, could impact confidence in secondary market purchases.

#fractal #BTCL2 #proof-of-work #btcecosystem

The Impossible Triangle of Airdrops
The "Impossible Triangle" has always been present in the blockchain industry. In the scalability race, there is the impossible triangle of decentralization, security, and scalability. From a financial perspective, the value of cryptocurrencies being relatively stable, widely circulated, and decentralized is an impossible triangle. The rapid growth of crypto projects, decentralization, long-term value, and fast growth form another impossible triangle.
In the crypto industry, airdrops are seen as an attractive investment method. Participants can gain high returns with minimal costs. However, airdrops also have an impossible triangle: high returns, low cost, and certainty.
High Returns: The core attraction of airdrops lies in their potential high returns. Participants have the chance to receive tokens from emerging projects that may significantly appreciate in value after listing. Especially when market sentiment is high, airdropped tokens can quickly double or more in value.Low Cost: Compared to other investment methods, early airdrops require little to no financial investment or low wear and tear on funds. Participants only need to meet certain conditions, such as holding a specified number of tokens, following social media accounts, or completing simple tasks. However, since the "point system" became popular, user costs have gradually increased.Certainty: While high returns and low cost coexist, meeting airdrop conditions remains a challenge. Additionally, market uncertainty and project risks make it impossible to guarantee the certainty of airdrop returns.

The Dilemma of Airdrops
Since Blur, many teams have adopted this new incentive primitive and leveraged its advantages. By 2024, various point system ecosystems had developed quite prosperously. Point systems have become a crucial tool for projects to gain user loyalty and drive product growth.
However, for users, point economics can be quite complex, and the foreseeable yield rate is relatively low.
Apart from the criticism of the "point-based" airdrop distribution system, overly pursued popular projects often fail to deliver satisfactory returns. The reason lies in airdrop participants typically expecting to sell the acquired tokens at high FDV, while secondary investors are often unwilling to provide liquidity.

However, users can still find asymmetric opportunities in the airdrop sector through research. For example, early Atops node setup yielded substantial tokens, the first-generation Solana phones received multiple project airdrops, and recent projects like XAI, Notcoin, and Degen Chain performed well not only in airdrops but also in secondary markets.
Potential Airdrop Projects
Airdrops have an impossible triangle. It is challenging to achieve high returns at low costs through point-based projects. Therefore, it is essential to look for early-stage projects without specific airdrop details, interacting reasonably to secure as many airdrop quotas as possible. Here are some projects that might offer airdrop opportunities:
Monad
Fundraised $244M, led by Dragonfly and Paradigm.

Monad is a Layer 1 blockchain platform promoting the "parallel EVM" concept, accelerating Ethereum transactions with pipelined execution, supporting up to 10,000 transactions per second. Monad combines blockchain and high-performance computing to support complex applications.
The recommendation for Monad stems from the founding team's experience at Jump Trading. Monad has Jump's high-frequency quantitative technology support and has received investment from top blockchain capital, Paradigm. As a "favorite" of Jump, Wormhole airdropped the "nads" character in April, with individual airdrops reaching up to $10,500.
Additionally, Monad's cooperative dynamics and attention information reveal close associations with multiple Solana ecosystem projects like Backpack, Pyth Network, and Phantom. To get Monad airdrops, users can join the official Discord to gain roles, participate in upcoming testnets, and use products with high association.
Berachain
Fundraised $142M, led by Polychain and Framework Ventures.

Berachain is a high-performance L1 blockchain built on Cosmos SDK, using the CometBFT consensus engine, and is EVM-compatible. Built on Cosmos SDK, Berachain seamlessly integrates with the Cosmos ecosystem, achieving horizontal expansion through the IBC module. Additionally, Berachain developed the Polaris Ethereum module, providing EVM compatibility for better aggregation of existing EVM ecosystem developers and users.
Berachain's community has distinctive Ponzi, Meme, and NFT culture traits. The V2 testnet is live, and users are encouraged to interact more with Dapps.
Movement
Fundraised $40M, invested by Polychain Capital and Binance Labs.

Movement is a modular framework for building and deploying Move-based infrastructure, applications, and blockchains in any distributed environment. The co-founders, Rushi Manche and Cooper Scanlon, aim to build the first L2 using Move on Ethereum and plan to launch their token, tentatively named MOVE. Movement is currently holding events on GALXE, offering points through quizzes, community joining, etc. The testnet and a hackathon called "Battle of Olympus" are open until September 17, 2024, for developers, event operators, content planners, and creators to participate.
Bitcoin Ecosystem
The Bitcoin ecosystem is a new sector, gaining attention since Ordinals became popular, with continuous innovations. It is highlighted in the airdrop section due to the fair token distribution and low airdrop competition.

