2024-01-01 2024-12-31

Bitlayer foundation MiCAR White Paper

IN ACCORDANCE WITH

TITLE II OF REGULATION (EU) 2023/1114

Table of Contents

  1. Information about the Person Seeking Admission to Trading
    1. A.1 Name
    2. A.2 Legal Form
    3. A.3 Registered address
    4. A.4 Head office
    5. A.5 Registration Date
    6. A.6 Legal entity identifier
    7. A.7 Another identifier required pursuant to applicable national law
    8. A.8 Contact telephone number
    9. A.9 E-mail address
    10. A.10 Response Time (Days)
    11. A.11 Parent Company
    12. A.12 Members of the Management body
    13. A.13 Business Activity
    14. A.14 Parent Company Business Activity
    15. A.15 Newly Established
    16. A.17 Financial condition since registration
  2. Information about the issuer, if different from the offeror or person seeking admission to trading
    1. B.1 Issuer Information
    2. B.2 Name
    3. B.3 Legal Form
    4. B.4 Registered address
    5. B.5 Head office
    6. B.6 Registration Date
    7. B.7 Legal entity identifier
    8. B.8 Another identifier required pursuant to applicable national law
    9. B.9 Parent Company
    10. B.10 Members of the Management Body
    11. B.11 Business Activity
    12. B.12 Parent Company Business Activity
  3. Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
    1. C.1 Name
    2. C.2 Legal Form
    3. C.3 Registered address
    4. C.4 Head office
    5. C.5 Registration Date
    6. C.6 Legal entity identifier of the operator of the trading platform
    7. C.7 Another identifier required pursuant to applicable national law
    8. C.8 Parent Company
    9. C.9 Reason for Crypto-Asset White Paper Preparation
    10. C.10 Members of the Management body
    11. C.11 Operator Business Activity
    12. C.12 Parent Company Business Activity
    13. C.13 Other persons drawing up the crypto- asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
    14. C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
  4. Information about the Crypto-Asset Project
    1. D.1 Crypto-asset project name
    2. D.2 Crypto-assets name
    3. D.3 Abbreviation
    4. D.4 Crypto-asset project description
    5. D.5 Details of all natural or legal persons involved in the implementation of the crypto-asset project
    6. D.6 Utility Token Classification
    7. D.7 Key Features of Goods/Services for Utility Token Projects
    8. D.8 Plans for the token
    9. D.9 Resource Allocation
    10. D.10 Planned Use of Collected Funds or Crypto-Assets
  5. Information about the Admission to Trading
    1. E.1 Public Offering or Admission to trading
    2. E.2 Reasons for Public Offer or Admission to trading
    3. E.3 Fundraising Target
    4. E.4 Minimum Subscription Goals
    5. E.5 Maximum Subscription Goal
    6. E.6 Oversubscription Acceptance
    7. E.7 Oversubscription Allocation
    8. E.8 Issue Price
    9. E.9 Official currency or any other crypto- assets determining the issue price
    10. E.10 Subscription fee
    11. E.11 Offer Price Determination Method
    12. E.12 Total Number of Offered/Traded Crypto- Assets
    13. E.13 Targeted Holders
    14. E.14 Holder restrictions
    15. E.16 Refund Mechanism
    16. E.17 Refund Timeline
    17. E.18 Offer Phases
    18. E.19 Early Purchase Discount
    19. E.20 Time-limited offer
    20. E.21 Subscription period beginning
    21. E.22 Subscription period end
    22. E.23 Safeguarding Arrangements for Offered Funds/Crypto-Assets
    23. E.24 Payment Methods for Crypto-Asset Purchase
