PANews reported on July 8 that according to The Block, ZKM, an interoperability protocol incubated by Metis DAO, has announced plans to launch a Bitcoin Layer 2 solution called GOAT Network later in the third quarter. The solution will be the first decentralized Bitcoin Layer 2, sharing network ownership. Unlike other Bitcoin Layer 2s, whose networks and revenues are controlled by project teams or foundations, GOAT Network said it will be launched using a decentralized sorter model, where sorter node operators can earn income through Bitcoin while helping to ensure network security, as well as activity fees including block production, transaction sorting, and maximum extractable value (MEV) opportunities.
The GOAT Network team said: "GOAT Network aims to become the first Bitcoin L2 to share network ownership and fees through decentralized sorters. GOAT also uniquely enables the entire community (including small holders) to stake their BTC into sorter nodes and earn sustainable returns." In terms of zero-knowledge proof (ZK) provers, GOAT Network is using ZKM's proof service. "The decentralization of the proof network will depend on the progress of ZKM's proof service. In addition, compared with Bitcoin's existing state channel decentralized Layer 2 Lightning Network, GOAT Network is also compatible with the Ethereum Virtual Machine and enables smart contract functions.
GOAT Network claims that it has received commitments of 5,000 BTC ($287.5 million) from five institutional node operators. The team said the network plans to launch with seven node operators and expand to dozens over time, with the goal of obtaining more commitments to ensure sufficient liquidity to support its Bitcoin earnings and decentralized finance (DeFi) ecosystem. The team claims that applications on the first day of launch will include leading decentralized exchanges (DEX), lending and perpetual contract platforms, supporting trading of BRC-20 and other Bitcoin native assets, but no further details were provided.
GOAT Network also revealed its token economics on Monday, reserving 42% of the GOAT token supply for sorter mining and community mining, providing returns to node operators and stakers who lock Bitcoin in the network. Another 6% is allocated to airdrop activities, 1% is allocated to key opinion leaders (KOLs), and the remaining 49% is reserved for community contributors. The team said the total supply of GOAT will be 1 billion tokens, but no further details can be disclosed at this time. Before the mainnet launch, GOAT Network also launched the "GOAT Club" rewards program on Monday, providing future rewards to Bitcoin holders who stake 0.001 BTC or more, "whitelisted" first-day application release partners, and sorter node operators who lock Bitcoin to ensure network security.
GOAT Network also said it plans to start a Series A round soon, with the goal of raising $5 million at a $100 million valuation. In May, ZKM announced it had raised $5 million at a $50 million valuation before its Series A round, which closed in November 2023. OKX Ventures led the round, with participation from Amber, Crypto.com, Metis Foundation, and Polygon Ventures.
