Bitcoin introduced a decentralized, scarce digital currency secured by computation, free from intermediaries. Yet, its limitations—slow transactions and rigid programmability—hinder its evolution. We propose Bitcoin 2 (BTC2), a token on the Solana blockchain, preserving Bitcoin's core economic principles while leveraging Solana's high-speed, programmable infrastructure. BTC2 maintains Bitcoin's 21 million supply cap and halving schedule, introduces a fair Dutch auction issuance, and ensures stability through automated liquidity. This system offers a "better Bitcoin" for a programmable world.
Digital currencies promise trustless value transfer, but Bitcoin, while groundbreaking, trades speed and flexibility for security. Solana, a high-throughput blockchain, resolves these trade-offs, processing thousands of transactions per second at minimal cost. Bitcoin 2 (BTC2) unites Bitcoin's hard money ethos—fixed supply, predictable issuance—with Solana's scalability and programmability. By replacing energy-intensive mining with a transparent auction and stabilizing liquidity via decentralized exchange integration, BTC2 delivers a fair, efficient alternative. This paper outlines its design and implementation.
Bitcoin 2 replicates Bitcoin's issuance model:
Total Supply: 21,000,000 BTC2.
Initial Reward: 50 BTC2 per block.
Block Time: 10 minutes (aligned with Bitcoin via Solana's scheduling).
Halving: Every 210,000 blocks (~4 years), reward halves until issuance ceases.
No pre-mine exists. The genesis block launches publicly after a one-month announcement, ensuring equal access. All code is open-source, auditable by the community.
Traditional mining favors hardware concentration. BTC2 replaces this with a smart contract Dutch auction on Solana:
Each block's 50 BTC2 (adjusted post-halving) is offered at Bitcoin's current market price in SOL (e.g., ~450 SOL at $68,000 BTC and $150 SOL).
The price decreases every 5 seconds until a bidder purchases the block.
Bids are executed via Solana's transaction system, transparent and permissionless.
This ensures fairness—anyone with SOL can participate—and ties BTC2's value to market dynamics without centralized control.
Dutch Auction Mechanism
Price (SOL)
^
450 | \ Block Reward: 50 BTC2
| \ Start: BTC Price in SOL
| \ Decrease: Every 5s
| \ End: When bid received
| \
0 |_______\___________>
0s 300s Time
To counter sell pressure, proceeds from each auction are redeployed:
SOL paid for a block is sent to Raydium, a decentralized exchange on Solana.
A smart contract automatically buys BTC2, adding it to a liquidity pool (BTC2/SOL).
This mechanism supports price stability and incentivizes holding over immediate dumping.
Liquidity Stabilization Flow
+----------+ SOL +-------------+
| Bidder |----------->| Dutch |
+----------+ | Auction |
^ +-------------+
| |
| BTC2 | SOL
| v
+----------+ BTC2 +-------------+
| Liquidity|<-----------| Raydium |
| Pool | | DEX |
+----------+ +-------------+
BTC2 inherits Solana's consensus security—proof-of-history and proof-of-stake—offering robust protection against double-spending and Sybil attacks. While less computationally intensive than Bitcoin's proof-of-work, Solana's design has proven resilient at scale. BTC2's smart contracts are minimal, reducing attack surfaces, and fully auditable.
BTC2 operates as a native Solana token, enabling:
Speed: Sub-second confirmations versus Bitcoin's 10-minute average.
Programmability: Smart contract compatibility for DeFi, NFTs, and beyond.
Cost: Fees below $0.01, compared to Bitcoin's variable rates.
Users interact via Solana wallets, with BTC2 transferable as easily as SOL or SPL tokens.
Initial BTC2 pricing emerges from the auction's first block. If Bitcoin trades at 450 SOL and demand is high, early blocks may settle near 5-10 SOL per BTC2. The Raydium buyback creates a floor, but market perception—balancing Bitcoin's brand against BTC2's untested status—will drive volatility. Long-term value hinges on adoption and utility.
The system comprises:
Auction Contract: Executes the Dutch auction, verifiable on-chain.
Liquidity Contract: Manages SOL-to-BTC2 purchases on Raydium.
Token Standard: BTC2 adheres to Solana's SPL token framework.
Launch occurs March 22, 2025, with source code released February 22, 2025, for review. Miners (bidders) require only a Solana wallet and SOL.
Bitcoin 2 merges Bitcoin's scarcity with Solana's agility, offering a decentralized, programmable currency for the future. Its fair launch, auction-based issuance, and liquidity design eliminate pre-mines and insider advantages. While not as battle-tested as Bitcoin, BTC2 trades marginal security for vast utility. We invite the community to critique, contribute, and join this experiment in hard money evolution.