◈ README · Protocol Reference
DMD Protocolv1.8.8
Immutable Bitcoin Liquidity & Emission Protocol on Base — EDAD / tBTC Only
◎Overview
DMD Protocol is a fully immutable, governance-free protocol that allows users to lock tBTC on Base to earn DMD emissions under the Extreme Deflationary Digital Asset Mechanism (EDAD).
● The Mint → Burn → Unlock Loop
The protocol enforces a strict, irreversible economic loop:
- ⊕ tBTC is locked to earn DMD emissions
- ▼ DMD emitted from a fixed, declining supply schedule
- ⊘ To unlock tBTC: 100% of all earned DMD must be burned
- ∞️ Burned DMD is destroyed permanently — never reminted
⬛ Immutability Guarantee
There are no upgrades, no admin keys, no governance, and no emergency controls. Once deployed, the system operates autonomously forever.⬛Core Properties (EDAD)
Reserve-Locked Minting
DMD is minted only via tBTC locking. No other mechanism creates DMD.
Fixed Emissions
Annual emissions decay by 25%, fully independent of deposit amounts.
Mandatory Full Burn
No partial unlocks. No alternative exits. 100% burn is required.
Market-Driven Deflation
User redemption behavior determines the rate of supply collapse.
Permanent Reduction
Burned DMD can never be reminted. Supply can only decrease.
Patent Pending
EDAD mechanism subject to a pending U.S. patent application.
◆Key Features
- ● Single Asset Only — tBTC on Base, no WBTC, no synthetic derivatives
- ⬛ Strict Immutability — no governance, no upgrades, no multisig, no admin
- ▶ Flash Loan Resistance — 10-day weight vesting period protects the protocol
- ◈️ Time-Weighted Participation — lock multipliers up to 1.48× at 24 months
- ▼ Deflationary Tokenomics — 18M max supply, 14.4M emission cap
- ◆ Single-Transaction Claims — no snapshots required, claim all epochs at once
- ◈ Audit-Grade Testing — 160 comprehensive tests, all passing, 100% critical coverage
◈Tokenomics Summary
18M
Max Supply (hard cap)
14.4M
Emission-Reachable
∞↓
Real Supply (always deflating)
| Allocation | % | Amount (DMD) | Vesting |
|---|---|---|---|
| ◈️ BTC Mining Emissions | 80% | 14,400,000 | EDAD emissions |
| ◈️ Foundation | 10% | 1,800,000 | Diamond Vesting Curve |
| ◈ Founders | 5% | 900,000 | Diamond Vesting Curve |
| ◈ Developers | 2.5% | 450,000 | Diamond Vesting Curve |
| ◈ Contributors | 2.5% | 450,000 | Diamond Vesting Curve |
| Total | 100% | 18,000,000 |
◆ Diamond Vesting Curve
All non-emission allocations: 5% at TGE + 95% linear over 7 years. No cliff. No surprise unlocks.◈️Architecture
◈Core Smart Contracts
| Contract | Role |
|---|---|
BTCReserveVault.sol | ● tBTC locking, positions, weight tracking (checks PDC) |
EmissionScheduler.sol | ◈ Fixed annual emissions with 25% decay |
MintDistributor.sol | ◈ 7-day epoch distribution, single-transaction claims |
RedemptionEngine.sol | ⊘ Enforces full burn-to-redeem |
DMDToken.sol | ◆ ERC-20 with capped supply and public burn |
VestingContract.sol | ⏳ Long-term team & contributor vesting |
ProtocolDefenseConsensus.sol | ◈️ Adapter-only governance (PDC) |
◈Deployed Contracts — Base Mainnet
| Contract | Address |
|---|---|
| ● BTCReserveVault | 0x4eFDA2509fc24dCCf6Bc82f679463996993B2b4a |
| ◈ EmissionScheduler | 0xB9669c647cC6f753a8a9825F54778f3f172c4017 |
| ◈ MintDistributor | 0xcccD12bCb557FCE8a9e23ECFAd178Ecc663058Da |
| ◆ DMDToken | 0xc41848d1548a16F87C7e61296A8d2Dc6e9cb07E8 |
| ⊘ RedemptionEngine | 0xF86d34387A8bE42e4301C3500C467A57F0358204 |
| ⏳ VestingContract | 0xFcef2017590A4cF73E457535A4077e606dA2Cd9A |
| ◈️ PDC | 0x881752EB314E3E562b411a6EF92f12f0f6B895Ee |
| ₿ tBTC (External) | 0x236aa50979D5f3De3Bd1Eeb40E81137F22ab794b |
◈️Protocol Defense Consensus (PDC)
PDC is a minimal voting system that exists only to manage external tBTC adapter integrations. It has zero authority over the monetary core.
