2024.11.18 - 2024.11.24

2024.11.19

Galaxy @willnuelle shared a post explaining the economic mechanism of BitVM: https://x.com/willnuelle/status/1858588368940265607

• The post focuses on the impact of three economic factors on user fees: transaction fees, BTC risk-free interest rates, and operator earnings.

• The conclusion is that due to the challenge period, the staking yield of the operator becomes the primary factor influencing user fees.

• For example, assuming a 14-day challenge period and a 10% annualized staking yield, the user fee would be approximately 0.38%.