    24. E.25 Value Transfer Methods for Reimbursement
    25. E.26 Right of Withdrawal
    26. E.27 Transfer of Purchased Crypto-Assets
    27. E.28 Transfer Time Schedule
    28. E.29 Purchaser's Technical Requirements
    29. E.30 Crypto-asset service provider (CASP) name
    30. E.31 CASP identifier
    31. E.32 Placement form
    32. E.33 Trading Platforms name
    33. E.34 Trading Platforms Market Identifier Code (MIC)
    34. E.35 Trading Platforms Access
    35. E.36 Involved costs
    36. E.37 Offer Expenses
    37. E.38 Conflicts of Interest
    38. E.39 Applicable law
    39. E.40 Competent court
  6. Information about the Crypto-Assets
    1. F.1 Crypto-Asset Type
    2. F.2 Crypto-Asset Functionality
    3. F.3 Planned Application of Functionalities
    4. F.4 Type of white paper
    5. F.5 The type of submission
    6. F.6 Crypto-Asset Characteristics
    7. F.7 Commercial name or trading name
    8. F.8 Website of the issuer
    9. F.9 Starting date of offer to the public or admission to trading
    10. F.10 Publication date
    11. F.11 Any other services provided by the issuer
    12. F.12 Language or languages of the white paper
    13. F .13 Digital Token Identifier Code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available
    14. F.14 Functionally Fungible Group Digital Token Identifier, where available
    15. F.15 Voluntary data flag
    16. F.16 Personal data flag
    17. F.17 LEI eligibility
    18. F.18 Home Member State
    19. F.19 Host Member States
  7. Information on the rights and obligations attached to the crypto-assets
    1. G.1 Purchaser Rights and Obligations
    2. G.2 Exercise of Rights and obligations
    3. G.3 Conditions for modifications of rights and obligations
    4. G.4 Future Public Offers
    5. G.5 Issuer Retained Crypto-Assets
    6. G.6 Utility Token Classification
    7. G.7 Key Features of Goods/Services of Utility Tokens
    8. G.8 Utility Tokens Redemption
    9. G.9 Non-Trading request
    10. G.10 Crypto-Assets purchase or sale modalities
    11. G.11 Crypto-Assets Transfer Restrictions
    12. G.12 Supply Adjustment Protocols
    13. G.13 Supply Adjustment Mechanisms
    14. G.14 Token Value Protection Schemes
    15. G.15 Token Value Protection Schemes Description
    16. G.16 Compensation Schemes
    17. G.17 Compensation Schemes Description
    18. G.18 Applicable law
    19. G.19 Competent court
  8. Information on the Underlying Technology
    1. H.1 Distributed ledger technology
    2. H.2 Protocols and technical standards
    3. H.3 Technology Used
    4. H.4 Consensus Mechanism
    5. H.5 Incentive Mechanisms and Applicable Fees
    6. H.6 Use of Distributed Ledger Technology
    7. H.7 DLT Functionality Description
    8. H.8 Audit
    9. H.9 Audit outcome
  9. Information on Risks
    1. I.1 Offer-Related Risks
    2. I.2 Issuer-Related Risks
    3. I.3 Crypto-Assets-related Risks
    4. I.4 Project Implementation-Related Risks
    5. I.5 Technology-Related Risks
    6. I.6 Mitigation measures
  10. Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts
    1. S.1 Name
    2. S.2 Relevant legal entity identifier
    3. S.3 Name of the crypto-asset
    4. S.4 Consensus Mechanism
    5. S.5 Incentive Mechanisms and Applicable Fees
    6. S.6 Beginning of the period to which the disclosure relates
    7. S.7 End of the period to which the disclosure relates
    8. S.8 Energy consumption
    9. S.9 Energy consumption sources and methodologies
01. Date of Notification: 2025-08-09

