HarryPotterObamaSonic10Inu will soon be the reserve currency of the modern world. In the meantime tho, it will have a Layer 2 on Berachain. This Layer 2 will be called BLOCK CHAIN.

This article will explain my proposed economic design for BLOCK CHAIN, and maybe drop a lil alfa. Too bad u mouthbreathers cant read lmao. Blz note that this is just my proposal for an economic design, and not something that is necessarily going to happen.

Here is the full diagram

Description

• BLOCK CHAIN would generate revenue from:

  • Fees from native apps

  • Transaction fees

  • Yield on rehypothecated bridged assets - tokens bridged to BLOCK CHAIN from Berachain L1 will be put to work generating yield whilst backing wrapped tokens on the L2, and earning BGT

  • Bribe and staking revenue accrued from staking tokens in Berachain's Proof-of-Liquidity Gauges

• These revenues will be re-injected into the ecosystem

  • They will be directed to users and LPs in the BLOCK CHAIN ecosystem

  • This will happen via users staking receipt tokens received from various activities, in respective whitelisted gauges

  • $BITCOIN stakers will control which gauges receive a share of the revenue, and how much of it

Bro im literally Yeetarded, exblain dis blz

Aight lemme break it down for u mfers. BLOCK CHAIN will make shmoney from a bunch of sources. This revenue will all go back (directly and indirectly) to users of the L2, and $BITCOIN stakers.

Where will the money come from? The staking yield you would earn is from bribes people are paying you if you stake the thicker ticker: $BITCOIN.

I can stake my $BITCOIN? Not yet. In my proposal tho, $BITCOIN staking would be enabled on the L2.

Wait, why are mfers paying me bribes? Cos by staking $BITCOIN, you will be able to direct all the revenue that BLOCK CHAIN earns to certain user groups on the L2. For example, let's say BITCOIN/YEET LPs can stake their LP token to earn revenue in the BLOCK CHAIN gauges. If I'm one of these LPs, it makes sense for me to bribe $BITCOIN stakers to direct this week's revenue to myself. Alternatively, I can buy and stake $BITCOIN in order to have more influence in the vote of where this revenue goes.

WTF are gauges? This is a fancy word for describing a system where the $BITCOIN stakers have a weekly vote to choose who to send revenue to. If you don't particularly care where the revenue goes, you can just accept bribes people pay you to vote a certain way.

nAtiVe YiELd and Proof of Liquidity

When funds are bridged from an L1 to an L2, the tokens that are on the L1 are locked into a smart, and a message is passed to the L2 that says "ayo, that dude locked up his tokens on the L1 so issue him a wrapped representative of those tokens".

There are other methods of "bridging" such as burning+minting but fuck that cos it doesnt enable our rehypothecation for gigajuiced yield and incentives on the L2

Anyways, after the message is passed form the L1, a smart contract on the L2 receives it, and mints a new token that represents that underlying "bridged" token.

In theory, the tokens that lay dormant in the L1 smart contract could be put to work and generate some yield. This is not a new idea by any means, but imo its a good one - and should be used (responsibly) for fun, degen focused ecosystems.

This combines nicely with Berachain's Proof-of-Liquidity, which is a gauge system itself. The bridged assets could be staked somewhere in order to earn $BGT: the ultimate token on Berachain. Owning this on Berachain, is like having staked $BITCOIN on the L2; it can generate revenue from bribes.

Earned $BGT may be burned 1:1 for $BERA, which can then be swapped into $BITCOIN and bridged to the L2 in order to increase value redistributed via the BLOCK CHAIN gauges.

Flywheel

The more revenue that is generated, the more value that $BITCOIN stakers can control, as they choose where it goes. When there is more value that they can control, the higher bribe revenue they should be able to command from interested parties and LPs on the L2.

TLDR? $BITCOIN stakers winning, and BLOCK CHAIN users winning.

Open question for nerds

• Where should the main $BITCOIN liquidity be? It's currently on Ethereum, which i think should still be the main source. However, should the secondary onchain source of liquidity be on Berachain, or on the L2?

• $BITCOIN reserves or some chain revenue must be used in order to make bribes on the Berachain L1 gauges in order to earn $BGT. Which should be used? How much?

• Should staked $BITCOIN have an unstaking period? (I fink it shud hab a smol one)

HMU on twitter to discuss any of dese points, or to ask me any Yeetarded Qs.