As we approach our mainnet launch, we’re excited to release Tokenomics v3, where we announce new developments such as the BTC Fund and our commitment to provide regulatory clarity to users of the anetaBTC protocol with the establishment of a legal framework in Malaysia — one of the few countries in the world that have formalized regulations concerning the issuance, trading, and custody of digital assets. The rest of this article will explore what to expect and how to get involved with our community.

Contents

1. Introduction
2. cNETA/NETA Utility
3. Tokenomics
4. Regulatory Clarity — Malaysia
5. Wallets
6. Final Remarks

1. Introduction

As we prepare to launch on Cardano mainnet, we are excited to announce some developments that have been pursued by our team in silence.

Our affiliate, Aneta Foundation, with a five percent interest in anetaBTC, will be obtaining an official digital asset exchange license from the government of Malaysia. And, as such, all Aneta team projects will fall under Malaysian regulations and laws referred to below, which should provide regulatory clarity for our community.

Additionally, we are excited to announce details of the BTC Fund, which will be used to benefit anetaBTC’s Bitcoin holdings, grow Cardano’s Total Value Locked (TVL), and significantly increase the holdings of the NETA Liquidity Fund for the benefit of long-term NETA and cNETA holders.

Our mainnet launch will allow users to securely lock their BTC on the BTC network, utilizing the anetaBTC platform, and be issued native tokens on the Cardano and Ergo Layer-1 protocols which are the two most decentralized and secure networks in the blockchain space.

These native tokens, cBTC and eBTC, exist exclusively on these two leading blockchain protocols that have been designed and built with decentralization (censorship resistance) and security as core tenets of their protocols.

Holders of cBTC and eBTC will be able to seamlessly participate in the rapidly expanding decentralized platforms emerging on the Cardano and Ergo blockchains providing the ability to users around the world to directly trade, lend, borrow, and earn fees entirely within these two secure blockchain ecosystems.

We believe the ability to transfer some of the immense wealth held by the Bitcoin community, now exceeding half a trillion dollars in total, and with a secure and transparent protocol such as anetaBTC, is an important step in allowing Bitcoin holders to seamlessly participate in what is one of the fastest growing financial sectors in the world today — decentralized finance (DeFi) — and provide the necessary component to all successful DeFi ecosystems, liquidity.

Ultimately, the anetaBTC team is committed to fulfilling our roadmap and creating a secure and open-source protocol that is verifiable, transparently governed by the community, and widely held throughout the world by individuals and institutions in jurisdictions that allow its citizens to participate in the rapidly expanding growth in open-source global finance.

2. cNETA/NETA Utility

There are a combined total of two billion (2,000,000,000) anetaBTC protocol tokens and is hard-capped.

• 1,000,000,000 (50%) of these anetaBTC protocol tokens will be on Cardano as cNETA.
• 1,000,000,000 (50%) of these anetaBTC protocol tokens will be on Ergo as NETA.

Combined, NETA and cNETA tokens represent a 100% governance and revenue-sharing stake for the entire anetaBTC protocol.

Proposed Revenue Model

Each time a user wraps and unwraps BTC to cBTC, there will be a transaction fee of 0.0005 BTC + 0.5% BTC, meaning that all revenue generated by the anetaBTC protocol will be in Bitcoin.

Minus automatically deducted network fees for each transaction that are some of the lowest in the blockchain space (currently less than 1 cent for Ergo and less than $1 for Cardano), fees earned by the anetaBTC protocol will be utilized in the following manner:

• 25% → Converted to cBTC and provide liquidity to cBTC/ADA pair;
• 25% → Converted to cNETA and provide liquidity to cNETA/ADA pair;
• 25% → Converted to ADA and provide liquidity to cBTC/ADA pair;
• 25% → Converted to ADA and provide liquidity to cNETA/ADA pair.

This should result in deeper liquidity for both the cNETA/ADA pair and the cBTC/ADA pair, meaning a stronger and more liquid market for Bitcoin on Cardano.