Regulatory Disclosures

02. Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114:
This crypto-asset white paper has not been approved by any competent authority in any Member State of the European Union. The person seeking admission to trading of the crypto-asset is solely responsible for the content of this crypto-asset white paper.
03. Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114
This crypto-asset white paper complies with Title II of Regulation (EU) 2023/1114 and, to the best of the knowledge of the management body of Bitlayer foundation, the information presented in the crypto-asset white paper is fair, clear and not misleading and the crypto-asset white paper makes no omission likely to affect its import.
04. Statement in accordance with Article 6(5), points (a), (b), (c):
The crypto-asset referred to in this white paper may lose its value in part or in full, may not always be transferable and may not be liquid.
05. Statement in accordance with Article 6(5), point (d):
The utility token referred to in this white paper may not be exchangeable against the good or service promised in the crypto-asset white paper, especially in the case of a failure or discontinuation of the crypto-asset project.
06. Statement in accordance with Article 6(5), points (e) and (f):
The crypto-asset referred to in this white paper is not covered by the investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council. The crypto-asset referred to in this white paper is not covered by the deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council.

Summary

07. Warning:
This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto-asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law. This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129 of the European Parliament and of the Council (36) or any other offer document pursuant to Union or national law.
08. Characteristics of the Crypto-Asset
Overview:
BTR is a utility token that serves as the native token of the Bitlayer network, a Bitcoin Layer 2 platform. Token holders have three primary rights and capabilities:

Primary Rights and Capabilities:
- Staking and Node Voting: Holders can stake their BTR tokens to support network security and participate in node voting. This operates through a delegation system where nodes represent stakers by validating transactions and maintaining network security.
- Governance Participation: BTR holders play a central role in on-chain governance, allowing them to shape the network's future. Through voting, holders can influence critical decisions regarding protocol upgrades, fee adjustments, and other key aspects of Bitlayer's development.
- Fee Switch Benefits: Through governance voting, BTR holders can activate and adjust the Fee Switch mechanism, which determines how transaction fees are allocated. When activated, a portion of protocol revenue can be directed toward BTR staker rewards or token buybacks.

Rights Exercise:
These rights can be exercised at any time through supported wallets and platforms. There are no special conditions or restrictions on exercising these rights, and token transfers are unrestricted. The token follows the ERC-20 standard, ensuring broad compatibility with existing blockchain infrastructure.
09. Utility Token Summary
Key Utilities:
- Network Security Participation: Holders can stake tokens to contribute to network security and earn potential rewards
- Governance Rights: Access to voting on protocol changes, upgrades, and key parameters
- Economic Benefits: Potential to receive protocol revenue through the Fee Switch mechanism when activated
- Network Usage: BTR serves as the native token for gas fees and network operations

Token Details:
There are no restrictions on token transferability - BTR can be freely transferred between wallets and traded on supported exchanges. The total supply is fixed at 1,000,000,000 tokens with no adjustment mechanisms.
10. Key Information About the Admission to Trading
Trading Timeline:
The BTR token is planned for admission to trading starting August 27, 2025.

Exchange Partners:
While specific trading platforms are not yet finalized, discussions are ongoing with major exchanges including:
- Bitpanda
- Bitvavo
- Kraken
Trading Access Methods:
Users will be able to access trading through:
- Registration on supported centralized exchanges
- Decentralized exchanges via compatible wallets
- Direct peer-to-peer transfers

Technical Requirements:
There are no special technical requirements beyond standard crypto wallets that support ERC-20 tokens. Trading will be free to access, though normal exchange trading fees and blockchain transaction fees will apply.

Platform Details:
The token will initially launch on the Bitlayer chain with plans to potentially migrate to Ethereum in the future. This ensures compatibility with the broader Ethereum ecosystem while maintaining the token's utility within the Bitlayer network.

A. Information about the Person Seeking Admission to Trading

A.1 Name: Bitlayer Foundation
A.2 Legal Form: N/A
A.3 Registered address: N/A
A.4 Head office: 1 Raffles Place #50-00 Singapore, Singapore, 048616, SG
A.5 Registration Date: 2024-03-11
A.6 Legal entity identifier: No
A.7 Another identifier required pursuant to applicable national law: Singapore
A.8 Contact telephone number: 65 82839087
A.9 E-mail address: [email protected]
A.10 Response Time (Days): 1
A.11 Parent Company: N/A
A.12 Members of the Management body:
Name Business Function Business Address
Guevara Salazar Cristino Board Member Panama
Morales Gracieili Mariana Board Member Panama
Weand Ortiz Carlos Alberto Board Member Panama
A.13 Business Activity: In the last year we have attended and hosted many international conferences, and our founder was invited by top media to do podcasts. These include:

• Bitcoin Nashville: https://x.com/BitlayerLabs/status/1823388320573075858
• Consensus Austin: https://x.com/BitlayerLabs/status/1798422728296321186
• Token2049 Singapore: https://x.com/bitlayerlabs/status/1834991569331798178?s=46
• Bitcoin Amsterdam:
- https://x.com/BitlayerLabs/status/1844951897691894134
- https://x.com/Cassiopeia_ltd/status/1838902703411318985
• Abu Dhabi Financial Week: https://x.com/BitlayerLabs/status/1870688213901209887
• Bitcoin HK: https://youtu.be/sBl7j4bYK3Q?si=49kNbkBdgeca7tjg
A.14 Parent Company Business Activity: N/A
A.15 Newly Established: false
A.17 Financial condition since registration: Since its registration and incorporation on March 14 2024, Bitlayer Labs Ltd has been maintaining its financial records in compliance with BVI law. The most recent unaudited financial statement is for the year-end 2024. Below is the summary of the financial position of Bitlayer Labs Ltd:

