If 2022 taught us anything it’s that centralized exchanges are best at exchanging convenience for safety. If one wants to do anything with their Bitcoin, other than hodl, there really aren’t any good solutions that don’t involve handing your Bitcoin to a centralized entity. Not only does this nullify one of Bitcoin’s greatest strengths, but it also opens the user up to unecessary risk. This has to change, and with that in mind we are proud to present a solution:
Nakamoto Options, (Nak-Ops is being built on the Stacks blockchain. We chose Stacks due to its unique consensus mechanism, proof of transfer, which provides the security of Bitcoin while allowing smart contracts to be written on Bitcoin.
Nak-Ops will allow the users to create their own Bitcoin options according to their terms, and trade them in a decentralized manner. If Bitcoin is truly the future of finance, then it stands to reason that Bitcoiners should be able to trade futures without handing their Bitcoin over to a custodian or federation.
The user, let’s call him Jimmy, connects his wallet to the Nakmoto Protocol. He can then create any option that he wants, for the amount of time that he wants, and select the royalty (we will get to that in a minute). The protocol then locks the selected amount of Bitcoin in a DLC escrow contract for the selected duration of time. The protocol then mints the option into an NFT and places it into Jimmy’s wallet. Once Jimmy has the NFT he can list it on any Stacks NFT marketplace, for whatever price he wants.
So for simplicities sake, lets say that the Nakamoto Option is worth 0.1 BTC, listed for sale at $2,800 USD, with a 10% royalty, and set to expire July 2023.
Kim is bullish, and she happens to think that Bitcoin will be worth at least 33k by July (iykyk), so she immediately buys this option from her favorite Stacks NFT marketplace. She now owns the NFT option, Jimmy and the Nak-Ops protocol have split the 10% royalty, and now Kim can wait for the option to mature or resell it.
At the end of the term, the option will either expire and the original 0.1BTC is returned to Jimmy’s wallet, or sent to Kim’s wallet.
This is just the 25,000’ view, future post will go much deeper into the mechanics of the protocol.
Not only does Nak-ops utilize NFTs to create options, but people who want to use Nakamoto Options protocol can also own several different tiers of NFT that will soon be made available for purchase.
The Nakamoto NFTs will give users the opportunity to recieve discounts on royalties based on the tier of NFT they hold. This is in addition to the limited run of 200 OG NFTs that will be sent to the first 200 members of the Discord. So if you aren’t in the Discord yet, well anon, this is your time!
This is just the beginning. If you dig what we are building then I would strongly advise you to check out the website, Twitter, and Discord. Sign up for the Nak-Ops newsletter and be the first to know the latest developments, including the roadmap, whitepaper, and NFT pre-sale event.
Thanks for reading, and don’t forget to subscribe to the newsletter. Until next time, Jack.