BMAX: pricing “sats now vs sats later” via a mining sharechain (no L1 changes, no custodians, no oracles)

This initiative seeks to establish a decentralized financial system that leverages Bitcoin's existing infrastructure to introduce a market-driven mechanism for determining the time-value of satoshis, without altering the core protocol or depending on external custodians or financial instruments. Central to BMAX is its operation as a proof-of-work sharechain, functioning akin to a p2pool but with unique rules that emphasize the time value of satoshis through the issuance of shares and bonds. Shares represent perpetual claims on future Bitcoin rewards, while bonds are created by burning shares for a place in a FIFO queue, serviced by future coinbase rewards, thereby introducing a deflationary aspect to the supply of shares. A significant innovation is the dynamic adjustment of the bonding price to maintain the expected redemption time of bonds, facilitating a Bitcoin-native term structure for pricing the time value of sats.

BMAX also proposes an innovative lottery system based on the decentralized nature of blockchain technology, promoting active engagement and fairness through a perpetual mechanism. This system ensures that the lottery is sustained over time, providing continuous opportunities for participants, with outcomes comparable to solo mining efforts. It introduces transferable tickets, adding flexibility and strategic participation possibilities, aiming to attract a broader audience interested in the technological and participatory aspects of the model.

The discussion around Bitcoin serving as a global base currency underscores the need for a Bitcoin-native time pricing mechanism, given its fixed supply and the implications for a theoretical zero percent risk-free interest rate. The conversation delves into the complexities and speculative nature of Bitcoin's role in the global financial system, exploring the practicality and utility of the BMAX mechanism beyond the mining sector. It highlights the challenges of minimizing protocol risk, optimizing economic incentives, and fostering a trust-minimized environment, raising questions about the demand for and conceptual support of BMAX within the Bitcoin community.

Exploring risk-free rates and their impact on currency value and investment strategies reveals the nuanced relationship between future miners and current shareholders in sharechain networks. The dialogue addresses the challenges and inefficiencies associated with unbonded shares, suggesting mechanisms to ensure fairness and competitiveness. The potential for creating a market for bonded shares is discussed, offering immediate liquidity for miners and expanding beyond the initial user base to a broader market.

Finally, comparing BMAX with Hashpool, despite superficial similarities, underscores BMAX's distinctive features, such as its non-custodial nature and ability to function without relying on oracles or federations. The discussion emphasizes the different approaches to valuing future mining shares and the potential demand for a system that allows for immediate liquidity while maintaining decentralization and autonomy, reflecting ongoing debates within the cryptocurrency sphere about innovation, risk management, and the future of Bitcoin as a self-sustaining monetary system.