On Monday, Domo, the developer behind the BRC-20 token standard, unveiled a governance change for the token. The protocol’s token management will now be overseen by the creator’s non-profit organization, the Layer 1 Foundation (L1F).
Domo disclosed that L1F will work in conjunction with UniSat and Best in Slot, prominent Bitcoin infrastructure providers, who will assume the role of lead maintainers for BRC-20.
Overheard@isabelfoxenduke :
“Layer 1 foundation will explore decentralized governance structure for BRC 20 tokens”
— Cosmos Joe 🎙️NFT NYC (@CosmosDefi) March 11, 2024
Operating on the Bitcoin network’s Ordinals Protocol, BRC-20 facilitates the transfer of non-BTC digital assets. This technology utilizes “inscriptions” on satoshis, BTC’s smaller units, to track, store data, and facilitate asset transfers within the Bitcoin Network.
Partnerships and Progression in BRC-20
Governance, both at the protocol level and within the broader Bitcoin network, has long been a nuanced and multifaceted issue, fraught with complexities and challenges. Throughout Bitcoin’s evolution, navigating governance structures and decision-making processes has been essential in maintaining the network’s integrity and functionality.
Earlier this year, these governance intricacies came to the forefront with a notable disagreement between Domo, the developer behind the BRC-20 protocol, and UniSat, a prominent marketplace operating on the Ordinals Protocol. At the heart of the disagreement was a proposed protocol upgrade for Ordinals, referred to as “Jubilee,” which UniSat advocated for but faced opposition from Domo. Domo expressed concerns that the proposed upgrade could potentially sow division within the burgeoning ecosystem, highlighting the delicate balance required in navigating protocol changes and upgrades.
Despite the tensions that arose from this conflict, it’s important to acknowledge UniSat’s significant early contributions to decentralizing the BRC-20 ecosystem. UniSat played a crucial role in the early stages of BRC-20’s development, contributing to the expansion and diversification of the ecosystem. Recognizing UniSat’s pivotal role underscores the collaborative and evolving nature of governance within the Bitcoin ecosystem.
Moving forward, it’s essential for stakeholders within the Bitcoin community to continue engaging in constructive dialogue and collaboration to address governance challenges effectively. As the Bitcoin network continues to grow and evolve, robust governance mechanisms will be paramount in ensuring its resilience, adaptability, and continued success in the ever-changing landscape of digital assets and blockchain technology.
Supervision and Prospects for Expansion
UniSat made significant strides as the pioneer marketplace to introduce BRC-20 tokens, marking a pivotal moment in the evolution of decentralized finance (DeFi). Through collaboration with Best in Slot, UniSat facilitated the development of a decentralized indexing product tailored specifically for BRC-20 tokens. This innovative product aimed to enhance accessibility and streamline the trading experience for users within the BRC-20 ecosystem, fostering further adoption and utilization of these tokens.
Domo, the driving force behind the BRC-20 standard, articulated a clear vision for the future, emphasizing the importance of supporting the growth of Bitcoin metaprotocols not only on Ordinals but also beyond. The creation of a robust infrastructure to bolster the expansion of Bitcoin metaprotocols underscores Domo’s commitment to fostering innovation and driving progress within the cryptocurrency ecosystem. As Domo stated, while BRC-20 served as an early experiment, it has paved the way for a wave of emerging standards that require comprehensive tools, infrastructure, and support to flourish.
In line with its dedication to promoting the sustainable development of the BRC-20 standard, Domo took proactive steps to establish an oversight committee. Comprising key stakeholders and entities deeply embedded within the Bitcoin ecosystem, including the Bitcoin Ordinals wallet, Oyl (which recently secured pre-seed funding with Domo’s investment), and UXTO Management, a subsidiary of Bitcoin Magazine’s parent company BTC Inc., the oversight committee serves as a crucial governance framework. Through strategic collaboration and collective decision-making, the oversight committee aims to ensure the effective governance and long-term viability of the BRC-20 standard, safeguarding its integrity and promoting its continued growth and adoption.
Overall, the collaboration between UniSat, Best in Slot, and Domo, coupled with the establishment of the oversight committee, underscores a concerted effort to drive innovation, enhance accessibility, and foster sustainable growth within the BRC-20 ecosystem. As the cryptocurrency landscape continues to evolve, initiatives like these play a vital role in shaping the future of decentralized finance and advancing the broader adoption of blockchain technology.
