1. Tiered Subscription for iBTC Minting and Margin Management

Description: Offer a subscription service for MMs and counterparties to wrap BTC into iBTC and use it for automated IM/VM workflows on Canton. Tiers are based on total outstanding iBTC (TVL) and mint/redeem frequency, with per-block fees to maximize app rewards.

• Basic Tier: Up to $10M TVL, 20 mints/redeems monthly, $1/block.
• Pro Tier: Up to $50M TVL, 100 mints/redeems monthly, $2/block.
• Subscribers gain access to iBTC’s bridge and a margin management dApp that automates VM cycles (e.g., every 2 hours).
• Share 25-50% of app rewards with subscribers to incentivize usage.

Revenue Streams:

• Subscription fees (direct CC or USDC payments).
• App rewards from per-block activity (boosted by frequent VM adjustments).

Revenue Estimate:

• Blocks: ~6,144 blocks/month (10-minute blocks, ~144/day × 30).
• Basic Tier: 10 subscribers × $1/block × 6,144 blocks = $61,440/month.
• Pro Tier: 5 subscribers × $2/block × 6,144 blocks = $61,440/month.
• App Rewards: Assuming $27.5M/month for 400-500M CC (per Brale’s example), iBTC could target 5-10% of that pool initially (20-50M CC at 5.5¢) = $1.1-2.75M/month, with 25% shared back to users ($275K-687K).
• Total: $124K-2.9M/month, scaling with adoption (20-30 counterparties could double this).

Why It Works: Aligns with Canton’s activity-based rewards, targets MMs’ need for efficient margin automation, and leverages first-mover perks.

Feedback: what if someone mints in $10m worth of ibtc, but then immediately transfers it away. Should we still be charging them per block? We likely won’t be able to charge the receiving party, if we haven’t onboarded them yet. Should we require that we onboard everyone before we allow transfer to the new party?

Should we charge fees on transfer, or movement of token? Seems like an odd way to manage money, need fee to move it. Do app rewards not already work this way?

Featured app rewards during the mint step. Can we not get app rewards on transfer?