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Rob Hamilton 129d ago
I have now fully open sourced the code which creates this on-chain BIP-444 futures contract! The contract starts with an atomic deposit into the contract address of 1 BTC each (to make sure both parties put in the same amount into the contract address). Context: BIP-444 makes the use of OP_IF & OP_NOTIF consensus INVALID upon activation. The contract is built as follows: The taproot address uses the NUMS point as described in BIP341, to provably show the key path is not active. We have two parties, a "YES" (444 activates) and "NO" (444 does NOT activate). YES and NO for short. The first leaf is a 2 of 2 multisig of both parties. This exists to be able to self send the UTXO AFTER BIP 444 activates. This is because BIP-444 just added a clause that UTXOs created before activation will NOT have the BIP-444 consensus rules applied to them. This self send removes that exception. The second leaf: has 2 ways you can spend with it, a 2 of 2 (YES and NO) multisig, just like the first leaf OR the NO party, with a time lock which is LESS THAN the third tap leaf. This is important because it uses OP_NOTIF The Third Leaf: The YES party can spend, after a time lock AFTER the second leaf. The order of the timelocks is important. If BIP-444 activates, the spending condition that can spend before you will be consensus invalid, so it doesn't matter if you believe 444 activates. So to summarize: - If BIP-444 DOES activate, the party who believes it will be able to use the second tap leaf to get 2 BTC out. - If BIP-444 DOES NOT activate, the party who believes that will use the third tap leaf to get 2 BTC out. Since each side is highly confident in their position, the fair market price is a 1:1 ratio, implying 50% likelihood. With 85 days until activation, this contract as written gives you an implied ~430% APY on your bitcoin! The risk is being incorrect on your opinion of BIP-444 activating. You could modify the collateral each side puts up to get different implied odds of the futures contract as well. Github: https://github.com/Rob1Ham/BIP-444-Futures Address: https://mempool.space/signet/address/tb1p07flh4waghmkeep0… Anyone who wants to take the BIP-444 WILL activate side, let me know! The Author of the BIP has agreed to this, I have already asked for a larger bet size beyond the 1 BTC I initially proposed, but I have more!
💬 7 replies

Replies (7)

Rob Hamilton 128d ago
Brother - the gambling is forking off the network
0000 sats
James A Lewis128d ago
Thought I was going to learn a totally new Bitcoin feature, then I realized the guy just invented betting on BIPs 😂
0000 sats
Rob Hamilton 128d ago
How about both?! 😂
0000 sats
awayslice128d ago
A duel perhaps.
0000 sats
Rob Hamilton 128d ago
Nope. For those of you newer to Bitcoin, the last time there was a contentious fork, a futures market in 2017 was put up by Bitfinex.
0000 sats
Luke Dashjr126d ago
Liar
0000 sats
Rob Hamilton 126d ago
No u
0000 sats