2024 Unaudited Financial Statement (in USD)
Liquid assets: 9,514,569
Total assets: 9,614,569
Loan from third parties: 16,112,385
Total equity and liabilities: 9,614,569

Financial Performance: Bitlayer Labs Ltd’s financial performance reflects its early-stage focus on expansion consistent with its mission to advance BitVM, particularly in powering Bitcoin Defi. Its primary financial activities include:
  • Research and Development: Dedicated to the research and development of decentralized solutions powered by BitVM technology.
  • Operations: Maintain strategic engagement with ecosystem stakeholders and support the sustainable, long-term expansion of the BitVM ecosystem.
  • Investment Relationship: Since its incorporation, Bitlayer Labs Ltd. has raised over USD 16 million, reflecting strong financial backing and investor confidence. These funds have been instrumental in advancing the company’s core initiatives. In 2024, the company generated revenue of USD 2,081,706 from BitVM Bridge gas fees. However, significant expenditures—including USD 2,883,905 in BitVM technology development and USD 5,895,423 in administrative costs—resulted in a net loss of USD 6,524,422. The negative financial outcome primarily reflects substantial upfront investments in research and development, which are expected to support long-term growth and innovation.

B. Information about the issuer, if different from the offeror or person seeking admission to trading

B.1 Issuer Information: false, the offeror and entity are the same, so this section is not applicable
B.2 Name: N/A
B.3 Legal Form: N/A
B.4 Registered address: N/A
B.5 Head office: N/A
B.6 Registration Date: N/A
B.7 Legal entity identifier: N/A
B.8 Another identifier required pursuant to applicable national law: N/A
B.9 Parent Company: N/A
B.10 Members of the Management Body: N/A
B.11 Business Activity: N/A
B.12 Parent Company Business Activity: N/A

C. Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114

C.1 Name: N/A, This section is not applicable, as neither the operator of a trading platform nor any other person, apart from the issuer, has drawn up or contributed to the preparation of the crypto-asset white paper.
C.2 Legal Form: N/A
C.3 Registered address: N/A
C.4 Head office: N/A
C.5 Registration Date: N/A
C.6 Legal entity identifier of the operator of the trading platform: N/A
C.7 Another identifier required pursuant to applicable national law: N/A
C.8 Parent Company: N/A
C.9 Reason for Crypto-Asset White Paper Preparation: N/A
C.10 Members of the Management body: N/A
C.11 Operator Business Activity: N/A
C.12 Parent Company Business Activity: N/A
C.13 Other persons drawing up the crypto- asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114: N/A
C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114: N/A

D. Information about the Crypto-Asset Project

D.1 Crypto-asset project name: Bitlayer foundation
D.2 Crypto-assets name: BTR
D.3 Abbreviation: BTR
D.4 Crypto-asset project description: Bitlayer is the first Bitcoin Layer 2 based on Bitcoin finality. Bitlayer provides developers and users with a native Bitcoin Layer 2 environment through its innovative technologies including OpVM, Finality Bridge, and RtEVM. This platform ensures Bitcoin-equivalent security, a trustless cross-chain bridge, and a real-time EVM programming environment.
D.5 Details of all natural or legal persons involved in the implementation of the crypto-asset project:
Name Business Function Business Address
Charlie Yechuan Hu Co-founder Singapore
Kevin Changbin He Co-founder Singapore
D.6 Utility Token Classification: true
D.7 Key Features of Goods/Services for Utility Token Projects:
• Modular & Composable: API based service, plug and play
• Future-proof architecture: Fraud Proof + Validity Proof
• Customizable& upgradable: Open source & auditable
D.8 Plans for the token:
Mainnet-V1
Time: April 2024 Bitlayer Pos the Foundation
• Security model combines PoS and multisig
• Cross-chain Functionality
• 200+ Ecosystem Projects
• $550M+ TVL
• 250K txs/d

Mainnet-V2
TIME: Q1/Q2 2025 Bitlayer Rollup, BitVM Based
• On-chain STF verification
• Trust-Minimized BTC Bridge
• Seamless migration
• 500+ Ecosystem Projects
• $1B+ TVL
• 3M txs/d

