Interoperability protocol ZKM has announced plans for a new Bitcoin Layer 2 solution named GOAT Network. It aims to be the first decentralized Bitcoin Layer 2 with shared network ownership.
You've probably never heard of Layer 2 solutions of this kind, and yet it is set to launch in Q3 this year
Kevin Liu, GOAT Network Core Contributor and ZKM co-founder, stated, "GOAT Network's launch of a Bitcoin L2 is a powerful first step in ZKM's quest to unite the fragmented Web3 universe." Liu emphasized their commitment to decentralization and shared ownership.
GOAT Network will employ a decentralized sequencer model. This approach differs from other Bitcoin Layer 2s. Sequencer node operators will secure the network. They will earn yield on their bitcoin and fees for various activities.
The project claims to be unique in its approach. "GOAT Network is the first Bitcoin L2 to share network ownership and fees, by decentralizing its sequencer," the team told The Block. They added that small holders can also participate in earning sustainable yield.
ZKM's proving service will handle the ZK prover side. The team acknowledged that the decentralization of the Proof Network depends on ZKM's progress.
GOAT Network boasts Ethereum Virtual Machine compatibility. This feature enables smart contract functionality. It sets the project apart from Bitcoin's existing Layer 2, the Lightning Network.
The network has secured commitments of 5,000 BTC from five institutional node operators. It plans to launch with seven operators, expanding over time.
The authors claim that yield will come from various sources, including gas fees and mining rewards. So it's going to be a kind of a mixed bag, if you will.
The project will utilize ZKM's Entangled Rollup technology. This provides native security from Bitcoin's Layer 1. GOAT Network aims to become a "Universal Layer 2," integrating with multiple ecosystems.
GOAT Network has outlined its tokenomics. 42% of the GOAT token supply is reserved for mining activities. 6% is allocated for airdrops and 1% for influencers. The total supply will be 1 billion tokens.