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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. Staking reward

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


*After platform full launch, all of the protocol’s wallets and smart contract addresses will be available publicly for transparency and verification.

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