Written by: 0xjs@金财经

After Bitcoin L2 Stacks completes the Satoshi Nakamoto upgrade on October 29, 2024, the next major event that the community will pay attention to is the official launch of sBTC.

Bitcoin L2 Labs, an entity under Stacks, recently announced that sBTC is expected to be launched on the mainnet on December 16, 2024.

The launch of sBTC is a key milestone for DeFi and Web3 users towards decentralized, 1:1 Bitcoin-backed assets, unlocking a programmable Bitcoin layer that allows users to bridge BTC to production to generate revenue, obtain on-chain loans, and trade on decentralized exchanges.

Andre Serrano, product manager of Bitcoin L2 Labs, recently published an article introducing the release plan of sBTC.

The following is sBTC’s mainnet launch plan, timeline and incentives

Phase 0: Testnet

The testnet phase focuses on strict Test the core functionality of sBTC, including deposits and signer operations. This phase ensures that the protocol reaches security and performance baselines before mainnet launch. Currently, the sBTC working group is actively recruiting signers and developers to enhance testing efforts and prepare for a seamless transition to the mainnet.

Status: Completed (November 22, 2024)

Phase 1: Mainnet - Bitcoin Deposits

Phase 1 introduces users Features for depositing BTC and minting sBTC, connecting Bitcoin with DeFi. This mainnet launch will focus on onboarding users and providing early access to builders. By starting with just a deposit, the protocol limits its operational complexity and allows rigorous real-world testing of basic components under controlled conditions.

Early depositors will be eligible to participate in the sBTC reward program, providing incentives for sBTC adoption.

Estimated launch date: December 16, 2024

Phase 2: Mainnet - Bitcoin withdrawals

Phase 2 unlocks sBTC withdrawals, allowing Users seamlessly convert sBTC to BTC. During this phase, the initial deposit limit will gradually increase to attract more users.

Estimated timeline: 6-8 weeks after Phase 1

Phase 3: Open signer set + optimization

In this phase, sBTC signers The set will be decentralized beyond the initial 15 community-elected signers. Expanding the signer set will be a gradual process, with the ultimate goal of becoming a fully decentralized, open, permissionless signer set over time.

Estimated timetable: after the second phase

Phase 1 focuses on the deposit function of sBTC. This is the mainnet version with a deposit cap and will provide partners with a significant entry period. Users will be able to deposit their BTC into sBTC and be eligible to receive rewards through the sBTC rewards program.

Bitcoin Deposit Cap

A deposit cap of 1,000 BTC will be implemented during this phase to allow for controlled testing, while ongoing security efforts will be enhanced as the protocol expands. This cap will increase as Phase 1 progresses and transitions to Phase 2.

The deposit cap will be on a first-come, first-served basis, meaning deposits will be accepted in order on the Bitcoin blockchain until the cap is reached. Deposits received after reaching the limit will be withdrawn by the user.

Rewards: Bitcoin in, Bitcoin out

Unlike other incentive programs that rely on opaque points systems and offer alternative tokens as rewards, sBTC gives people what they actually want Something: Bitcoin. Qualifying deposits will be rewarded with sBTC and can be used in DeFi without staking, locking, or other token derivatives. The plan is to keep the user experience simple.

Signers: The Backbone of sBTC

The security and reliability of the sBTC protocol depends on its set of signers, which manages Bitcoin custody and facilitates deposit and withdrawal operations.

The Stacks community recently approved SIP-028, which defines criteria for selecting signers based on factors such as technical expertise, reliability, performance, and decentralization. An initial group of 15 institutional signatories has been selected for Phase 1 to maintain simplicity and reduce operational risk. This group will expand over time as the protocol matures.

As sBTC evolves, the set of signers will transition to a fully decentralized model, further enhancing the protocol’s resiliency.

1. Visit the sBTC dashboard (https://bitcoinismore.org/) : This user-friendly interface will guide users through the deposit process and explore sBTC-enabled apps. The dashboard is currently in private beta and will be available to the public soon.

2. Connect to a non-custodial wallet. Use Leather or Xverse wallets, both designed for seamless integration for Bitcoin and Stacks users.

3. Deposit BTC. Follow the instructions to deposit Bitcoin and receive sBTC in return.

4. Earn rewards. Once your deposit has been processed, head to the rewards website (https://bitcoinismore.org/) to start earning BTC rewards immediately.

5. Deploy sBTC in DeFi. Visit one of the featured sBTC apps to exchange, lend or borrow against on-chain sBTC.