Mainnet-V3
TIME: Q4 2025* Bitcoin Finality V2: Validity Proof, Real-time EVM
• 1000+ Ecosystem Projects
• $6B+ TVL
• 6M txs/d
D.9 Resource Allocation:
Infra:
• Chainlink
• Layerzero
• Nansen
• Menson
• Owlto
• Orbiter
• Ominity

Wallet:
• Binance Wallet
• OKX wallet
• Metamask
• Unisat
• Xverse
• Bitget Wallet
• Gate Wallet
• SafePal Wallet
• Trust Wallet

DeFi:
• Avalon Finance
• Curve
• Jasper Valut
• Bitsmiley
• Vanilla
• Rolldex

RWA:
• Zoth
• Credbull
• Allo
and many others.

There are many other ecosystem projects in a wide range of categories which are listed out in our ecosystem leadership board and also our DApp center:
https://www.bitlayer.org/ready-player-one/leaderboard shows current activity of projects that have chosen to deploy on Bitlayer.
https://www.bitlayer.org/ready-player-one/dapps-center shows DApps that have deployed on Bitlayer.

Multiple projects and assets on Bitlayer have been growing quickly. BitSmiley, for example, which is one of our Bitcoin stablecoin protocols recently launched their token this week on Bitlayer with 10X growth since its seed round. There are around 20 projects on Bitlayer that are going to have token generation events in the upcoming 2-3 months. Bitlayer ecosystem projects such as Avalon, Desyn, Lombard, Solv, Vanilla and many others have raised multiple millions of USD from top venture funds in the web3 space, which demonstrates the quality and sophistication of the projects that Bitlayer attracts, as well as the capabilities of Bitlayer to support that level of activity and complexity.
D.10 Planned Use of Collected Funds or Crypto-Assets:
• Team Salary
• Technical infrastucture cost
• Marketing, Events fees
• Security Auditing Fees

E. Information about the Admission to Trading

E.1 Public Offering or Admission to trading: ATTR
E.2 Reasons for Public Offer or Admission to trading: For business operations and allow users to join the governance. Users can become network validators by buying and staking tokens.
E.3 Fundraising Target: N/A
E.4 Minimum Subscription Goals: N/A
E.5 Maximum Subscription Goal: N/A
E.6 Oversubscription Acceptance: false
E.7 Oversubscription Allocation: N/A
E.8 Issue Price: N/A
E.9 Official currency or any other crypto- assets determining the issue price: N/A
E.10 Subscription fee: N/A
E.11 Offer Price Determination Method: N/A
E.12 Total Number of Offered/Traded Crypto- Assets: 1
E.13 Targeted Holders: ALL
E.14 Holder restrictions: N/A
E.16 Refund Mechanism: N/A
E.17 Refund Timeline: N/A
E.18 Offer Phases: N/A
E.19 Early Purchase Discount: N/A
E.20 Time-limited offer: false
E.21 Subscription period beginning: N/A
E.22 Subscription period end: N/A
E.23 Safeguarding Arrangements for Offered Funds/Crypto-Assets: N/A
E.24 Payment Methods for Crypto-Asset Purchase: They can trade directly on centralized exchanges or decentralized exchanges with wallets.
E.25 Value Transfer Methods for Reimbursement: They can transfer through centralized exchange or by wallets.
E.26 Right of Withdrawal: Users can withdrawal assets to any wallets.
E.27 Transfer of Purchased Crypto-Assets: They can transfer through centralized exchange or by wallet.
E.28 Transfer Time Schedule: N/A
E.29 Purchaser's Technical Requirements: There's no requirement for purchasers. It's Erc-20 standard token.
E.30 Crypto-asset service provider (CASP) name: N/A
E.31 CASP identifier: N/A
E.32 Placement form: N/A
E.33 Trading Platforms name: Bitvavo, Kraken, Bitpanda
E.34 Trading Platforms Market Identifier Code (MIC): VAVO, PGSL,
E.35 Trading Platforms Access: They can register accounts on various platforms to trade the asset
E.36 Involved costs: It's free, but they need to pay the trading fee, transactions fees charged by the third party.
E.37 Offer Expenses: N/A
E.38 Conflicts of Interest: No
E.39 Applicable law: Singapore
E.40 Competent court: Singapore

F. Information about the Crypto-Assets

F.1 Crypto-Asset Type: Utility Token
F.2 Crypto-Asset Functionality:
Staking and Node Voting:
BTR holders can stake their tokens to support the network's security and participate in node voting for important decisions. This operates as a delegation mechanism, where nodes represent stakers by providing network security and validating transactions.

