The ongoing crackdown on Bitcoin mining has resulted in a mass exodus of miners from China and a more than 50% drop in hashrate from an all-time high of 197.9 exahash per second (EH / s) on 15.97 EH / s for now.

Bitcoin network hashrate | Source: Glassnode

One token that has been particularly hard hit by the hashrate decline is the Bitcoin Standard Hashrate Token (BTCST), a project that secures the Bitcoin hashrate, with each token representing 0.1 TH / s of bitcoin mining power.

Data from TradingView shows that BTCST has been showing signs of recovery recently, after rising 57% from $ 13.57 on July 18 to $ 27.38 on July 19 as the Bitcoin hashrate began to stabilize and was close to 100 EH / s.

BTCST / USDT. 4 hour chart | Source: TradingView

The three reasons for BTCST’s recent surge are increased revenue due to the decline in the Bitcoin network’s hashrate, the ability to use BTCST for rewards, and an active community governance system that can offset those users who lose money while they are also the liquidity provider for ecosystem

Bitcoin hashrate reverses the process

While the decline in Bitcoin hashrate is viewed as negative, the BTCST ecosystem is actually benefiting as the reduction in mining difficulty translates into higher earnings per token.

Since each token represents 0.1 TH / s Bitcoin mining power, the earning power of each token has increased by 34% due to the decrease in hash power, offering increased rewards to the ecosystem participants.

During the entire #Bitcoin The hashrate has dropped significantly in the last few weeks, the Standard Hashrate Group has maintained a stable hashrate of 150 petahashes.

This means that the total of #BTC we reward #BTCST Stackers daily increased over 34% to secure ATH

– BTCST (@ BTCST2020) 4th July 2021

“While the entire Bitcoin hashrate has dropped significantly in the past few weeks, the Standard Hashrate Group has maintained a stable hashrate of 150 petahashes.

This means that the total amount of Bitcoin that we reward daily with BTCST has increased by more than 34% on ATH! “

Stakers can earn BTC, BTCST, and DOGE

The second reason for the growth of BTCST is that there are more and more opportunities to benefit from using or providing liquidity.

Hashrate standard | Source: Standard Hashrate dApp

As can be seen in the image above, BTCST holders now have the option to use their tokens to earn rewards that are paid out in BTCB, a packaged version of BTC on Binance Smart Chain (BSC), or the native BTCST token .

The platform also offers options for staking or earning Dogecoin (DOGE), shown above as DOGE or Tau DOGE (τDOGE), but at the time of writing, APY is listed at 0%.

Admin voting helps users make up for losses

The third reason for BTCST’s recent strength is the recent launch of STP 14, a one-time compensation system for liquidity providers who have suffered losses as a result of the recent restorative rebase.

The #BTCST Community has passed STP 14: τAsset Liquidity Provider One-Time Compensation Program!

Liquidity providers for partner swaps such as @PancakeSwap those affected by Restorative Rebase will receive a one-time compensation equal to the Tau asset and the affected amount.

– BTCST (@ BTCST2020) July 2, 2021

“The BTCST community has accepted STP 14: One-time compensation program for liquidity providers!

Liquidity providers for counterparty swaps such as PancakeSwap, which are affected by Restorative Rebase, receive a one-off compensation in the amount of the Tau assets and the affected amount. “

Tau assets on the network include τBitcoin and τDOGE and they are mainly used as staking tokens to pay rewards in τDOGE.

The adoption of a new governance proposal shows that the project is trying to respond to negative developments and user losses in the ecosystem, but it is not yet known whether the current rally will gain momentum or not.

Mr. Teacher

According to Cointelegraph

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