Tokenomics

Total Supply & Distribution

Fixed Total Supply: Hard-capped at 21 trillion BTCY tokens, mirroring Bitcoin’s 21 million cap via micro-token conversion (1 BTC → 1,000,000 BTCY). This ensures BTCY remains scarce in the long run, creating incentive for holding and naturally limiting inflation.

• Bitcoin Conversion Ratio: At launch, 1 BTC is set to equal 1,000,000 BTCY. Hypothetically, converting all 21 million BTC would yield 21 trillion BTCY. If you own 1 BTC, you can claim 1,000,000 BTCY; 0.01 BTC equates to 10,000 BTCY, and so forth. This ties Bitcoin Yay’s value conceptually to Bitcoin’s, and a reserve mechanism backs this by holding actual BTC.

Initial Distribution Breakdown: The allocation of 21 trillion BTCY is strategically planned for ecosystem needs:

• 40% (8.4 Trillion) – Mining Rewards & Ecosystem Incentives. Reserved for distribution via the mining programs (Snatch Gopher free mining, Nugget Gopher paid plans, etc.) and other user participation incentives. This large allocation ensures the community can earn a significant share of the supply over time, fueling user growth and engagement.
• 10% (2.1 Trillion) – Satoshi Nakamoto Legacy Allocation. In tribute to Bitcoin’s creator, earmarked for Satoshi. Practically, these tokens could be locked or even burned to symbolize transfer to Satoshi’s inaccessible wallet. It serves as a narrative bridge between BTC and BTCY, a thoughtful nod to the origins of the project.
• 20% (4.2 Trillion) – Developer & Infrastructure Fund. Held by the project team/Indexx and vested over ~4 years. Funds ongoing development, infrastructure (servers, support), and rewards for core contributors. A vesting schedule prevents the team from flooding the market and aligns their incentives with Bitcoin Yay’s long-term success.
• 15% (3.15 Trillion) – Indexx Treasury (Liquidity & Stability). Managed by Indexx to provide liquidity on exchanges, perform market-making, and support token stability. This treasury will also help back the BTC reserve mechanism (swapping some BTCY for BTC over time to fill reserves). It acts as a buffer to stabilize price and ensure convertibility.
• 10% (2.1 Trillion) – Community & Influencer Incentives. Dedicated to airdrops, rewards, community events, and influencer partnerships.This allocation seeds the initial user base and creates buzz (e.g., free BTCY drops to early adopters, bonuses for social media promotions, etc.). By distributing tokens through community engagement campaigns, Bitcoin Yay kickstarts network effects and public awareness.
• 5% (1.05 Trillion) – Strategic Partnerships & Institutional Adoption. Reserved for key partners or institutional participants. These tokens incentivize collaborations with payment providers, merchants, fintech companies or even NGOs to integrate BTCY. Having a reserve for strategic outreach provides flexibility to foster adoption in larger contexts (for example, rewarding a popular app for accepting BTCY, or encouraging a financial institution to pilot BTCY-based services).

This distribution ensures that a majority of tokens (50% from mining + community programs) end up in the hands of the community. A substantial portion (35%) is initially held by the team/Indexx for development and liquidity but with clear purpose and vesting to mitigate centralization risk. The Satoshi tribute and partnership allocations further align BTCY with the broader crypto narrative and future expansion.

• Circulating Supply Trajectory: Not all 21T will circulate immediately. Only a small fraction enters circulation at launch (e.g., via initial airdrops and exchange liquidity). Mining rewards (the 8.4T allocation) will be released gradually over many years. Other allocations like the Treasury and Dev Fund will also unlock strategically. This controlled release, similar to vesting in many projects, avoids oversupply in the market at launch and supports long-term price stability.

BTCY Price Strategy

Pegged Early Value: During the early adoption phase, BTCY is effectively pegged to a notional value of $0.10 per BTCY via mechanisms on the Indexx platform. For example, on Indexx Exchange, 10 BTCY = 1 IUSD+ (Indexx USD stablecoin) by design, implying 1 BTCY ≈ $0.10. Users can swap BTCY for stablecoins at roughly this rate (less a conversion fee). This provides a value floor for BTCY and gives holders confidence that their BTCY can be converted to a stable value.

Reserve-Backed Stability: To support this peg, Indexx maintains a reserve of stablecoins and Bitcoin. Whenever users convert BTCY to a stablecoin (like IUSD+ or USDC), the converted BTCY is taken out of circulation and the reserve supplies the equivalent stablecoins to the user. Conversely, if users buy BTCY with stablecoins, BTCY from the treasury or reserve is released and stablecoins are added to the reserve. This acts similar to a central bank currency reserve, buffering BTCY’s price against volatility.

Fee Mechanisms: Conversion and transfer fees are used to control token velocity and fund the reserves:

• Converting BTCY to other tokens incurs a fee (e.g., 15% fee when swapping to internal tokens like IUSD+, and up to 20% fee for external stablecoins like USDC/USDT). These steep fees mean if someone dumps BTCY immediately for cash, they lose a significant portion, which deters mass liquidation and incentivizes holding or using BTCY within the ecosystem.
• Similarly, converting to Bitcoin (BTC) has a high fee, reflecting that directly acquiring BTC from BTCY is treated as a form of cashing out. (For example, converting BTCY to BTC might carry a 25% fee.) These percentages can be adjusted via governance, but initially they create friction that slows down speculative flipping of BTCY.
• Collected fees (in stablecoins or BTC) feed back into the system — for instance, a portion may be burned (reducing supply) and the rest added to the reserve. This deflationary aspect and reserve-funding further stabilize the token.

Bitcoin Reserve Model: A portion of various fees and revenues is allocated to continuously purchase Bitcoin for a strategic reserve. This BTC reserve backs the BTCY ecosystem; for example, it enables a future feature where users can swap BTCY for actual BTC at market rates. As BTCY decentralizes over time, this reserve could be placed under community control via smart contracts. The existence of a Bitcoin reserve ties BTCY’s fate to Bitcoin’s success — if Bitcoin’s value rises, BTCY’s backing strengthens, providing holders additional confidence.

Gradual Float: Over time, as BTCY becomes widely held and its utility proven, the project may relax the $0.10 peg to allow BTCY’s market price to float upward. Any such changes would be decided via decentralized governance once the network matures. In the long run, BTCY’s value will be supported by its scarcity (controlled by halving and burns), its utility in the ecosystem, and the underlying reserves, rather than a fixed peg.