VDS+TitanX on the BRC-20 explains the resonance mechanism of OpenPad in detail

In November, the Brc-20 ecosystem exploded again, and related tokens such as ordi, sats and other related tokens skyrocketed, attracting a lot of money and attention from the market. It is worth noting that OpenPad, a new project in the Bitcoin ecosystem, has recently been launched, with more than 20 bitcoins participating in mining in just one day. Mechanically, it's a bit like the VDS and Titan X combo that was all the rage.

OpenPad is an innovative BRC20 ecosystem designed to stimulate demand and increase the value of BTC and drive demand for the ecosystem through game theory mechanisms.

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Openpad mechanism

Resonance Mode – Inverted Pyramid Mining

The term resonance, originally brought by VDS, attracted more than 30,000 bitcoins in 2019. The so-called resonance means that users can use the BTC in the wallet to exchange (resonance) tokens in one direction, and the earlier they participate in the exchange of 1 Bitcoin, the more tokens they will have, and the lower the proportion of participants in the exchange will be.

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OpenPad is the same, the platform token OPNP has a total issuance of 21 million, and each address can be exchanged for up to 0.5 BTC of tokens, and the resonance continues to shrink, reducing the exchange ratio by 10% for every 8 bitcoins. As the number of participants increases, the difficulty of mining increases, and the supply decreases. Therefore, the earlier you participate, the higher the exchange ratio and the lower the cost.

Over time, the cost of minting OPNP gradually increases, which not only protects the intrinsic value of the token, but also incentivizes users to participate and hold the token for the long term, discouraging short-term speculation.

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Staking mechanism

Staking through the official website of OpenPad can earn BTC+OPNP at the same time, and the staking reward is obtained according to the percentage of the total staking share pool.

The staking period is divided into 3 days / 7 days / 14 days / 28 days, and the corresponding annualized rate of return is obtained, the longer the staking time, the more tokens (inscriptions) and BTC users will receive.

When a large number of users mine or buy OPNP from Level 2 to participate in staking, the circulating supply of the market will be greatly reduced and scarcity.

Referral mechanism

Similar to friend.tech, when a user locks up 0.05 BTC for mining, they will receive a 5% commission link. When you lock up 0.2 BTC for mining, you will receive a 10% commission link.

Game consumption

Officially, the game will be launched in the near future, and users can earn BTC rewards by consuming OPNP as an admission ticket. According to the game ranking, and get airdrop rewards (BTC or inscription) on the 3rd, 7th, 30th day.

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OpenPad's dynamic game

OpenPad is essentially a re-evolution of VDS and Titian X, and DeFi mining projects like this with a Ponzi economic model can be understood as a pool with both water inlets and outlets open, and it is necessary to ensure that there is always water in the pool, mainly in three aspects:

1. As much water as possible at the entrance: This means that more participants need to be attracted to enter, i.e., more bitcoins flow into the pool. OpenPad's inverted pyramid mining makes the cost more advantageous for those who participate earlier. The invitation incentive design is like a faucet, allowing people who have already participated to continuously invite more users to participate in the casting.

2. Minimize the amount of water at the outlet: Reducing the outflow of funds is key to keeping the pool water level stable. Unlike TitanX's custom mining time, OpenPad's mining is set to be released in installments over a period of 21 days, ensuring control over the token supply and a predictable inflation rate, which largely reduces the selling pressure in the market in the early stages of the project's launch and avoids premature entry into a death spiral.

3. The pool area is large enough: Increasing the area of the pool is equivalent to increasing the retention time of funds on the platform, and the higher the proportion of pledge mining, the more consumption scenarios, and the internal circulation can be achieved to a certain extent. When the staking rewards are attractive enough (to stimulate buying), most of the circulating OPNP is staked, and some of the tokens can be consumed in the game (to eliminate the bubble), the system can run longer.

If these three aspects are balanced, OpenPad will be better able to keep funds flowing through the system, thus maintaining the health and sustainability of the platform into a positive upward spiral.

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Conclusion

OpenPad's goal is to increase demand, reduce supply, and create scarcity, which drives the value of $BTC up.

• There is room for imagination in the short-term OPNP secondary market price

At present, the Bitcoin ecosystem is extremely hot, and inscription tokens like this with their own innovative mechanism are more likely to be sought after by the market. From the perspective of game theory, the project side also has the motivation to stabilize the secondary price in the early stage, so that there is arbitrage space in the market, so as to attract more users to participate in mining and staking.

• The game of Bitcoin in the OpenPad treasury

When the price of Bitcoin continues to rise, many people in the market will be willing to buy OPNP to stake for the Bitcoin in the treasury. As time goes on, the difficulty increases, and there are fewer and fewer OPNPs that can be minted, and users who do not participate in mining are more likely to buy through secondary buying instead of choosing to mine for 21 days. This will further push the token price to remain at a certain level (provided that the bitcoins in the treasury are effectively distributed normally).

• Three profit models, each according to its needs

1. Level 2 purchase and hold OPNP, 2. Mine OPNP with Bitcoin and release it in installments in 21 days, 3. Hold and stake OPNP to get BTC+OPNP. Each of the three modes has its own advantages and disadvantages, which is also the charm of the multi-party dynamic game model.

As an upgraded version of TitanX on the Bitcoin ecosystem, OpenPad is further optimized on the basis of the former, optimizing the way to control the circulating selling pressure of new token production as much as possible to ensure the supply control of tokens, and introducing a recommendation mechanism to stimulate more user participation. The duration of this zero-sum game is unknown, and it still needs the test of time and the market to see if it can promote the development of decentralized finance in the Bitcoin ecosystem.

*[Disclaimer] The market is risky, and investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. Invest accordingly at your own risk. *