High-performance Blockchain Plasma Designed for Stablecoins Draws Industry Attention

Stablecoins, as a key vehicle for on-chain payments, asset settlement, and financial services, have become increasingly important. However, existing Blockchain infrastructure still faces many shortcomings in handling stablecoin transactions, such as high transaction costs, performance bottlenecks, and centralized risks.

To address these challenges, an innovative solution has emerged: the construction of a high-performance Bitcoin sidechain specifically designed for stablecoins. This solution is not only compatible with the Ethereum Virtual Machine (EVM), but also offers zero-fee transactions, enhanced security, and scalability.

The concept quickly attracted the attention of the market. In February of this year, the project announced the completion of a $24 million financing round, with a strong lineup of investors including several well-known investment institutions and industry figures. In addition, a highly anticipated emerging platform has also chosen to make the project's initial coin offering its first ICO product.

The Necessity of Dedicated Blockchain for Stablecoins

According to a prediction by a research institution, the annual trading volume of stablecoins is expected to reach $15.6 trillion in 2024, surpassing the trading scale of the two major mainstream payment giants. As a key application in the cryptocurrency field, stablecoins play an indispensable role in multiple scenarios, attracting a large number of new projects and traditional enterprises to join this ecosystem.

However, the mainstream public chains that stablecoins rely on have significant flaws: Ethereum, although it was the first to introduce stablecoins, performs poorly in payment scenarios due to high Gas fees; some public chains have gained market share with low costs and fast transactions, but their level of decentralization is concerning.

In response to these challenges, a new type of Blockchain has emerged. It plans to create a sidechain on the Bitcoin Block while maintaining full compatibility with EVM. This design aims to meet the fundamental needs of decentralized financial activities while leveraging the security of Bitcoin to provide zero-fee stablecoin transactions, thereby unlocking the potential of a multi-trillion-dollar stablecoin market.

Innovative Technology Solutions

The reason for the project to choose to build a Bitcoin sidechain lies in the unparalleled security and decentralization characteristics of the Bitcoin network, providing an ideal foundation for global stablecoin settlements.

In terms of the core consensus mechanism, the project team has independently developed a new consensus algorithm evolved from Fast HotStuff, which supports processing thousands of transactions per second, meeting the demand for transaction speed in global stablecoin payments. This algorithm is written in Rust and optimized for low end-to-end latency.

In addition, the project does not operate in isolation but achieves trust-minimized security inheritance by anchoring the state root to the Bitcoin network. This design allows the project to reach a security level comparable to Bitcoin without relying on a single validating node or intermediary, reducing the risk of single points of failure or attacks.

To address the pain points of high transaction fees, the project has launched a "zero-fee" transfer mechanism for certain stablecoins, which will enhance the universality and convenience of stablecoin payments. The network adopts a block architecture and is designed with two parallel processing layers: one layer is responsible for regular fee transactions, which are faster; the other layer specifically handles free transactions, which are slightly slower. Users can choose different transaction methods based on their needs. To ensure smooth channels, the project has also introduced an order mechanism, including rate limits, minimum balance requirements, and replacement strategies, to maintain overall efficiency and the normal operation of the network.

Token Issuance and Participation Rules

The project's native coin plays a core role in the system, not only ensuring the security of the consensus mechanism and supporting EVM execution based on Reth, but also underpinning the trust-minimized Bitcoin bridge.

The public sale will take place on the project's official website, and participants must complete KYC identity verification, jurisdiction screening, and other compliance procedures. Pre-staking will open on June 9, and the actual sale will begin a few weeks later. The number of units for each participant corresponds to a guaranteed allocation, and various stablecoins can be used to purchase tokens. This round of public offering plans to sell 10% of the total token supply, corresponding to a fully diluted valuation of $500 million.

The participation process includes the deposit stage, lock-up period, and token distribution stage. In the deposit stage, participants deposit stablecoins into the designated contract and accumulate "units" based on the duration of the deposit, which determines the final allocation share. After the deposit period ends, the funds will enter a lock-up period of at least 40 days. When the project's mainnet Beta goes live, participants will receive the corresponding allocated tokens, and the funds from the deposit period will also be bridged to the new network and can be withdrawn.

It is worth noting that this public offering is only open to qualified regions. User participation from certain areas may be subject to additional restrictions, such as the necessity to verify accredited investor status, and the purchased tokens will be locked for 12 months and cannot be resold.

The project team emphasizes that this issuance structure reflects the core values of its network: encouraging long-term participation, maintaining aligned interests, and enhancing transparency to ensure that early contributors can fairly share in the benefits brought by the network's growth.