Since the launch of brc20-swap on the testnet, UniSat has received a substantial amount of valuable feedback from the community. We extend our sincere appreciation for the support, encouragement, and constructive feedback from the community. These insights are crucial for enhancing the system.
Based on our observations during the testnet phase, we have identified some potential issues that need addressing, and there is still room for improvement and optimization on the existing product. Taking these factors into account, we have made a thoughtful adjustment to the launch schedule of brc20-swap.
In this announcement, we will share information about the mainnet launch schedule of brc20-swap, service fees, incentive models, standardization progress, and more.
Mainnet Launch Schedule
UniSat plans to roll out the mainnet version of brc20-swap according to the following schedule:
Starting from October 18th, UniSat plans to gradually distribute commemorative inscriptions called brc20-swap Prime Access to the community.
Similar to the Early Access, Prime Access is entirely free and can be transferred (effective after 300 confirmations). It provides access to the initial mainnet version. What sets Prime Access apart is that it comes with a unique identifier (e.g. #1), making it suitable for collectors.
On October 25th, UniSat will launch the mainnet version of brc20-swap.
During the initial mainnet launch, we will continue to distribute Prime Access for free. As more users join, we will closely monitor the system’s performance and promptly address any issues that may arise.
Following a series of iterations, we will eventually open up all features to all users.
We have learned valuable lessons from the UniSat Marketplace launch, and by engaging effectively with all active participants, we aim to launch brc20-swap on the mainnet in a smooth way.
Service Fees and Incentive Model
brc20-swap charges a 0.3% service fee to all users participating in transactions. Approximately 1/6 (0.05%) of this fee is collected by UniSat, while the remaining 5/6 (0.25%) is distributed among all liquidity providers for the respective trading pairs.
This fee structure is primarily based on the current fee rate standards used by UniSwap.
Details regarding staking LP tokens for rewards will be explained in more detail in future updates.
Network Fees
Please be aware that, similar to UniSat Inscribe and UniSat Marketplace, the system incurs network fees to ensure that transactions are accepted by the Bitcoin mainnet.
Unlike the previous services, brc20-swap benefits from optimizations brought about by rollups. It can aggregate as many as 2000+ swap operations within a single transaction, significantly reducing the risk of potential mainnet congestion (which can result from the limited capacity of the network). Additionally, the cost per byte for users is reduced due to the compactness of batch submissions.
Based on calculations, the fee charged on this Layer 2 for rollup aggregation is approximately 20% of the cost users would bear when submitting directly to the mainnet. For instance, in a typical scenario, the virtual byte cost for users to mint swap inscriptions themselves is 412 bytes. With sequencing and aggregation, the per-user virtual byte cost is significantly reduced to 87 bytes.
In brc20-swap, the sequencer (acting as a mini-L2) accepts user operations and periodically synchronizes and settles all transactions onto the Bitcoin mainnet (the rollup process). Given that this mini-L2 directly serves all brc20 assets, charging a specific brc20-asset as gas fees on this Layer 2 becomes a reasonable consideration.
Upon the mainnet launch, we are inclined to charge {sats} (which is brc20-sats specifically) as gas fees for brc20 assets on Layer 2. Apart from effectively reducing network fees to an expected 1/5, another advantage is the increased functionality and utility value of brc20 assets.
Standardization and Foundation Contributions
Achieving standardization for brc20-swap (being recognized as a valid extension of brc-20) as soon as possible holds significant practical importance for both UniSat and users. We hope to encourage indexers to support brc20-swap modules, helping us in the transition from black modules to white modules. This would dramatically reduce the complexity of withdrawals from modules to be consistent with typical TRANSFER inscriptions.
To support the development of Layer1 Foundation, UniSat will contribute 2% of the revenue to L1F, driving further improvements in brc20 development and standards. Additionally, UniSat will open-source the complete interpretation and validation source code for brc20-swap to facilitate early support by indexers.
We have a straightforward goal: to achieve one million transactions in the brc20-swap module as soon as possible. The sooner we accomplish this goal, the more effectively we can demonstrate the rationality and effectiveness of brc-20 modules as a way to extend brc-20.
We are confident in the standardization of brc20-swap. “A protocol that can be effectively extended” aligns strongly with the interests and expectations of everyone and can become the most prosperous and powerful driving force in the Bitcoin ecosystem.
Others
In the upcoming series of announcements, we will cover technical aspects that are of great interest to users, including deposit details, withdrawal details, and the decentralization status of the system.
UniSat Team
2023.10
