X @Ignas | DeFi

BTCS Tokenomics Strategy - BTCS implements a "stake-to-earn" campaign, paying dividends in ETH to address mNAV trading below 1 [1] - The "Bividend" offers $0.40/share in ETH, approximately a 93% yield at a $43 share price [1] - Step 1 involves a $005/share ETH Bividend for new buyers, incentivizing immediate purchase [1][4] - Step 2 includes a $035/share Loyalty Payment, requiring shareholders to hold shares with a 'transfer agent' until January 26, 2026 [4] Purpose of Transfer Agent - The transfer agent functions as a staking contract, removing shares from the circulating supply [2] - The official goal is to "protect against market manipulation" by preventing lending to short sellers [2] - The strategy also aims to promote crypto adoption [2] ETH Source and Market Reaction - ETH for dividends comes from BTCS's treasury, holding 70140 ETH valued at $300 million [2] - BTCS initially experienced a price pump upon the announcement, but retraced the gains a day later [2] - The strategy's effectiveness is questionable, as the initial pump was short-lived [2] Industry Implication - BTCS's tokenomic games illustrate potential strategies for DATs when mNAV is less than 1 [3]