FAQ
◎General
DMD Protocol is a fully immutable, governance-free Bitcoin liquidity and emission protocol on Base (Coinbase's Layer 2). Users lock tBTC to earn DMD tokens through a mechanism called EDAD (Extreme Deflationary Digital Asset Mechanism). To unlock your tBTC, you must burn 100% of the DMD earned from that position — permanently destroying it.
Extreme Deflationary Digital Asset Mechanism. It's a patent-pending system where every DMD token is backed by locked tBTC, and every redemption permanently burns DMD from circulation, making the supply structurally deflationary over time.
Base Mainnet (Chain ID: 8453), an Ethereum Layer 2 network built by Coinbase. Transactions are fast and cost fractions of a cent.
Yes, completely. There are no admin keys, no governance, no upgrades, no emergency controls, and no multisig. Once deployed, the smart contracts run autonomously and permanently. No person or entity can alter the protocol rules.
The DMD Foundation supported the initial development. However, the Foundation does not control the protocol. All monetary rules are immutable and enforced by smart contracts. The Foundation's role is temporary and expected to diminish over time.
The protocol has 160+ automated tests with 100% critical-path coverage. Flash-loan attack simulations, supply invariants, and full burn redemption logic have all been tested and verified. Security rating: A+.
▶Getting Started
A Web3 wallet (MetaMask, Coinbase Wallet, or any browser wallet), some ETH on Base for gas fees (~$5–10 worth), and tBTC tokens to lock.
Two main options: (1) Bridge tBTC from Ethereum mainnet using bridge.base.org, or (2) Buy ETH on Base and swap for tBTC on a DEX like Uniswap or Aerodrome.
tBTC contract on Base: 0x236aa50979D5f3De3Bd1Eeb40E81137F22ab794b
tBTC is a decentralized Bitcoin wrapper from Threshold Network. It provides decentralized custody with threshold security and Ethereum-native settlement. DMD Protocol only accepts tBTC — no WBTC, no synthetic derivatives.
tBTC is decentralized and trustless. WBTC requires custodians and multi-sig management. DMD Protocol's design demands a single, decentralized reserve asset to minimize counterparty risk.
There's no protocol-enforced minimum, but a recommended minimum of 0.01 tBTC is practical given gas costs.
⊕Locking tBTC
Go to the tBTC tab, enter the amount and lock duration (1–60 months), click Approve tBTC first, then Lock tBTC. Confirm both transactions in your wallet.
1 to 60 months. The weight multiplier bonus caps at 24 months (1.48×), so locking beyond 24 months earns the same rate but you won't need to re-lock.
No. Lock duration is permanent once set. Choose carefully. You can use early unlock if you need your tBTC before the lock expires — but a 30-day waiting period applies.
No. Each lock creates a separate position with its own ID, duration, weight, and earned DMD. To lock more, create a new position.
Weight determines your share of DMD emissions. Formula:Weight = Amount × (1 + min(lockMonths, 24) × 0.02)
For example, locking 1 tBTC for 12 months gives weight = 1.24. Higher weight = bigger share of emissions.
| Duration | Multiplier |
|---|---|
| 1 month | 1.02× |
| 12 months | 1.24× |
| 24 months | 1.48× (max) |
◆Earning DMD
DMD is distributed in 7-day epochs. At the end of each epoch, DMD emissions are allocated proportionally based on each user's vested lock weight relative to total system weight.
No. There's a 10-day vesting period for flash loan protection:
Days 0–7: Warmup — 0% weight
Days 7–10: Linear vesting — 0% → 100%
Day 10+: Full weight active
A 7-day emission cycle. At the end of each epoch, DMD emissions become available for claiming. Anyone can finalize epochs — it's a permissionless public action.
It processes pending epochs and calculates the emission distribution. This is a public action — any user can click it. Until an epoch is finalized, users can't claim DMD from that epoch.
Go to the Emissions tab, click Claim All DMD. This claims all your earned DMD from all finalized epochs in a single transaction.
Year 1: 3,600,000 DMD. Emissions decay by 25% annually. Emissions permanently stop when 14.4M DMD is minted.
| Year | Emission |
|---|---|
| 1 | 3,600,000 |
| 2 | 2,700,000 |
| 3 | 2,025,000 |
| 4 | 1,518,750 |
No. The emission pool is fixed and independent of deposits. More deposits means each user's share decreases. Whales cannot inflate total supply.
⊗Redemption & Unlocking
Wait for your lock to expire (or use early unlock), then burn 100% of the DMD earned from that position. Your tBTC is returned in full with zero fees.
No. Zero fees, zero slippage, zero penalties. You get 100% of your locked tBTC back. You only pay the Base network gas fee (typically under $0.50).
You must acquire the required DMD to redeem. Buy it back on a DEX or earn it from other positions. The protocol enforces this rule — there are no exceptions and no governance overrides.
It's permanently destroyed. The burned DMD can never be reminted. This is what makes the protocol structurally deflationary — every redemption reduces total circulating supply forever.
If your lock hasn't expired, you can request early unlock. This immediately removes your weight (you stop earning DMD), starts a 30-day waiting period, and after 30 days you can burn DMD and redeem your tBTC.
