The Layer 1 Foundation: Formalizing the BRC-20 Token Standard
The immense popularity of Bitcoin Ordinals and new meme coins minted on the worldโs top blockchain has brought a coalition of Bitcoin developers together to cooperatively formalize the underlying BRC-20 fungible token standard. The newly formed Layer 1 Foundation announced its new governance body on Monday, focused on ensuring trust and transparency around the protocol and calling it crucial for future growth.
A Coalition for Standardization
The Layer 1 Foundation, co-founded by pseudonymous BRC-20 creator Domo, aims to establish a unified approach to governance for the BRC-20 tokens. The foundation includes participation from Hiro, Alex Labs, Oyl Dynamics, Allium Labs, and UTXO Management. Unisat and Best in Slot will co-lead the maintenance of the BRC-20 protocol going forward.
The Goals of the Layer 1 Foundation
In its resolution, foundation members commit to a series of goals:
- Pursuit of simplicity in technical architecture
- Safety-first approach when making changes to the protocol or its indexers
- Fostering mutual discussions
- Considering the community when pursuing changes in development
- Making protocol-level changes open-source
Avoiding Standoffs and Hard Forks
By publicly declaring their support for the Layer 1 Foundationโs framework, the hope is to avoid another standoff and threat of a hard fork of the BRC-20 protocol. If one of the members decides to hard fork BRC-20, it would happen in the open.
The Jubilee Update Dispute
In January, the BRC-20 community faced a dispute over whether to implement the Jubilee update to Bitcoin Ordinals. Domo advised against the update until it could be sufficiently tested, citing safety issues. Unisat, on the other hand, supported the update. Despite the disagreement, there were no plans for a hard fork at that time.
The Importance of User Protection and Decentralized Governance
Despite the politics involved, the Layer 1 Foundationโs main goal is protecting BRC-20 protocol users and prioritizing their needs over a single developerโs. The foundation aims to decentralize governance as much as possible to ensure that no single company has outsized power and influence in making decisions that may benefit them at the expense of users.
Hot Take: Building Trust and Transparency for Future Growth
The establishment of the Layer 1 Foundation and its governance body is a significant step towards formalizing the BRC-20 token standard and ensuring trust and transparency within the Bitcoin community. By bringing together key players in the industry and committing to a set of goals, the foundation aims to prevent standoffs and hard forks that can disrupt the ecosystem.
The dispute over the Jubilee update highlighted the need for clear protocols and open discussions within the community. With its focus on simplicity, safety, and community input, the Layer 1 Foundation seeks to address these issues and provide a framework for future development.
Ultimately, by prioritizing user protection and decentralizing governance, the foundation aims to create an environment that benefits all stakeholders involved. As Bitcoin Ordinals and meme coins continue to gain popularity, establishing standardization and cooperative governance will be crucial for their long-term success.
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