The Bitcoin Asset Protocol BRC-20 Strengthens Governance with New Maintainers
The developer of the BRC-20 token standard, Domo, recently announced a change in the governance structure of the protocol. The non-profit organization, Layer 1 Foundation (L1F), will now oversee the management of the token. Additionally, L1F will collaborate with UniSat and Best in Slot, prominent Bitcoin infrastructure providers, to serve as BRC-20’s lead maintainers.
Overheard@isabelfoxenduke :
“Layer 1 foundation will explore decentralized governance structure for BRC 20 tokens”
— Cosmos Joe (@CosmosDefi) March 11, 2024
BRC-20 and its Partnerships
BRC-20 operates on the Ordinals Protocol within the Bitcoin network, enabling the transfer of non-BTC digital assets. The technology utilizes “inscriptions” on satoshis to track and store data for asset transfers.
A Complex History of Governance
Governance has historically been a complex issue for both the BRC-20 protocol and the broader Bitcoin network. Earlier this year, a disagreement arose between Domo and UniSat, an Ordinals Protocol marketplace. UniSat supported a protocol upgrade called “Jubilee,” which Domo opposed, fearing it could create divisions within the growing environment.
Recognition of UniSat’s Role
Despite their past conflict, Domo acknowledged the crucial role UniSat played in decentralizing the BRC-20 ecosystem. UniSat was the first marketplace to list BRC-20 tokens and collaborated with Best in Slot to develop a decentralized indexing product for BRC-20.
Oversight and Future Growth
In order to support the governance framework of the BRC-20 standard, Domo established an oversight committee. This committee includes key players such as the Bitcoin Ordinals wallet, Oyl (which recently received funding from Domo), and UXTO Management, a subsidiary of BTC Inc., Bitcoin Magazine’s parent company.
The Goal: Supporting Bitcoin Metaprotocols
Domo’s goal is to foster the growth of Bitcoin metaprotocols on Ordinals and beyond. While BRC-20 was an early experiment, there is now a demand for tools, infrastructure, and support to help these standards thrive.
Hot Take: Enhancing Governance for BRC-20
The recent shift in governance for the BRC-20 token standard reflects an ongoing effort to improve its management and support its growth within the Bitcoin network. By partnering with UniSat and Best in Slot as lead maintainers, the Layer 1 Foundation aims to ensure effective oversight and decentralization of the protocol. This move demonstrates Domo’s commitment to addressing governance challenges and fostering innovation within the BRC-20 ecosystem.
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