The era of Bitcoin contracts has arrived! TBC builds the foundation, BTF becomes the first leader sample.

The Bitcoin Contract Layer has undergone a critical transformation from concept to implementation. TBC (The Bitcoin Contract), as the native contract foundation of Bitcoin, establishes composability for BTC through a verifiable architecture, evolving it from a store of value asset into a programmable financial infrastructure. BTF (Bitcoin Finance) is the first to complete a liquidity closed loop, utilizing the Snowball protocol to bind net holdings, liquidity, and long-term incentives into a sustainable structural model.

Three Major Structural Challenges of Bitcoin Contract Layer

In the past few years, discussions in the Bitcoin market have been highly focused on surface factors such as price, halving, ETFs, and macro liquidity. However, as the market matures, a more fundamental question is emerging: Does Bitcoin possess sufficient “structural capacity” if it wants to truly participate in the next phase of the on-chain economy?

When discussing structural aspects, the market begins to repeatedly question three issues. First, is the Bitcoin Contract Layer secure and native enough? This involves whether the technical architecture truly inherits the security of Bitcoin, rather than simply building applications on sidechains or cross-chain bridges. Second, can liquidity exist across cycles, rather than relying on short-term incentives? History has repeatedly shown that contract ecosystems without stable liquidity ultimately remain in the conceptual stage. Third, is the incentive model real, verifiable, and sustainable? Short-term incentives can create hype, but cannot transcend cycles.

These issues are not just local technical details, but rather fundamental prerequisites for the establishment of the Bitcoin contract ecosystem. The reason Ethereum was able to establish its hegemony in smart contracts is precisely because it resolved these three structural problems early on: the EVM provides a secure execution environment, protocols like Uniswap establish a perpetual liquidity model, and the Gas fees along with block rewards create sustainable incentives. If Bitcoin wants to share a piece of the pie in the contract domain, it must provide structural solutions of an equal level.

The emergence of TBC is precisely to fill this structural gap. In the TBC ecosystem, Bitcoin is no longer just a passive store of value asset, but begins to possess native contract capabilities, stronger composability, and a scalable architecture aimed at long-term expansion. This means that BTC can be summoned, configured, and integrated into more complex on-chain economic structures without sacrificing security and sovereignty properties. From a more macro perspective, TBC is not about “adding functionality to Bitcoin,” but rather establishing a contract foundation that can support long-term economic activities for Bitcoin. This step determines the boundaries of Bitcoin for the next decade.

How BTF Solves the Liquidity Sustainability Challenge

The real question is: who will provide a cross-period, verifiable, non-one-time liquidity structure for the Bitcoin Contract Layer? This is precisely the core significance of BTF in the TBC ecosystem. In the TBC system, BTF is not an isolated token project; it is more like a structural component that fulfills three key functions: providing a perpetual liquidity foundation for the TBC Contract Layer, establishing a long-term consistent incentive structure for ecosystem participants, and reserving standardized verifiable entry points for future institutional participation.

The snowball protocol adopted by BTF is not designed to create short-term price fluctuations, but rather to bind net holdings, liquidity, and long-term incentives into a sustainably operating structural model. Value is not “pushed up”, but naturally accumulated within the structure. This design logic is fundamentally different from the traditional DeFi “mine, withdraw, sell” model, which relies on external token rewards to attract liquidity; once the rewards stop, liquidity immediately dries up.

The core mechanism of the Snowball protocol is to use users' net Holdings as a measure of liquidity contribution. The more Holdings one has and the longer the time, the higher the weight in the protocol, and the more reward distribution one receives. This design creates the effect of “holding is mining,” but unlike traditional mining, there is no inflation here; the rewards come from the actual transaction fees and contract call fees generated by the protocol. As the ecological activity increases, early holders naturally receive more rewards, forming a positive cycle.

More importantly, it is verifiability. All liquidity data, holdings distribution, and yield allocation of BTF are recorded on-chain, and anyone can verify whether the protocol is running as promised. This transparency is a prerequisite for institutional participation, as institutions cannot accept the black-box model of “trust the team” and can only accept the open system of “verify the code.”

Why BTF has become an irreplaceable ecological leader

In any mature ecosystem, there is a common phenomenon: assets that are the first to solve structural problems often become the long-term core of the ecosystem. In the TBC ecosystem, BTF is the project that first completes a closed loop of liquidity not relying on external subsidies, an incentive model strongly tied to ecological activity, and an operational logic that can be verified and reused in the long term. This makes BTF not just “fast”, but irreplaceable in position.

As the TBC contract ecosystem expands, the role of BTF is more like a value amplifier and stabilizer within this system. When new contract applications are deployed on TBC, they require the liquidity base provided by BTF. As the activity level of the ecosystem rises, BTF holders naturally gain more profits. When the market enters a bear market, the long-term holdings structure of BTF can provide stability, preventing sudden liquidity depletion that could lead to ecosystem collapse.

This design makes BTF the asset with the optimal risk-reward ratio in the TBC ecosystem. It does not need to bear the execution risks of the application layer; it only requires the continuous existence and activity generation of the TBC ecosystem to achieve value accumulation. This “lying down to earn” structured yield is a typical characteristic of leading assets.

Three Major Sources of Irreplaceability

First to complete the liquidity closed loop: Not relying on external subsidies, the incentive model is strongly bound to ecological activity, and the operational logic can be verified and reused for the long term.

Snowball Protocol Establishes First-Mover Advantage: The holdings weight accumulated by early participants is difficult for later entrants to surpass, creating a natural moat.

Structural Component Positioning: Not competing with other projects, but providing infrastructure for the entire ecosystem, similar to Uniswap in the Ethereum ecosystem.