A group of bitcoin mining companies (BTC) have supported standard hashrate and the recently introduced TAU protocol. A synthetic asset platform that uses hash rate derivatives as a linkage mechanism.
Announced on Friday The TAU project aims to create algorithmic versions of Bitcoin and other proof-of-work assets through a revised billing mechanism. The basic concept is similar to simple rebill coins, including Badger’s synthetic bitcoin.. However, the TAU protocol increases the value of your synthetic assets through Bitcoin, which is derived from the mining hash rate.
The TAU mechanism is based on the Bitcoin Standard Hashrate Token (BTCST), the Standard Hashrate Mining Power Token, which represents 0.1 terahashes of mining power. Mostly, BTCST can be used to get an amount of Bitcoin equal to the mining hash rate it represents. The TAU protocol accepts BTCST tokens and rewards stakers with synthetic bitcoin, while the bitcoin reward associated with the hash rate token is pocketed.
The bitcoin collected by BTCST is then used in a collateral pool that is triggered when the synthetic asset trades below its parity. The mechanism reduces the number of synthetic tokens in each wallet while using the BTC pool to buy and burn tokens on the open market.
If TAU’s algorithmic token is trading above its predicted parity, the protocol will adjust the synthetic difficulty parameter to create more tokens from the BTCST stake. This mechanism is similar to the Empty Set Dollar and other coupon-based currencies that only distribute new deliveries to special classes of token holders.
Standard Hashrate is backed by a group of great Bitcoin miners including Atlas Mining, Btc.Top, Easy2Mine, Genesis Mining, and Hengjia Group. The group claims to control 12% of the Bitcoin hash rate. The TAU protocol and BTCST tokens are only present in the Binance Smart Chain, which makes it one of the few original native BSC projects.
The Standard Hashrate Project is an attempt to combine the world of bitcoin mining with decentralized funding, thus securing rewards for proof of work. According to his whitepaper, the project sees itself as a more transparent and composable approach for cloud mining to create a two-sided market for hash rate derivatives. Commenting on the news, Tony Ma, CEO of Atlas Mining:
“We believe that BTCST linked bitcoin mining to the DeFi world. With BTCST, we can first earn real BTC through native DeFi staking. Now we can use BTCST on synthetic assets to prove work. This is a logical step for BTCST as a bridge for Bitcoin to enter DeFi. “