A blockchain developer is set to fork the BRC-20 token standard to introduce decentralized finance capabilities to the Bitcoin network.
A blockchain developer under the alias Mikael.btc, best known as the creator of the BRC-100 token standard, aims to fork BRC-20 to introduce a new protocol designed for decentralized finance (defi) on the Bitcoin (BTC) network.
In an Aug. 9 post on X, the developer detailed plans for the fork, emphasizing that the upgrade would tackle key shortcomings of the BRC-20 standard, such as its lack of programmability, scalability, and defi infrastructure.
Mikael.btc stated that the new protocol will use technologies like Inscriptions, which add metadata to Bitcoin’s sats, and OP_RETURN, a script for storing data in transactions, to enhance Bitcoin’s functionality.
“Every BRC-20 token will be mapped to a BRC-100 token with the same ticker and the same supply. 100% of the new BRC-100 token will be distributed to the holders of the original BRC-20 token, with the exactly same amount as the holdings on BRC-20.”
— Mikael.btc
Following the fork, holders of BRC-20 tokens will automatically receive equivalent assets on the BRC-100 protocol. However, those with BRC-20 tokens held on centralized exchanges will need to wait for the exchanges to distribute the new forked assets.
The push for defi on the Bitcoin network gained traction after Pantera Capital, a crypto venture capital firm, projected that Bitcoin-based defi could attract hundreds of billions in liquidity, potentially matching Ethereum’s defi sector.
