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

BMAX introduces a novel system that aims to embed the time-value consideration directly into the Bitcoin protocol without altering its core principles. This system utilizes a proof-of-work sharechain, functioning both as a standard mining pool and incorporating unique features to account for the time value of satoshis. Through the issuance of shares and bonds, BMAX creates a market-driven discovery process for pricing the temporal value of Bitcoin, facilitating a decentralized approach to addressing economic challenges. Shares represent perpetual claims on future mining rewards, while bonds are formed by burning shares, creating a deflationary mechanism that highlights the time-value aspect within this ecosystem.

The introduction of a dynamic bonding price adjusted through a control loop is a key feature aimed at stabilizing the expected redemption time of bonds, thus enabling a Bitcoin-native term structure for pricing time. This initiative seeks to enhance the utility of Bitcoin as a base monetary layer, supporting complex economic activities without compromising its decentralized nature. The concept also involves leveraging Bitcoin's infrastructure for a decentralized lottery system, ensuring fairness and promoting active engagement through a perpetual mechanism. The transferability of lottery tickets adds a strategic component, potentially broadening participation beyond traditional schemes.

BMAX's ambition extends to addressing broader economic implications, such as the notion of achieving a true risk-free interest rate in a Bitcoin-centric financial system. Discussions around the fixed supply of Bitcoin suggest a theoretical zero percent risk-free rate, challenging conventional financial theories and highlighting the uniqueness of Bitcoin's economic model. However, the practical application of these concepts faces skepticism, especially concerning the demand and conceptual support within the community. The comparison with Hashpool, which focuses on mining futures, provides an external reference point for evaluating the effectiveness and potential advantages of BMAX's approach to the valuation of mining shares.

Critical feedback emphasizes the need for BMAX to address issues related to the distribution of rewards and the management of unbonded shares, suggesting adjustments to maintain competitive parity and ensure the viability of contributions. Additionally, the possibility of selling bonded shares on an open market is discussed as a means to provide liquidity options for miners, aligning with the demand for immediate access to rewards. These discussions underscore the importance of a design that maintains incentive compatibility, oracle-free operation, and a non-custodial nature, aiming to refine BMAX’s contribution to the Bitcoin ecosystem. For further exploration of Hashpool and its approach to mining futures, interested readers can visit Hashpool, providing insight into alternative strategies within the blockchain mining domain.