At anetaBTC, we believe the best organizations innovate and pivot when the time is necessary to increase the chances of long-term success. That time is now.

The rest of this article will propose our changes to the project to position anetaBTC to be the most successful decentralized wrapping protocol on Cardano.

Introduction

As we look toward 2024, we have put together a plan that we believe puts anetaBTC in the best position to succeed.

We are looking forward to this new chapter if approved by the community, and ultimately believe this should drive value for our project long term.

All-in on Cardano and cBTC

Our team has realized that the best chances of success are to completely focus on 1 protocol, instead of doing 2 things in an average manner. We believe the best path forward is to put all focus on Cardano and sunset the Ergo side of the project.

First, we believe Ergo is an incredible blockchain with some of the brightest minds in the blockchain industry. We believe in Ergo and plan to support the ecosystem for years to come. Right now, however, we believe we must focus on Cardano to ensure our project’s success.

This this effect, we’ve considered multiple steps to optimize a smooth transition and ensure NETA holders are fairly treated. They are:

Convert NETA to cNETA in ADA equivalents — We’ve calculated the ADA value of NETA tokens held, and NETA holders will be able to claim cNETA tokens in the exact ADA value of their NETA tokens at the time of writing. For example, if you hold 100 ADA of NETA, you’ll be eligible to claim 100 ADA of cNETA. Values are taken as of December 18th, 2023 at 7:00 PM EST. There are currently about 250M NETA tokens in circulation, which currently equals about 38M cNETA. This 38M cNETA would be distributed from the community fund, which currently holds about 138M cNETA. This would bring the total holdings to 100M cNETA in the NETA liquidity fund.
Airdrop the 36,000 ERG from Staking V2 directly to NETA holders. NETA holders will be airdropped 36,000 ERG instead of having to stake for 1 year. cNETA staking will take place as previously announced here.
Remove liquidity from the NETA/ERGO pair on Spectrum 24 hours after the completion of the governance vote. This means we’ll give people either time to sell their NETA at the market price, or hold their NETA and claim cNETA, within 48 hours. We expect the price of NETA to possibly fluctuate after the release of this writing, but the conversion rate from NETA to cNETA will be fixed at the market price as of December 18th, 2023 at 7:00 PM EST. Of course, any amount of NETA sold won’t be available for a cNETA claim.

From here, we believe it will be far more effective to focus on our vision of creating the most secure and decentralized Bitcoin wrapping protocol on Cardano.

The proposed upcoming vote is scheduled for later this week. The vote is either yes to approve all 3 points, or no and figure out a new path.

This vote will be carried out on December 21st, 2023, and last 72 hours.

We believe this is an opportune time to carry out these decisions as we prepare for 2024 and are also amid a rebrand as we fully focus on Cardano V2 development.

We’ll be hosting a Twitter Space to discuss with our community tomorrow at 17:00 UTC (12:00 EST).

Considerations

Our Ergo code remains open source, and available for anyone to use if they want to secure and maintain a Bitcoin wrapping protocol on Ergo.
NETA holders will be able to both earn their share of the 36,000 ERG and stake cNETA to earn part of the 2 cBTC.

Conclusion

Ultimately we believe these steps will greatly improve the clarity and direction of our project with the ability to focus our resources and development team on a single mission to build the best Bitcoin wrapping protocol in existence.