You can cancel at any time before redeeming to restore your weight.
◈Tokenomics & Supply
18,000,000 DMD hard cap. Only 14,400,000 (80%) is reachable through emissions. The real circulating supply is variable and permanently deflationary due to burn-to-redeem.
| Allocation | % | Amount |
|---|---|---|
| ◈️ BTC Mining Emissions | 80% | 14,400,000 |
| ◈️ Foundation | 10% | 1,800,000 |
| ◈ Founders | 5% | 900,000 |
| ◈ Developers | 2.5% | 450,000 |
| ◈ Contributors | 2.5% | 450,000 |
Non-emission allocations follow the Diamond Vesting Curve (5% at launch + 95% linear over 7 years).
Every time a user burns DMD to redeem tBTC, that DMD is destroyed forever. Market stress causes more redemptions → accelerated burns. Market optimism causes fewer redemptions → supply freeze. Human behavior becomes the scarcity engine.
◈Security & Technical
No. All contracts are immutable — no proxy contracts, no upgrade paths, no owner privileges. The rules are permanent.
The protocol has a 10-day weight vesting period (7-day warmup + 3-day linear vest). Flash loans cannot gain immediate weight, making them unprofitable to exploit.
A minimal voting system that exists only to manage external tBTC adapter integrations. It has zero authority over monetary rules, supply, emissions, or redemptions. It activates only when circulating supply reaches 30% of max (5.4M DMD) AND there are 10,000+ unique holders.
Your tBTC is held by the immutable BTCReserveVault smart contract. No admin, no governance, and no person has the ability to access, freeze, or move your locked tBTC. Only you can redeem it by burning the required DMD.
◈Wallet & Technical Issues
MetaMask, Coinbase Wallet, and most browser-based Web3 wallets that support Base network.
| Action | Estimated Gas Cost |
|---|---|
| Approvals | ~$0.10–$0.50 |
| Lock tBTC | ~$0.50–$2.00 |
| Claim DMD | ~$0.30–$1.00 |
| Redeem tBTC | ~$0.50–$2.00 |
In MetaMask: Assets → Import tokens → enter 0xc41848d1548a16F87C7e61296A8d2Dc6e9cb07E8. Token name: DMD Protocol, Symbol: DMD, Decimals: 18.
Check you have enough ETH on Base for gas. Verify you're on the correct network (Base Mainnet, Chain ID 8453). For redemptions, ensure you have sufficient DMD balance. If a transaction is stuck, try increasing gas in your wallet.
◎Strategy & Best Practices
Multiple positions give flexibility — you can redeem them independently. One large position maximizes simplicity. Consider splitting if you want to sell some DMD while keeping enough to redeem specific positions.
Be careful. If you sell all your DMD, you won't be able to redeem your tBTC until you buy it back. Always keep enough DMD to cover your redemption requirements, or plan your exit strategy carefully.
Your locked tBTC and earned DMD are tied to your wallet address. If you lose your private key or seed phrase, you lose access permanently. The protocol has no recovery mechanism — self-custody is your responsibility.
◈️Comparisons
Yield farming typically inflates token supply to generate returns. DMD does the opposite — every redemption burns tokens permanently. DMD is not yield farming; it's programmable scarcity.
Bitcoin uses mining halvings but has no reserve lock, no burn-to-redeem, and no market-driven deflation loop. DMD combines a Bitcoin-style halving emission schedule with a mandatory burn mechanism that makes supply permanently decrease.
WBTC is a wrapped Bitcoin requiring custodians, allows redemption without burning, and doesn't enforce scarcity. DMD enforces mandatory burning, is fully decentralized, and becomes scarcer with every redemption.
◈️Legal & Disclaimers
DMD Protocol is fully decentralized software with no admin controls. It is not financial advice. Users should consult their own legal and financial advisors.
Yes, a U.S. patent application has been filed for the EDAD mechanism. The open-source code is freely usable; the economic mechanism is protected from unauthorized commercial replication.
Immutability means no bug fixes post-deployment. DMD liquidity depends on market adoption. tBTC is an external and independent system. Smart contract interactions are irreversible. You are solely responsible for all actions. This is not financial advice.
◈Contract Addresses
| Contract | Address |
|---|---|
| ● BTCReserveVault | 0x4eFDA2509fc24dCCf6Bc82f679463996993B2b4a |
| ◈ EmissionScheduler | 0xB9669c647cC6f753a8a9825F54778f3f172c4017 |
| ◈ MintDistributor | 0xcccD12bCb557FCE8a9e23ECFAd178Ecc663058Da |
| ◆ DMDToken | 0xc41848d1548a16F87C7e61296A8d2Dc6e9cb07E8 |
| ⊘ RedemptionEngine | 0xF86d34387A8bE42e4301C3500C467A57F0358204 |
| ⏳ VestingContract | 0xFcef2017590A4cF73E457535A4077e606dA2Cd9A |
| ◈️ PDC | 0x881752EB314E3E562b411a6EF92f12f0f6B895Ee |
| ₿ tBTC (External) | 0x236aa50979D5f3De3Bd1Eeb40E81137F22ab794b |