PDC CAN
Pause a compromised adapter · Resume a paused adapter · Approve new adapters · Deprecate obsolete adapters
PDC CANNOT
Change emission rates · Modify supply · Move or freeze BTC · Upgrade contracts · Change redemption rules
⊗Activation Conditions
PDC is completely inert until BOTH conditions are met:
| Condition | Threshold |
|---|---|
| ● Circulating Supply | ≥ 30% of MAX_SUPPLY (5.4M DMD) |
| ◈ Unique Holders | ≥ 10,000 addresses |
◈️Voting Parameters
| Parameter | Value |
|---|---|
| Quorum | 60% of circulating supply |
| Approval | 75% of votes cast |
| Voting Period | 14 days |
| Execution Delay | 7 days |
| Cooldown | 30 days |
Voting: 1 DMD = 1 vote, no delegation, votes locked during voting period.
⊘Redemption Rule
The user is required to burn 100% of the DMD minted from that lock position to unlock their tBTC. No partial burns. No governance exceptions.
⏩Early Unlock Option
1
Request
Call requestEarlyUnlock(positionId) — weight removed immediately, stops earning.
2
Wait 30 Days
Cancel anytime with cancelEarlyUnlock(positionId) to restore weight and resume earning.
3
Redeem
Call redeem(positionId) — burn all earned DMD, receive tBTC back.
◈Security Model
▶Flash Loan Protection
| Period | Weight Status |
|---|---|
| Days 0–7 | ⬛ 0% weight — warmup period |
| Days 7–10 | ● Linear vesting 0% → 100% |
| Day 10+ | ◆ Full weight active |
◈️Additional Protections
- CEI pattern enforced throughout all contracts
- Solidity 0.8.x overflow/underflow protection built-in
- MAX_POSITIONS_PER_USER = 100 — prevents gas denial-of-service
- Zero oracle dependency in core logic — no oracle risk
◈Testing & Verification
160+
Automated Tests
100%
Critical Path Coverage
A+
Security Posture
- ◆ Flash-loan attack simulations passed
- ◆ Supply invariants verified
- ◆ Full burn redemption logic tested
- ◆ Zero-weight epoch handling verified
◈Version 1.8.8 Changes
◆Simplified Claiming (No Snapshots)
- Removed snapshot requirement for claiming DMD
- Users can now claim all epochs in a single transaction
- 10-day vesting period provides sufficient late-joiner attack protection
◈️PDC Activation Simplified
- Removed 3-year time lock requirement
- Activation now based on supply (30%) + holders (10k) only
- Enables faster community governance when decentralization is achieved
◈Gas Optimizations
- Removed unused error definitions
- Removed redundant storage mappings in DMDToken
- Removed legacy function signatures
⚙️Version Information
| Parameter | Value |
|---|---|
| Protocol Version | 1.8.8 |
| Solidity | ^0.8.20 |
| Network | Base Mainnet |
| Upgradeability | None |
◈️DMD Foundation
The DMD Foundation is a formal early community supporting the initial development and understanding of the DMD Protocol. The Foundation does not control or govern the protocol — all monetary rules are immutable and enforced by smart contracts.
⬛ Foundation Scope
- Supports open discussion, documentation, and community education
- Encourages accurate, non-misleading understanding of the protocol
- Conducts preparatory research on alternative BTC connectivity as contingency only
The Foundation does not manage markets, influence price, or provide investment advice. Its role is temporary by design.
◈️Intellectual Property Notice
◈️ Patent Pending
The Extreme Deflationary Digital Asset Mechanism (EDAD) implemented by DMD Protocol is subject to a pending U.S. patent application.Open-source code remains freely usable; the underlying economic mechanism is protected against unauthorized commercial replication.