Macrostrategy: A Protocol-Owned Bigcoin Treasury Bond
Michael Baylor
Executive Chairman
Bigcoin Maximalist
Abstract
Bigcoin is a virtual mining economy built on the foundations of Bitcoin, where
users acquire onchain miners to produce $ BIG over time. Unbeknownst to many, the
Bigcoin protocol itself generates sustainable fees. As the ecosystem matures, incentive
layers that rewards long-term conviction and active contribution arise.
Macrostrategy introduces a protocol-owned, non-inflationary bond system. Tranches
are created for $ BIG holders to commit their tokens and earn protocol fee derived
yield. These tranches distribute real protocol revenue (ETH, USDC, $ BIG, any other
token) according to commit duration, commitment level, and optional contribution-
based boosts. The mechanism transforms passive holders into aligned stakeholders,
redistributing the protocol’s treasury and thus decentralizing the network further, re-
ducing short-term sell pressure, and anchoring Bigcoin’s long-term economic vision.
No rebases. No farming. No dilution. Reserved for those who commit to the
network’s success.
1 Introduction
The design of Bigcoin is built on the foundational principles of Bitcoin; fixed supply, halven-
ing schedules, and a mining economy. However, it expands the design space by integrating
virtual, in-game mining mechanics as its distribution strategy leading to revenue-generating
protocol activity.
Unlike inflationary yield farming, Macrostrategy builds a system where capital commit-
ment is rewarded directly from real, protocol-generated value. Users who commit their $ BIG
into tranches until the maturity date, signal belief and commitment, while the protocol re-
wards them. This yield structure is merit-based, and non-dilutive.
The goal is simple: Turn believers into bondholders. Turn fees into fuel. Turn commit-
ment into capital.
2 System Overview
Macrostrategy offers a structured staking mechanism where users may commit their $ BIG
to predefined tranches. Each tranche behaves like a protocol-owned bond; defined by fixed
parameters and culminating in yield distribution upon maturity.
1
2.1 Tranche Design
Each tranche Ti is characterized by:
• Maturity Date Mi : the epoch after which rewards are released
• Max Commitment Cap Ci : the total $ BIG that may be committed to the tranche
• Reward Pool Ri : the total amount of protocol fees (can be any token like ETH or
$ BIG) allocated to this tranche
• Commitment Duration: the time between commitment and maturity
Users may join any open tranche by committing an amount of $ BIG, up to the tranche’s
cap Ci .
2.2 Reward Distribution
When a tranche reaches maturity, the rewards allocated to it are distributed to its partici-
pants proportionally to:
1. The amount of $ BIG committed by each user
2. The amount of $ BIG committed to the entire tranche by every user
3. Note, the time entered the tranche is irrelevant, however, the tranche closes when the
cap is hit
Let:
• au = amount of $ BIG committed by user u
• Ti = the tranche in question
• Ci = the total amount of $ BIG committed to tranche Ti at maturity
• Ri = total reward pool (in ETH or $ BIG) allocated to Ti
Then the reward received by user u upon maturity is:
au
ru = · Ri
Ci
Where ru is the user’s share of the reward pool, proportional to their $ BIG commitment.
All commitments must stay in the tranche until maturity date.
2
2.3 Denomination and Tranche Classes
There will be 3 initial tranches:
• ETH and/or USDC tranche: Medium cap, short maturity date, rewards are fully
in ETH and/or USDC.
• ETH and/or UDSC and $ BIG tranche: Medium/High cap, medium maturity
date, rewards are fully in ETH and/or USDC alongside $ BIG.
• $ BIG tranche: High cap, medium/long maturity date, high rewards for long-term
believers fully rewarded in $ BIG.
Each tranche operates independently, with no overlapping liquidity or dilution across
tranches.
3 Design Principles
Macrostrategy is guided by several foundational principles:
• Non-Inflationary Yield: No new $ BIG is minted to pay out rewards. All yield is
sourced from actual protocol fees, ensuring long-term sustainability.
• Commitment-Based Access: Users earn yield by contributing to the health of the
network via time-bound capital commitments.
• Tranche-Based Simplicity: Fixed tranches create predictability and allow easy com-
parison of different commitment options across varying reward pools.
• Protocol-Owned Alignment: Tranches help centralize committed $ BIG under pro-
tocol control, aligning incentives between users and the network itself.
4 Risks and Trade-offs
As with all commitment mechanisms, Macrostrategy carries inherent risks and trade-offs:
• Liquidity Risk: Users cannot access their $ BIG until tranche maturity. Capital is
illiquid during the maturity period.
• Fee Volatility: Rewards are based on actual protocol revenue. In periods of low
activity, fee-derived yield may be reduced, however, it can be compensated from prior
rewards.
• Tranche Saturation: Once a tranche is filled, users must wait for the next tranche
cycle, which may introduce timing risk.
While these risks are inherent to the mechanism, they are transparently presented and
bounded by the tranche architecture.
3
5 Protocol-Owned Liquidity and Treasury Reinforce-
ment
The $ BIG committed to Macrostrategy tranches is held by the protocol during the entire
commitment period. This pool of protocol-owned $ BIG acts as a strategic treasury reserve.
While it is not deployed during the tranche’s lifetime, it serves several long-term functions:
• Reduces circulating supply, strengthening the scarcity and value alignment of
$ BIG
• Consolidates protocol-owned capital to be optionally used for liquidity provision-
ing or reserve-backed products in the future
• Signals long-term belief, as committed capital reflects community conviction in the
protocol’s future
Macrostrategy does not rely on inflationary token emissions to fund rewards. Instead,
it compounds real economic value by redistributing protocol-generated fees to committed
stakeholders.
6 Conclusion
Macrostrategy transforms Bigcoin from a mining-only economy into a bond-capable protocol
increasing the utility for $ BIG. By enabling $ BIG holders to commit tokens in return for
real, non-inflationary yield, the system creates a structured, conviction-based foundation for
protocol sustainability.
This mechanism not only incentivizes long-term belief, but also gradually converts spec-
ulative supply into protocol-aligned capital. As $ BIG earns revenue from its core mining
and network activities, that value is distributed to those most committed to its future.
By adding utility, Macrostrategy is fully aligned with Bigtoshi’s vision; Big-
coin is the product, the mining is just the distribution mechanism.