Although Bitcoin has always played the role of a "peer-to-peer electronic cash system", its innovation has never stopped, such as the emergence of technologies such as Lightning Network and Stacks.
At the end of last year, Bitcoin Core contributor Casey Rodarmor created the Ordinals protocol, introducing the concepts of ordinals and inscriptions, giving birth to the first NFT on the Bitcoin network.
Since NFTs can be issued through Ordinals, can tokens also be minted through Ordinals?
So on March 8, 2023, domo proposed to use Ordinals inscriptions in JSON data format to deploy token contracts, mint coins, and transfer money.
The experimental Bitcoin network homogeneous token protocol BRC-20 was born, and the first BRC-20 token – $ordi was issued at the same time, with a total of 21 million (tribute to BTC), first come first served, and everyone can mint it for free.
"Skin in the game" means that participants not only share the benefits of a particular activity or decision, but also bear the risks and responsibilities. This concept emphasizes that participants must personally bear certain risks to ensure that they have a real interest in the consequences of the decision.
In the business and investment world, investors may require founders or management to have their own money invested to ensure that their interests are aligned with those of the investors. This practice can reduce agency problems and incentivize management to make decisions that are beneficial to the long-term success of the company.
The concept of "skin in the game" may not be accurate when introduced to BRC20 (ordi), but I think the coolest thing about ORDI is that there is no project owner and no centralized control. Everyone mints fairly, sharing benefits and risks. Even if the initiator of the domo project (experiment) wants to obtain ordi, he needs to spend the same gas to mint.
Ordi mints on March 9/10 cost an average of $3 = 1000 pieces
The price on Gate Exchange reached 29.5/unit on May 8. If held for 2 months, $3 would turn into $29,500, a 9,833-fold increase.
On April 27, I mentioned Ordi. I did not know enough about it and thought the risk was too high, so I did not dare to recommend it too much. However, the point I wanted to make at that time was that the existence of Ordi is reasonable, and new concepts and new narratives are always the direction pursued by the cryptocurrency circle. What you should think about now is whether you will buy it next time when there is something new in front of you.
In April, I went through the entire BRC20 process myself, and I also held tokens that were not minted at that time, such as noot, etc. I also minted tokens myself. At that time, I minted 1 CHN1 (CHINA NO.1) with a quantity of 9.6 million, and minted 1949 each time! Everyone understands. Haha.
On May 8, I mentioned that the founder of Xen had just opened a mint vmpx. At that time, the gas cost was $30 per piece, containing 420 coins, and the cost price was $0.07.
It was launched on May 9th, and the peak price reached $0.3888, achieving a 5.5 times return. Now the market value of vmpx has surpassed the early meme, pepe and other coins, ranking second. Although I missed ordi, I grabbed VMPX at the first time.
Ordi reminded me of cryptopunks, which was an experimental project in 2017.
The CryptoPunk series of avatars was born in 2017 and was originally an experimental project of Larva Labs. At that time, this New York software company designed a software program that generated a total of 10,000 24 x 24 pixel 8-bit avatars, each with randomly generated characteristics. The company initially hoped that the avatars could become characters in mobile apps or games, but that never came to fruition. Larva Labs later changed its strategy. It first kept 1,000 of the avatars for itself, and then distributed the remaining 9,000 to users with Ethereum wallets for free. After the users obtained the avatars, they could resell them freely.
10,000 CryptoPunks were gradually created between June 24 and July 2, 2017. This process lasted about a week. During this time, Larva Labs generated and distributed CryptoPunks one by one through smart contracts and gave them away for free to anyone who wanted to own one.
As shown in the picture,#5822was sold for 8keth (US$23.7 million) on February 12, 2022, which is really a huge profit with no investment.
After reading this, have you ever thought about a question? A truly successful project does not need a centralized project owner. If there is a project owner, the meaning of centralization will be lost. Investment without capital will be useless.
Here I remember a joke I saw on Twitter.
Does BTC have a project owner? No, so it is priceless.
Next, let’s look at another project: Yearn.finance (YFI)
Yearn.finance was launched by Andre Cronje in early 2020 and is an Ethereum-based protocol. The main goal is to generate the highest yield for users' deposited ether, stablecoins, and altcoins. Andre Cronje is a South African financial technology developer who started to create Yearn.finance after noticing the inconsistent returns offered by different DeFi applications.
Unlike the initial coin offering (ICO) model, where users pay a certain price for each new coin, YFI users must personally participate in the protocol. This mechanism allows the community to quickly build around the project because all users have the same ability to influence Yearn.finance through governance tokens. Truly "skin in the game"
The initial way to obtain YFI tokens is through liquidity mining rather than free distribution. When the Yearn.finance platform was launched, the distribution of YFI tokens was designed to reward users who provided liquidity. Specifically, the initial YFI token distribution was carried out through a series of liquidity mining activities.
On May 12, 21, it reached $95,000, a 31,666-fold increase from the initial launch price of $3 to its highest point.
In addition, there are
0x (ZRX): 0x is a decentralized exchange protocol that allows users to trade ERC-20 tokens on Ethereum. In 2017, the 0x project distributed ZRX tokens for free to Ethereum address holders through airdrops. These freely acquired tokens later achieved significant value growth on the secondary market.
Uniswap (UNI): Uniswap is a decentralized trading protocol that aims to provide a trading experience without intermediaries. In 2020, the Uniswap team distributed UNI tokens for free to users who had previously traded on the Uniswap exchange. These tokens quickly gained market recognition and value growth in the time after distribution.
What do the above Cryptopunks, YFI, and rodi have in common in achieving thousands or tens of thousands of times growth?
1. Innovation and pioneering
Both Cryptopunks and YFI are pioneering projects in their fields. Cryptopunks is a pioneer in the field of NFT (non-fungible tokens), which has attracted people's interest by combining digital art and unique virtual characters. YFI is an experimental project in the field of decentralized finance (DeFi) that aims to provide optimization strategies automatically managed by smart contracts. The innovativeness and pioneering nature of these projects have won them attention and recognition.
2. Scarcity
The scarcity of Cryptopunks is reflected in the fact that they are very limited in number, with only 10,000 different Cryptopunks in existence in total. This makes each Cryptopunk unique and scarce, as the supply is limited and the demand is high, which drives its price up.
The scarcity of YFI is reflected in its total supply of only 30,000. YFI tokens have a relatively unique issuance method, which is obtained through decentralized liquidity mining. This results in a relatively small supply of YFI, so scarcity plays an important role in its price increase.
There are 21 million Ordi in total, which is the same as the number of Bitcoins. It also has the property of scarcity and also implies BTC.
3. Community participation and consensus mechanism
These projects have built strong communities and adopted a consensus mechanism to drive the development of the projects. Cryptopunks and YFI both rely on the participation and governance of community members, who can vote to determine the direction of the project and important decisions. This community participation and consensus mechanism helps build trust in the project and enables the project to gain wider support.
4. Market demand and popularity
The fields where Cryptopunks and YFI are located are both hot spots in the current market. The NFT market has developed rapidly in the past few years, attracting the attention of a large number of investors and collectors. The DeFi field is a hot application field of blockchain technology in recent years, attracting a large amount of funds and projects. Cryptopunks and YFI are excellent projects in these hot fields, so they have also received more attention and investment.
Do you know how to find the next project? I hope you can think about it. It will be my greatest comfort if it can be helpful to you. Welcome to discuss and forward.
