BTC ecology sounded the clarion call for a new round of bull market, what did the inscription do right?

Author: Crypto Wei, AC Capital Source: X (formerly Twitter)

I mentioned in August that the new round of bull market will start by a new issuance mechanism, trading mechanism and market-making mechanism to bring stupid money. Looking back now, whether it is the inscription or Friendtech, it confirms this point - don’t be held hostage by technology, narrative, and legitimacy. The essence of the currency circle is assets, and assets are only related to chip distribution, holding costs, transaction costs, and market-making costs. **

Maybe you still look down on the inscription and think it’s a step backwards. But it is undeniable that the clarion call for a new round of the market has been sounded by the BTC ecosystem.

What does the inscription do right?

1. Use existing consensus: BTC consensus is the strongest consensus of crypto and has nothing to do with technological development, so you don’t need to prove anything. It is orders of magnitude easier to build a product on an existing strong consensus than to find consensus on a product

2. Fair Launch Meme Maximization: Every asset has a meme attribute. If the meme is the sum of the technology, narrative, price, team, cultural background, and event of a project, then the most popular in the secondary market must be the fair launch, and there is no one. From the POW era all the way to ICOs and DeFi, retail investors’ quest for a coinage distribution system with equal opportunity to participate (at least theoretically fair) has never changed. Compared with Friendtech and ETH Earth Dog, the inscription has achieved the ultimate in this regard, and it is fixed from the level of default distribution rules (there is no way to operate without a contract). This is something that is not available in the ETH system.

**3. Natural cost of holding: BTC has high fees and is prone to congestion, which is not a bad thing for asset issuance. Failed transactions and the gas fee premium caused by congestion have led to a very high initial holding cost of the inscription, which raises the threshold for smashing orders from the root and increases the feasibility of trading.

4. Low-liquidity market: The market must have a banker to quickly start from scratch, and the first priority of the banker is to minimize the cost of making a market. Here, the inefficient OTC trading market is an advantage: the bank does not need the front-end liquidity lock-in cost like the ether dog, and there is no smart contract, so the market pricing logic is actually centralized, and there is no need to sweep the floor like NFT to pull. At the extreme point, you can visually “pull the plate” since the transaction.

**5. Low development and deployment costs: ** The development cost of forking a set of inscription protocols is not high, not to mention the four-character earth dog that is directly sent. A team worked on the inscription on Alt L1 and got the demo in 5 days. Even if a project is not well run, it can be restarted with a different name and narrative

Therefore, a large number of targets can emerge on the inscription agreement every day, so that the liquidity will not be dispersed. Like ETH earth dogs, users can’t rush with large funds, they can only gamble every day and buy lottery tickets with small funds. Objectively, this increases the stickiness of the funds, allowing $BTC on the protocol to achieve de facto deflation, forming an ICO (split order) moment for $BTC.

Unresolved issues of inscription sitting:

The ROI problem of sitting on the bank: the purpose of making money is to make money, whether it is a vicious rug or a benign community game. However, due to the problem of the launch mechanism, the project party and the retail investors are on the same line in the matter of collecting chips. And because of the existence of robots, the Ethereum earth dog’s mode of quietly launching birds is also not advisable. In the absence of a smart contract, except for the trading market project party that can still charge some service fees, only the miner project party can solve the problem of rush and income by raising the gas and running ahead. A well-known inscription project party contacted me in May to join SUI Ecology, but explicitly refused to make inscriptions in SUI on the grounds that it was not profitable

It is not difficult to understand why the inscription project party began to find a way to dual-chain launch, and even returned to the old way of playing pre-sale. With the deepening of the bull market, there is a high probability that the high-standard fair launch will become more and more out of shape, relying on the old path of centralization, after all, the inscription is the exchange model, and the first service object of the exchange is LP

What have you learned from the development of the inscriptions?

If you want to make a low-liquidity market asset, then you can:

1. Starting from a strong consensus ecosystem, we should strengthen the meme of fair launch and team can’t do evil as much as possible

2. If you want users to hold it for a long time, it will increase the cost of ownership in disguise, and if you want users to play for a long time, you will increase the speed of target emergence. At least one of the two

3. Reduce the cost of pulling orders before the market consensus is formed as much as possible, reduce the demand for front-loaded liquidity, and hold the pricing dominance

4. Save the country through a relatively covert way and absorb chips at low cost, or sell water logic to make a profit

5. The development and operation materials should be reproducible as much as possible, and the opening was successful, with 3 parts of force and 7 points of transportation. The more the operation of the middle platform, the lower the unit cost

In addition, if you want to make an inscription protocol, it is basically indexer+dex+wallet, and the production time cost depends on the status of the specific chain, and it will be audited in another 1 week. If you start planning an imitation now, you need to make sure that the inscription narrative is still popular at least a month and a half.