Several well-known airdrops in the Bitcoin ecosystem, like Runestone, $DOGS, and $Pizza, share the following characteristics: low user threshold, broad coverage, and high airdrop value. Current BTC on-chain Gas fees are low, around 4~5 Sat/vB. Recommended wallets like Unisat, MagicEden, and Xverse have yet to issue tokens, all with airdrop expectations. Users can use these wallets to mint some 0-number runes UNCOMMON•GOODS and .btc .sats.unisat inscribed domain names.

#Airdropairdrop #btcecosystem #Monad #Berachain

In March 2023, developer Domo introduced the BRC-20 standard using the Ordinals protocol and Inscriptions, allowing users to issue and trade tokens on the Bitcoin network, similar to Ethereum's ERC-20 standard. The issuance of new assets created significant wealth opportunities, attracting the attention of many developers and venture capitalists to the Bitcoin ecosystem.With the rise of the Ordinals protocol and the BRC-20 standard, user-friendly asset management tools and trading markets became essential for participants. Unisat is a browser-based wallet focused on the Bitcoin blockchain, specifically on the Ordinals and BRC-20 standards. Leveraging its first-mover advantage, Unisat has captured a significant market share.

What is Fractal Bitcoin?
Fractal Bitcoin improves transaction processing capacity and speed by recursively creating infinite expansion layers on the BTC main chain using the BTC core code, while maintaining full compatibility with the existing Bitcoin ecosystem. Fractal creates multiple expansion layers on top of the BTC main chain, forming a tree-like recursive structure. This structure allows each layer to further expand in a "forking pattern," increasing the network's parallel processing capacity. Fractal possesses the following 6 characteristics:g capacity and speed by recursively creating infinite expansion layers on the BTC main chain using the BTC core code, while maintaining full compatibility with the existing Bitcoin ecosystem. Fractal creates multiple expansion layers on top of the BTC main chain, forming a tree-like recursive structure. This structure allows each layer to further expand in a "forking pattern," increasing the network's parallel processing capacity. Fractal possesses the following 6 characteristics:
Fast Transaction Speed: The block confirmation time on the Fractal network is approximately 30 seconds, and its transaction processing capacity is 20 times that of the BTC main chain.Native Compatibility: Fractal Bitcoin is developed based on the BTC core code, ensuring full compatibility with existing Bitcoin wallets, tools, and mining equipment.Dynamic Adjustment: The recursive system based on the BTC main chain can automatically adjust the number of expansion layers according to network congestion.Security and Traceability: All transactions conducted on the Fractal network can ultimately be traced back to the Bitcoin main chain.Cadence Mining: Every three blocks constitute a cycle, with two mined in a permissionless manner (anyone with suitable hardware can participate), and one mined through merged mining (targeted at BTC miners), balancing decentralization and security.Reapplication of OP_CAT: The "purified" OP_CAT is applied to enhance BTC's scripting capabilities.

Commentary on Fractal
Bob Bodily, CEO of Bioniq, shared his views on Fractal, summarized as follows:
Fractal Bitcoin is a Bitcoin sidechain: This is because it has its own miners and nodes, its own token, its own proof of work, and is completely separate from BTC. Comparing it to other BTC sidechains, Fractal Bitcoin combines the advantages of multiple BTC sidechains.Limited Smart Contracts: Fractal Bitcoin does not add new opcodes to enhance smart contract functionality, nor does it add a virtual machine. Its method is to re-enable OP_CAT to add smart contract-like features.Lack of Innovation in Bitcoin Bridges: The official documentation mentions MPC-based bridging, which essentially relies on the same trust assumptions as multi-signature.
In response, Unisat Founder and CEO Lorenzo commented that Fractal is making rapid progress in implementing smart contracts and cross-chain bridges. In terms of smart contracts, Fractal introduced OP_CAT during the testnet reset and plans to activate it on the mainnet starting September 1. This is the first step in enhancing Bitcoin's scripting capabilities with the support of the Unisat and sCrypt teams. Developers can explore potential programming capabilities with OP_CAT enabled on GitHub. Regarding cross-chain bridges, 3-5 methods for transferring assets from the Bitcoin mainnet to Fractal are under development, including both traditional and innovative approaches.
Sats and Pizza Surge
There has been debate within the community regarding the technology of Fractal Bitcoin. However, the secondary market seems optimistic about Fractal Bitcoin.
As the Fractal Bitcoin testnet progresses and the announcement of the expected mainnet activation on September 1, related BRC-20 tokens ORDI and PIZZA have seen significant increases. Additionally, SATS has surpassed the previous BRC-20 leader ORDI in market capitalization.

Note:
SATS will be used as the transaction fee on Fractal Bitcoin.
PIZZA is a MEME token airdropped for Unisat users.

#btcecosystem #sidechain #BinanceLabsInvestment #BRC20DEX