Governance:
BTR holders are central to on-chain governance, allowing them to shape the future of the ecosystem. Through governance voting, BTR holders can decide on critical parameters and make significant decisions, such as regarding protocol upgrades, fee adjustments, and other key aspects of Bitlayer's evolution.

Fee Switch:
The Fee Switch mechanism, which can be activated by the affirmative vote of sufficient BTR holders, allows adjustment of how transaction fees are allocated. When the Fee Switch is activated, a portion of the protocol's revenue will be directed towards distributing rewards to BTR stakers or used for BTR buybacks. This flexible mechanism ensures that the ecosystem can adapt and reward its participants while supporting the long-term sustainability and growth of the Bitlayer network.
F.3 Planned Application of Functionalities: The functionalities of the crypto-asset will be available after TGE
F.4 Type of white paper: OTHR
F.5 The type of submission: NEWT
F.6 Crypto-Asset Characteristics: ERC20 on Bitlayer Chain (our own chain) But we will consider migrating to Ethereum.
F.7 Commercial name or trading name: BTR
F.8 Website of the issuer: https://www.bitlayer.org/
F.9 Starting date of offer to the public or admission to trading: 2025-08-27 (tentative)
F.10 Publication date: 2025-08-27
F.11 Any other services provided by the issuer: N/A
F.12 Language or languages of the white paper: English
F.13 Digital Token Identifier Code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available: No
F.14 Functionally Fungible Group Digital Token Identifier, where available: After TGE
F.15 Voluntary data flag: true
F.16 Personal data flag: false
F.17 LEI eligibility: true
F.18 Home Member State: NL
F.19 Host Member States: AT, BE, BG, HR, CY, CZ, DK, EE, FI, FR, DE, EL, HU, IE, IT, LV, LT, LU, MT, PL, PT, RO, SK, SI, ES, SE

G. Information on the rights and obligations attached to the crypto-assets

G.1 Purchaser Rights and Obligations: They can buy or sell the asset at any time.
G.2 Exercise of Rights and obligations: No need
G.3 Conditions for modifications of rights and obligations: No need
G.4 Future Public Offers: TBD
G.5 Issuer Retained Crypto-Assets: 1
G.6 Utility Token Classification: true
G.7 Key Features of Goods/Services of Utility Tokens:
Staking and Node Voting:
BTR holders can stake their tokens to support the network's security and participate in node voting for important decisions. This operates as a delegation mechanism, where nodes represent stakers by providing network security and validating transactions.

Governance:
BTR holders are central to on-chain governance, allowing them to shape the future of the ecosystem. Through governance voting, BTR holders can decide on critical parameters and make significant decisions, such as regarding protocol upgrades, fee adjustments, and other key aspects of Bitlayer's evolution.

Fee Switch:
The Fee Switch mechanism, which can be activated by the affirmative vote of sufficient BTR holders, allows adjustment of how transaction fees are allocated. When the Fee Switch is activated, a portion of the protocol's revenue will be directed towards distributing rewards to BTR stakers or used for BTR buybacks. This flexible mechanism ensures that the ecosystem can adapt and reward its participants while supporting the long-term sustainability and growth of the Bitlayer network.
G.8 Utility Tokens Redemption: Token holders can join ecosystem governance and dividend rights.
G.9 Non-Trading request: true
G.10 Crypto-Assets purchase or sale modalities: N/A
G.11 Crypto-Assets Transfer Restrictions: No
G.12 Supply Adjustment Protocols: false
G.13 Supply Adjustment Mechanisms: N/A
G.14 Token Value Protection Schemes: false
G.15 Token Value Protection Schemes Description: N/A
G.16 Compensation Schemes: false
G.17 Compensation Schemes Description: N/A
G.18 Applicable law:
1. Panamanian Laws:
• The Panama Foundation Law, including all regulations governing the establishment, governance, and operations of foundations in Panama.
• Any relevant regulations regarding the issuance and management of crypto-assets under Panamanian law.