Over time, the anetaBTC treasury, which holds these assets, should see increased Protocol-owned Liquidity (PoL), and be significant holders of cBTC, ADA, and cNETA — along with any DEX platform tokens that incentivize liquidity for these pairs, such as Minswap and TeddySwap.

We propose that the same model occurs on Ergo.

3. Tokenomics

In total, 70% of all outstanding cNETA/NETA supply is allocated for public distribution. A complete detailed outline can be found below.

1. BTC Fund: 30% (600,000,000 tokens)
2. Team and Advisors: 25% (500,000,000 tokens)
3. Incentives: 14% (280,000,000 tokens)
4. Liquidity ISO: 10% (200,000,000 tokens)
5. NETA Liquidity Fund: 5% (100,000,000 tokens)
6. Aneta Foundation: 5% (100,000,000 tokens)
7. Ergo Development DAO: 5% (100,000,000 tokens)
8. Airdrops: 5% (100,000,000 tokens)
9. Community Team: 1% (20,000,000 tokens)

The token distribution is as follows:

anetaBTC Tokenomics

Supply and Vesting

Supply and Vesting

The Token Generation Event occurred on December 30th, 2021.

Protocol Incentives

When we launch, participation in the anetaBTC protocol will be rewarded.

Those who wrap their BTC to cBTC will earn cNETA rewards for using the protocol, similar to yield farming on a DEX.

The exact mechanics of these incentives will be released in the near future, but these rewards are expected to last at least 4 years, providing ample time to launch all versions of anetaBTC and fulfill our roadmap while consistently providing strong incentives to bring Bitcoin to Cardano.

BTC Fund

The BTC Fund will be used to convert cNETA and NETA, on a highly sporadic basis, into BTC. This BTC will be placed entirely into the NETA Liquidity Fund and will increase the fund’s BTC holdings, bring increased TVL locked to Cardano, and grow the assets of the NETA Liquidity Fund by using cBTC to yield farm opportunities with trusted open-source platforms within the Cardano ecosystem.

The conversion of cNETA and NETA will occur over the span of 4 years.

Our NETA Liquidity Fund currently holds over 2 BTC, 250k ADA, 1 million MIN, 50k ERG, and 100 million cNETA/NETA.

Governance Measures

As we launch on mainnet we’ll provide details on full governance measures to ensure transparency and proper assumptions.

4. Regulatory Clarity — Malaysia

The Aneta Foundation is a non-profit organization based out of Malaysia. The Foundation holds a five percent stake in anetaBTC.

Aneta Digital Holdings (ADH), owned by the Foundation, is a legal entity in Malaysia that is in the process of acquiring a digital exchange license from the government of Malaysia (Centralized Exchange) that is expected to be granted later this year by Q4 2023. This license will be the fifth digital exchange license in the country along with four others, one of which is Luno, a leading global exchange, and another a company owned partly by Binance.

This is particularly beneficial to anetaBTC users as our v1 platform is centralized and custodial.

5. Wallets

• Treasury Wallet (Cardano and Ergo)
• Team + Aneta Foundation (Cardano and Ergo)
• Ergo Development DAO (Ergo)
• NETA Liquidity Fund (Cardano, Cardano, Ergo, Ergo)

6. Final Remarks

As we look forward to our Cardano and Ergo mainnet launch, we are excited to release these updated tokenomics and announce the BTC Fund and the acquisition of a digital exchange license in a jurisdiction that embraces the growth of the blockchain space.

Our growing development team at anetaBTC is hard at work developing crucial infrastructure for the Cardano and Ergo ecosystem. We are on a mission to bring Bitcoin liquidity into Cardano and Ergo in order to contribute to the anticipated DeFi explosion of these two leading blockchains.

We sincerely thank each and every member of our community for their support. We will continue to update our community on development progress as we work towards allowing anyone to efficiently use their Bitcoin and ultimately achieve financial freedom.