A blockchain developer is set to fork the BRC-20 token standard to bring decentralized finance capabilities to the Bitcoin network.
A blockchain developer under the pseudonym Mikael.btc, known as the creator of the BRC-100 token standard, wants to fork BRC-20 in an attempt to roll out a new protocol designed to bring decentralized finance to the Bitcoin (BTC) network.
in Posted on August 9 In X, the developer outlined plans for the fork, emphasizing that the upgrade will address key limitations of the BRC-20 standard, including “lack of programmability,” scalability challenges, and the lack of DeFi infrastructure.
According to Mikael.btc, the new protocol will leverage technologies like Inscriptions — used to add metadata to Bitcoin sats — and OP_RETURN — a script that allows data to be stored within transactions — to enhance Bitcoin’s functionality, and enable users to access decentralized finance.
“Every BRC-20 token will be pegged to a BRC-100 token with the same token and the same supply. 100% of the new BRC-100 token will be distributed to holders of the original BRC-20 token, in exactly the same amount as existing BRC-20 holdings.”
Michael.BTC
The developer added that after the fork, BRC-20 token holders will automatically receive equivalent assets on the BRC-100 protocol. However, those holding BRC-20 tokens on centralized exchanges will need to wait for the exchanges to distribute the new forked assets.
Efforts toward decentralized finance on the Bitcoin network have recently gained momentum after a research report from Pantera Capital, a cryptocurrency venture capital firm, predicted that a Bitcoin-based DeFi system could attract hundreds of billions of dollars in liquidity through Web 3 protocols, meaning that Bitcoin’s DeFi sector could achieve a market share similar to that of Ethereum.