2. European Union Regulations:
• Markets in Crypto-Assets Regulation (MiCAR), applicable to the issuance and services related to crypto-assets within the European Union.
• MiCAR provides the regulatory framework for the issuance, trading, and provision of crypto-asset services in the EU.

3. Fifth Anti-Money Laundering Directive (5AMLD):
• Applicable to crypto-asset service providers (CASPs), this directive requires compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards, especially for activities conducted within the European Union.

4. International Standards:
• Financial Action Task Force (FATF) Guidelines on Virtual Assets and Virtual Asset Service Providers (VASPs), applicable to cross-border transactions and compliance requirements for global operations.
• Relevant financial market regulations, such as FINMA (Swiss Financial Market Supervisory Authority) guidelines and other international regulatory frameworks, may apply depending on the jurisdictions involved in the operations.
G.19 Competent court: Singapore

H. Information on the Underlying Technology

H.1 Distributed ledger technology: Currently it will be released on Bitlayer, evm compatible, and we plan to migrate to Ethereum.
H.2 Protocols and technical standards: It's erc20 standard token.
H.3 Technology Used: All wallets and technology which support Etherum will be working.
H.4 Consensus Mechanism: POSA
H.5 Incentive Mechanisms and Applicable Fees: All interactions on the chain require payment of GAS fees. We will reward users with tokens or points for their on-chain contributions.
H.6 Use of Distributed Ledger Technology: false
H.7 DLT Functionality Description: N/A
H.8 Audit: true
H.9 Audit outcome:
Hacken Reports:
• General Audit: Hacken Audit Summary
• System Contract: System Contracts Audit
• Bridge & getBTC gas v1: Bridge & Gas Audit
• Token Manager & Peg-Token: Peg Tokens Audit

Slowmist Reports:
• Chain Consensus & System Contract: L2 Audit, System Contracts Audit
• Bridge: Bridge Audit 1, Bridge Audit 2
• getBTC gas v1: getBTC Gas Audit
• Peg-Token: Peg-Token Audit

I. Information on Risks

I.1 Offer-Related Risks:
1. Market Risk:
The price of crypto-assets may fluctuate significantly due to market demand, investor sentiment, regulatory developments, and overall market conditions. Such volatility may affect the liquidity and trading volume of the assets.

2. Regulatory Risk:
Regulatory frameworks for crypto-assets are evolving and vary across jurisdictions. There is a risk that new regulations or changes to existing ones could impact the offer or trading of the crypto-assets, including restrictions, compliance costs, or legal challenges.

3. Liquidity Risk:
The ability to trade or liquidate the crypto-assets on the market may be limited, particularly if the market is illiquid or the token is not widely adopted. This could make it difficult to exit positions at favorable prices.

4. Adverse Market Conditions:
Economic downturns, market crashes, or other financial crises could negatively impact the value and trading of crypto-assets, even in the absence of changes in the underlying technology or project fundamentals.

5. Admission Process Risk:
The process of admission to trading could face delays or be halted due to unforeseen circumstances, including legal, regulatory, or technical issues.
I.2 Issuer-Related Risks: N/A
I.3 Crypto-Assets-related Risks:
1. Volatility Risk:
Crypto-assets are known for their extreme price volatility. Sudden fluctuations in value can result in significant losses for holders and investors.

2. Technology and Security Risks:
Crypto-assets rely on blockchain technology, which, while generally secure, can be vulnerable to hacking, fraud, and other cyberattacks. Security vulnerabilities in the code, wallets, or exchanges can result in loss of assets.

3. Regulatory Uncertainty:
The regulatory environment for crypto-assets is still unclear in many jurisdictions. Legal uncertainty regarding their classification, taxation, or the ability to use crypto-assets in certain contexts can present significant risks.

4. Issuer Risk:
The entity issuing the crypto-assets may face financial, legal, or operational difficulties, which could affect the value and stability of the crypto-assets. Additionally, if the issuer is a centralized entity, there may be risks related to trust and governance.

5. Liquidity Risk:
The liquidity of certain crypto-assets may be limited, making it difficult to sell or trade the assets at desired prices. Smaller or less established tokens are especially vulnerable to this risk.

