Emre Yumlu 
Goat Network (GOATED) is an innovative Bitcoin Layer 2 solution designed to transform Bitcoin from a passive store of value into an active asset generating sustainable yield. While most BTC remains idle in wallets, limiting its yield potential compared to assets like ETH or stablecoins, Goat Network unlocks new opportunities for Bitcoin holders. The SEC’s approval of Bitcoin ETFs in January 2024 has driven institutional adoption, with figures like Michael Saylor advocating for Bitcoin-based products offering low volatility, downside protection, or dividends. Goat Network leverages decentralized sequencers, multi-coin Proof-of-Stake (PoS), BitVM2, and zkVM technologies to provide security and rewards for BTC holders. This article explores Goat Network’s functionality, mechanics, and the opportunities it offers.
What is Goat Network (GOATED)?
Goat Network is a Bitcoin Layer 2 platform enabling secure DeFi integration for Bitcoin, delivering sustainable yield through decentralized sequencers and multi-coin PoS. Key technologies include:
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Decentralized Sequencers: Ensure network integrity and security by sharing ownership with external node operators, reducing single-point-of-failure risks and ensuring 24/7 network uptime.
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Slashability: PoS assets (BTC, DOGE, GOAT tokens) are fully slashable, deterring malicious behavior and incentivizing honest participation.
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BitVM2 and zkVM: Integrate BitVM2 design and proprietary Zero-Knowledge Virtual Machine (zkVM) to maintain privacy, security, and network integrity.
Sustainable BTC Yield: Decentralized sequencers and multi-coin PoS create a market where participants earn sequencer revenues. With BTC as the gas token, sequencer operators are paid in BTC for transaction processing. BTC or Dogecoin holders can share these revenues through PoS validation. Yield-bearing assets like yBTC or yDoge tokenize sequencer revenues, with yBTC decomposable into pBTC (principal) and yToken (yield), creating a Bitcoin yield market for suppliers, hedgers, arbitrageurs, and speculators.
Goat Network aims to be the sustainable yield chain for “People’s Coins”—fully decentralized assets with over $10 billion market cap, 1 million+ addresses, and 3+ years in the market—starting with BTC and DOGE.
Purpose of Goat Network (GOATED)
Goat Network seeks to unlock Bitcoin’s untapped potential, benefiting all BTC holders. With institutional adoption surging post-ETF approvals, Bitcoin’s idle nature limits yield opportunities. Goat Network activates Bitcoin through sequencer revenues and tokenization, creating sustainable returns. Assets like yBTC enhance liquidity and trading opportunities, fostering a BTC-based decentralized financial market with products like stablecoins, synthetic assets, insurance, and derivatives.
How Does Goat Network (GOATED) Work?
Goat Network operates using decentralized sequencers and multi-coin PoS. Sequencers ensure efficient and secure transaction processing, addressing L2 challenges like single-point failures, censorship, and unequal profit distribution through decentralization.
BTC Yield Mechanism:
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Bridge: BTC holders lock Bitcoin on L1 to mint goatBTC on L2.
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Supply: Provide goatBTC to a sequencer via an L2 smart contract, receiving yBTC (via third-party platforms).
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Redemption: Redeem yBTC for goatBTC, or goatBTC for BTC, at any time.
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Rewards: Earn a share of sequencer revenues and yBTC yields (e.g., swap fees from providing liquidity to goatBTC/yBTC pairs on a DEX).
Risks: Locked BTC may be slashed if a sequencer acts maliciously; bridge and smart contract risks exist but are mitigated by BitVM2/zkVM. Goat Network accepts BTCB (BSC-wrapped) and plans Dogecoin mainnet integration by late 2025.
yBTC Tokenization: Sequencer revenues are tokenized into yBTC, which can be decomposed into pBTC (principal) and yToken (yield) with maturities (e.g., 3 months, 6 months, 1 year, or perpetual). yToken holds yields for the period, while pBTC is a discounted principal; at maturity, pBTC can be redeemed for yBTC. This creates a Bitcoin yield market distinct from traditional lending, driven by sequencer revenues.
Positive Feedback Loop: Increased transactions raise gas fees, boosting sequencer profits and enhancing yBTC/yToken appeal. This attracts more participants, driving market activity and reinforcing the cycle. Third-party DeFi products further amplify transactions.
Goat Network (GOATED) Use Cases
Goat Network offers Bitcoin holders:
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Sustainable Yield: BTC/DOGE yields via sequencer staking.
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yBTC Trading: Liquidity and arbitrage with yield-bearing tokens.
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BTC-Based DeFi: Collateral market for stablecoins, synthetic assets, insurance, and derivatives.
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People’s Coins Expansion: Yields for DOGE and other qualifying assets.
Usage Steps:
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Bridge: Lock BTC on L1, mint goatBTC on L2.
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Supply: Provide goatBTC to a sequencer, receive yBTC.
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Manage: Stake or trade yBTC.
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Redeem: Convert yBTC to goatBTC, then to BTC.
Goat Network (GOATED) Tokenomics
Total Supply: 1,000,000,000. Initial Supply: 10.43% at Token Generation Event (TGE).
Distribution:
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Airdrops: 7% for early adopters and community rewards (via snapshots).
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Mining Pool: 39.42%.
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Team/Contributors/Partners: 23%.
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Early Backers: 15.58%.
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Treasury: 15%.
Unlock and Vesting:
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Team & Contributors: 12-month cliff + 18-month linear vesting.
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Pre-Seed: 12-month cliff + 18-month linear vesting, 6% at TGE.
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Seed: 6-month cliff + 12-month linear vesting, 6% at TGE.
Goat Network (GOATED) Investors
Goat Network is backed by OKX Ventures, P2 Ventures (Polygon Ventures), Amber Group, Waterdrip Capital, Crypto.com Capital, Jsquare, Leland Ventures, Contribution Capital, and Metis Foundation.
Goat Network (GOATED) Team
Founded in 2023, Goat Network is led by a team specializing in Bitcoin Layer 2 solutions and yield innovation.
Official Links
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