A coalition of Bitcoin developers has come together to oversee the governance of the BRC-20 fungible token standard as the Ordinals protocol gains traction in the digital currency landscape. The group, known as the Layer 1 Foundation, recently introduced a new governance structure for BRC-20 in a detailed announcement on social media.
The Layer 1 Foundation (L1F), spearheaded by BRC20 Creator @domodata and his colleagues, is thrilled to unveil the revamped BRC20 governance framework, which includes the appointment of key BRC20 indexers as collaborative partners.
In a significant shift, the responsibility for BRC-20 governance is now shared among prominent BRC-20 indexers such as Hiro, Alex Labs, Oyl Dynamics, Allium Labs, and UTXO Management. The Ordinals aggregator Best in Slot is leading the charge in maintaining the BRC-20 protocol in conjunction with Bitcoin wallet developer Unisat.
Notably, Unisat, previously at odds with Domo in a recent dispute regarding an Ordinals upgrade, clarified that a hard fork was not on the horizon. Domo had raised concerns about the impact of the Jubilee update on BRC-20 token indexing, cautioning against its implementation until thorough testing is conducted.
Looking ahead, Ordinals is poised to play a pivotal role in shaping Bitcoin’s post-halving economy, extending its influence beyond the governance of BRC-20 tokens. With Bitcoin’s fourth halving scheduled for April 19, the event marks a crucial milestone in the cryptocurrency’s evolution. Halvings, occurring every four years, serve to reduce mining rewards and tighten the supply of new Bitcoins, fostering scarcity in the market.
Historically, Bitcoin halvings have triggered price rallies amid sustained demand, a trend likely to continue given the current institutional interest in Bitcoin. Following the launch of eleven Bitcoin ETFs in January, Bitcoin surged to a new all-time high of $72,733.68 before retracing slightly to $72,002 at the time of this update.
Moreover, Ordinals transaction fees are poised to emerge as a key revenue stream for miners, constituting approximately 20% of their earnings. The rise of Bitcoin NFTs has further fueled interest in the ecosystem, with Ordinals NFTs recently surpassing Ethereum NFTs in sales volume, underscoring Bitcoin’s growing appeal in the digital collectibles market.
Beyond Ordinals, Bitcoin’s expanding layer 2 network is instrumental in enhancing the blockchain’s scalability and speed, mirroring the functionality of Ethereum in critical applications. This development underscores Bitcoin’s versatility and adaptability in meeting the evolving demands of the digital landscape, positioning it as a formidable player in the blockchain ecosystem.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