Market Manipulation:
The relatively unregulated nature of the crypto market can expose investors to the risk of market manipulation, such as pump-and-dump schemes or other fraudulent activities that can impact asset prices.
I.4 Project Implementation-Related Risks:
1. Execution Risk:
There is a risk that the project may not be executed according to plan, resulting in delays, cost overruns, or failure to achieve key milestones. This can be particularly relevant for projects with complex or innovative elements, including the development of new crypto-assets or blockchain protocols.

2. Operational Risk:
The foundation or organization behind the project may face challenges in day-to-day operations, including staffing issues, management challenges, or unforeseen operational difficulties.

Funding Risk:
If the project fails to raise sufficient funds or faces challenges in securing additional investment, it may not be able to continue or complete the project as planned. Insufficient funding could lead to delays, scaling back of the project, or project failure.

3. Legal and Compliance Risk:
As regulations surrounding crypto-assets continue to evolve, there is a risk that the project may not fully comply with local or international regulations, leading to potential legal action, fines, or restrictions.

4. Reputation Risk:
Negative publicity, poor execution, or external market factors could damage the reputation of the project, reducing investor confidence and hindering long-term success.

5. Strategic Risk:
The project may fail to meet its strategic objectives or deliver the expected value due to misaligned goals, shifts in market demand, or competition from other projects or technologies.
I.5 Technology-Related Risks:
1. Security Risks:
Cryptographic and blockchain technologies are generally considered secure, but they are not immune to hacking or vulnerabilities. Security breaches can lead to the theft of assets, unauthorized access, or loss of data.

2. Scalability Issues:
Some blockchain technologies may face scalability challenges as the number of transactions or users grows. This could lead to slower transaction speeds, higher costs, or reduced user satisfaction.

3. Software Bugs and Flaws:
The underlying software code used in the technology may contain bugs, vulnerabilities, or design flaws that could lead to malfunctions, unexpected behaviors, or failure of the system.

4. Technology Obsolescence:
Blockchain and crypto-related technologies are rapidly evolving. The technology being used for the project may become outdated or outperformed by newer innovations, posing risks to the platform’s competitiveness and long-term viability.

5. Interoperability Risks:
If the technology does not integrate smoothly with other systems, platforms, or networks, it could limit the utility or adoption of the crypto-assets. Lack of interoperability with other blockchain ecosystems or traditional financial systems could be a major barrier to success.

6. Network Congestion and Downtime:
Network congestion or technical failures in the blockchain network can affect the performance and reliability of the crypto-assets, leading to transaction delays, higher fees, or unavailability of services.

7. Centralization Risk:
If a significant portion of the technology or infrastructure is controlled by a single entity or a small group of participants, it can create centralization risks, such as the potential for censorship, manipulation, or failure due to a single point of failure.
I.6 Mitigation measures:
1. Security Risks:
Regularly audit systems, use strong encryption, and implement multi-signature wallets to protect assets.

2. Scalability Issues:
Adopt Layer-2 solutions and efficient consensus mechanisms to handle high transaction volumes.

3. Software Bugs:
Conduct thorough testing and audits before deployment to minimize errors.

4. Technology Becoming Outdated:
Keep systems updated and design modular architectures for easier upgrades.

5. Interoperability Risks:
Follow industry standards and build bridges to connect with other blockchains.

6. Network Congestion:
Use dynamic fees and redundant systems to prevent delays and downtime.

7. Centralization Risks:
Decentralize governance and nodes to reduce reliance on single points of control.

8. Cryptographic Risks:
Upgrade encryption methods and prepare for quantum-resistant security.

9. Compliance Risks:
Ensure systems comply with regulations and integrate AML/KYC tools.

10. User Errors:
Provide clear instructions, simple interfaces, and recovery options for users.

J. Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts

S.1 Name: Bitlayer Foundation
S.2 Relevant legal entity identifier: No
S.3 Name of the crypto-asset: BTR
S.4 Consensus Mechanism: POSA
S.5 Incentive Mechanisms and Applicable Fees: All interactions on the chain require payment of GAS fees. We will reward users with tokens or points for their on-chain contributions.
S.6 Beginning of the period to which the disclosure relates: 2024-01-31
S.7 End of the period to which the disclosure relates: 2024-12-30
S.8 Energy consumption: 55188 kwh/year
S.9 Energy consumption sources and methodologies: 0.3 * 24 * 365 * 21 = 55188 kwh