GOAT Network, a Bitcoin layer-2 scaling project, announced on Wednesday that users will soon be able to stake Dogecoin (DOGE) to support the security of its upcoming network, offering crypto rewards in return.
Users will be able to accrue rewards in the form of Bitcoin, which is used to pay transaction fees on GOAT Network, as well as GOAT Network’s planned token, the project's Core Contributor and Metis co-founder Kevin Liu told Decrypt in an interview.
“To secure the network, we need some tokens to be staked,” Liu said. “Bitcoin is a natural selection, but our model supports multiple assets.”
The project aims to address Bitcoin’s scalability and yield challenges but faces questions about its technical feasibility and promises of sustainable returns.
GOAT Network’s decision to bring Dogecoin into the fold was part of a months-long process motivated by its overarching mission for crypto’s preeminent asset: offering a sustainable yield on Bitcoin by leveraging it to provide network security, Liu said.
Liu claimed GOAT Network will let users begin locking up their Dogecoin in early December during a so-called pre-mining phase.
A spokesperson for GOAT Network later clarified to Decrypt that the project will begin accepting assets from would-be delegators on Dec. 2 through Bitcoin and Binance’s BNB Chain. This will come with a “Mining Rewards Rate of 30%,” the spokesperson added.
While there are countless projects experimenting with decentralized finance (DeFi) solutions in the Bitcoin space, GOAT Network claims that its so-called decentralized sequencer model is unique.
In short, the project claims that its process for organizing, batching, and executing transactions on the GOAT Network isn’t subject to a centralized entity’s control.
“Instead of the chain’s governing foundation hoarding all operational control and revenue, this model allows for control sharing among several individuals and entities,” according to a statement.
As proof-of-work networks, Bitcoin and Dogecoin don’t use their respective assets to secure the network and validate transactions. Instead, each network relies on power-hungry machines constantly crunching complex calculations to keep them humming along.
Liu said that including Dogecoin as an asset that can be delegated to the yet-to-be-launched network was motivated by Dogecoin’s decentralized nature and $59 billion valuation.
At the same time, Liu acknowledged that tech CEO Elon Musk has been driving a resurgence in Dogecoin’s popularity through social media and a proposed government agency.
When GOAT Network was unveiled this spring, the project claimed that it had 5,000 Bitcoin in commitments from institutions that would operate GOAT Network nodes in a press release. The release also claimed that GOAT Network will launch with a “leading” decentralized exchange, among other decentralized applications in lending and staking.
Prior to GOAT Network, Liu co-founded the Ethereum layer-2 scaling solution Metis. According to DefiLlama, Metis has around $60 million worth of assets locked in smart contracts.
Even though it will take time to see how GOAT Network’s debut this year plays out, the project is eager to tap Dogecoin holders as a source of tokens for securing its network. At the same time, it’s promising back revenue and tokens that have yet to be earned.
Edited by Sebastian Sinclair
