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BAMK: Pioneering the Nakamoto Dollar on Bitcoinby@mrfireside
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BAMK: Pioneering the Nakamoto Dollar on Bitcoin

by Mr FiresideMay 16th, 2024
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BAMK, short for Bamk of Nakamoto Dollar, aims to create a 1:1 synthetic dollar on the Bitcoin network, using the ticker NUSD (Nakamoto USD) Their project, the NAKADO Protocol, seeks to establish the first Bitcoin Layer 1 synthetic dollar. BAMK was approached by venture capitalists who were ready to invest at a $40 million valuation.
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BAMK•OF•NAKAMOTO•DOLLAR

In a groundbreaking move, new crypto startup BAMK is set to revolutionize the Bitcoin blockchain with the introduction of the Nakamoto Dollar (NUSD), a protocol-agnostic synthetic USD stablecoin. This initiative first launched via the Bitcoin Runes protocol, in what we can assume was a very clever marketing strategy, potentially ushering in a new era of decentralized finance (DeFi) on the Bitcoin network. Here's an in-depth look at BAMK's ambitious project and its potential impact on the market.

The Rise of the Runes Protocol

The Runes protocol enhances Bitcoin's capability by enabling the creation of digital tokens, significantly improving transaction speed and cost-effectiveness. This innovation is akin to what Ethereum achieved with tokenization, leading to an influx of new tokens and capital. With Runes, Bitcoin now has the infrastructure to support similar growth, paving the way for projects like BAMK to deploy via Bitcoin (Note: $BAMK was launched via Bitcoin Runes Protocol, and $NUSD, or similar, while not yet released for minting, will likely be protocol agnostic, think BRC20 potentially).

BAMK and the Nakamoto Dollar

BAMK, short for Bamk of Nakamoto Dollar, aims to create a 1:1 USD synthetic stablecoin on the Bitcoin network, using the ticker $NUSD (Nakamoto USD). Their project, BAMK Protocol or BAMK for short (initially, the NAKADO Protocol), seeks to establish the first Bitcoin Layer 1 synthetic dollar as was first inspired by ideas from crypto visionary Arthur Hayes.

Key Features and Phases of the BAMK Project

  1. Phase 1: Bootstrapping with Ethena:
    • BAMK has developed a proprietary growth protocol to create a synthetic dollar, starting with a native bond token to incentivize total value locked (TVL) on Bitcoin Layer 1.
    • A public mint of the B.O.N.D. token (now $BAMK on exchanges) has been initiated to attract initial liquidity.
  2. Phase 2: Hedging Mechanism:
    • The NUSD stablecoin will be 100% hedged by holding a long spot position in BTC and a short perpetuals position, ensuring stability despite market volatility.
  3. Future Integration:
    • NUSD aims to be protocol-agnostic, and compatible with various token standards and protocols, allowing for broad adoption and integration across platforms. The team behind the project tell us that it is likely NUSD will launch on BRC20 first with a 5-byte ticker. Watch this space!

Strategic Decisions and Market Impact

From their Twitter/X and also voa conversations we have had with the BAMK team, we can see that BAMK was approached by venture capitalists who were ready to invest at a $40 million valuation. However, the team decided to forgo VC funding to maintain independence and foster community involvement. Instead, they minted 21 billion $BAMK tokens to incentivize TVL and engage the degen trading community. In other words, think of this as a grassroots model.

Potential Market Impact

  1. Uncapped Potential for Capital Inflow:
    • The introduction of NUSD on the Bitcoin network holds uncapped potential for capital inflow. Unlike Ethereum-based stablecoins like USDT and USDC, which are capped through banking regulations and restrictions, NUSD aims to operate without these constraints. This could lead to a significant increase in on-chain liquidity and attract substantial capital to the Bitcoin network【24†source】.
  2. Enhanced Bitcoin Utility:
    • Introducing a stablecoin directly on Bitcoin can enhance its utility, making it a more versatile asset for transactions, lending, and other financial services.
    • The synthetic nature of NUSD ensures that it remains stable despite Bitcoin's volatility, providing a reliable medium of exchange and store of value.
  3. Community and Decentralization:
    • BAMK's decision to prioritize community involvement over VC funding aligns with the decentralized ethos of Bitcoin.
    • By incentivizing participation through the $BAMK token, BAMK aims to build a robust and engaged community that supports the project's growth and sustainability.

Challenges

While the potential benefits are significant, there are challenges to consider. The success of NUSD hinges on the effectiveness of the hedging mechanism and the broader adoption of the Runes protocol. Additionally, regulatory scrutiny and market acceptance will play crucial roles in determining the project's long-term viability.

Interpretation

BAMK's initiative to create the Nakamoto Dollar on Bitcoin represents a bold step towards expanding Bitcoin's functionality and utility. By leveraging the Runes protocol, BAMK aims to bring a new level of financial innovation to the Bitcoin network, potentially transforming it into a hub for decentralized finance. As the project progresses, it will be closely watched by the crypto community, eager to see how this ambitious endeavor unfolds.

For more information, visit BAMK's official website and follow their updates on X.


As far as cyrpto projects go, BAMK is about as audacious as they come. If you have been in this space for any amount of time, you will recall in the early days of Bitcoin, the general idea and meme used was that with Bitcoin, you would be your own bank. Fast forward to today and while Bitcoin has given us some amazing properties, we never really did become our own bank.


If BAMK protocol does what it aims to do - you will undoubtedly all become bamksters.