# Bitcoin Production A core component of the protocol is the production of Bitcoin as a result of the community driving the underlying mining power’s operation. The process for handling the Bitcoin produced is as follows: * BTC production is credited by the mining pool to Prosper’s mining pool account as determined by the protocol’s live hashrate amount (after netting off mining pool platform’s standard fee) * Part of the net BTC produced will be liquidated to pay various service providers for hosting services, utilities costs, and other operating expenses * Prosper will be utilizing BTC price-hedging solutions provided by institutional trading partners to ensure stability and visibility of liquidation proceeds * BTC production post-cost / fee is then deposited to a designated BTC wallet address\* held by the protocol with a credible 3rd party custodian * The balance will then enter the protocol’s smart contracts\* which will then be split across the following two pools: 1. [Protocol DAO’s treasury](/protocol-mechanics/treasury-operation.md) 2. Staking reward {% hint style="info" %} For the portion allocated for staking reward distribution, the staking contract handles all calculations and distributes rewards to PROS stakers based on the amount staked {% endhint %} *** *\*After platform full launch, all of the protocol’s wallets and smart contract addresses will be available publicly for transparency and verification.* --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.prosper-fi.com/protocol-mechanics/hashrate-operation/bitcoin-production.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.