What Is Liquid Bit?
Liquid Bit is the first asset on the Liquid Network with a large user base that is completely independent and not pegged to any other assets or currencies. The digital asset utilizes all the benefits of the Liquid Network, so L-BIT transactions are secure, fast, privacy oriented and cheap. These properties combined with its scarcity and the fair distribution scheme make L-BIT to be an outstanding medium of exchange.
Asset Characteristics
Liquid Bits a.k.a. "drips" can be fully settled hassle free within only two minutes. Transactions are confidential which means that the amounts are hidden from all third parties. This information is only known by the sender and the receiver involved in the transaction. Transaction fees can be customized and can be as low as $0.01. [1]
Scarce Supply
The smallest unit of Liquid Bit is one whole L-BIT - also called as a "drip". Drips can not be divided, so it is impossible to send, receive or hold fractional L-BIT units.
As known, every Bitcoin can be divided into 100 million fragments - satoshis -, so the overall Bitcoin supply can be split to 21 000 000 x 100 000 000 pieces. That is 2 100 000 billion or 2 100 trillion units.
The total supply of Liquid Bit is 102.4 billion L-BIT units, which can be divided only into whole units. This means that Liquid Bit is more than 20 507 times scarcer than Bitcoin. [2]
Fair Distribution
The key to build a strong community and a good reputation for Liquid Bit is transparency and the fair distribution scheme.
The issuance of the asset is truly public, so anyone can verify the supply and the fact that no more units can be issued in the future.
The whole supply will be distributed. No founders or team members are allowed to keep themselves even a single drip.
The main part of the distribution process will be achieved in three stages: the airdrop, the presale and the initial exchange offer.
During the presale and the initial exchange offer, the price will be locked to 0.00000001 BTC / L-BIT. The remaining amount will be sold via OTC markets and private sales after the trading has been started.
The Airdrop
The L-BIT airdrop was a huge success. Due to the high demand, all the 400M L-BIT have been claimed by the 31 456 registered members 18 days before the deadline.
The Liquid Bit airdrop was the very first stage of the fair distribution scheme of the total L-BIT supply.
Anybody was able to register to receive some free Liquid Bits to start experiencing with the asset. The reserved amount for the airdrop was 400 million L-BIT units.
Each participant could receive 10 000 L-BIT just by providing its Liquid address, but there was an opportunity to claim an additional 15 000 L-BIT by completing simple tasks, like sharing the website link on social media networks.
The transparency report of the airdrop settlements is made public and can be downloaded here.
The Presale
The L-BIT presale is the second step of the distribution and it has been started on the 1st of August 2020 and it will end on the 30th of September 2020. This is the first opportunity to obtain larger amount of L-BIT with nice presale bonuses. During this event a 2 000 million L-BIT soft cap is applied. We take the security of the distribution very seriously, so there is no automated settlement and no user data or fund will be stored on our online servers at all.
The Initial Exchange Offer
The L-BIT initial exchange offer will be the third step of the distribution process. It will start on the 1st of October 2020 and will end on the 30th of November 2020. The IEO will be hosted at txbit.io, a relatively new, but very promising exchange. They are running a secure and modern platform with quick deposit and withdrawal times and a professional team. During the IEO, the L-BIT/BTC market will operate in buy-only mode, so people can buy L-BIT directly from the order book for a locked price of 0.00000001 BTC per L-BIT. After the initial exchange offer, on the 1st of December 2020, the market will be fully opened, and regular trading will start.
Goals
There are three long term breakthrough goals to achieve:
1, Successful and fair distribution
2, Providing additional liquidity for the Liquid Network
3, Becoming the base asset of Liquid based conversions
Roadmap
Resources
The free and open source Green Wallet or Elements is required to receive, send and hold Liquid Bits.
Frequently Asked Questions
It is primarily created to be a Bitcoin sidechain, but we do believe that it is also very robust and powerful by itself, as a standalone blockchain as well. The most popular Liquid assets like L-BTC, L-USDT and L-CAD are all pegged to another asset or currency.
We do believe that the features of this technology must be utilized by an asset which is truly independent and does not pegged to something else. By adding the scarce asset design and the fair distribution scheme to the equation we created a digital asset that has all the properties we expect from a successful medium of exchange.
The L-BIT asset is not only technically decentralized, the fair distribution scheme ensures that the team members will not keep a large amount for themselves, so L-BIT holders do not need to worry about a massive sudden dump committed by the team.
Transaction fees on the Liquid Network always must be paid in L-BTC, regardless of the asset type you want to send.
In optimal cases where many recipients are included in the same transaction, the fee can be as low as ~0.00000122 L-BTC per recipient. A typical single recipient L-BIT transaction costs roughly ~0.00000393 L-BTC.
People find it more comfortable to express values with whole numbers, because whole numbers are more natural and easier to recognize and evaluate. If you would like to express the total supply with the same precision as Bitcoin has - eight decimal points -, then the whole supply would be equal to 1024.00000000.
That is the reason why L-BIT is more than 20 507 times scarcer than Bitcoin.
Some people find the 1 sat distribution price too low, but we have two important reasons to stick to this price. First, we do not like projects who say "hey, this is my asset and its price is $0.25 because we said so". We think that the price need to be developed by the market to pair a fair and rational value to L-BIT.
The second reason is that we would like to prevent an initial dump when the trading starts. 1 sat is the lowest possible price of an asset traded against BTC, and this technical twist is supposed to protect the interest of the investors who will invest in L-BIT.
If you are subscribed to the @LiquidBitAsset telegram channel, then you will be notified about every important updates in time. In the meantime you can take a look at the roadmap of the project to get familiar with our plans.