TOPRARE white paper

V2.2

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1.The Development of NFT Markets

1.1 The Value of NFTs

Digital art, referring to works created through electronic devices, differs significantly from traditional art due to its dynamic expression and reliance on data as its primary medium. While digital art's data-centric nature facilitates easy replication and distribution, it lacks inherent asset attributes. This unique characteristic underscores the primary distinction between digital and traditional art business models: the former faces challenges in trading the physicality of the artworks.

NFTs exhibit traits that make them exceptionally suitable as a medium for digital art. By associating with the corresponding files of digital art pieces, NFTs evolve into the tangible essence for digital art transactions. Presently, the market witnesses a novel trading paradigm, where NFTs are regarded as the quintessence of digital art during transactions. In such exchanges, NFTs function not only as conduits for copyright and ownership transactions but also as distinctive links connecting artists with collectors. Artists acknowledge NFTs as the embodiment of their creative output.

1.2 The Current Landscape of NFT Development

1.2.1 Regulatory Landscape

In April 2023, the Web 3.0 project team of Japan's ruling party unveiled a white paper outlining recommendations to catalyze the development of the country's crypto industry. This initiative is integral to Prime Minister Fumio Kishida's push for the "Cool Japan" technology strategy. The white paper propounds regulatory initiatives encompassing all aspects of Web 3.0, ranging from non-fungible tokens (NFTs) to decentralized autonomous organizations (DAOs).

In June 2022, bipartisan U.S. lawmakers jointly presented the "Responsible Financial Innovation Act" (RFIA) to Congress. This legislation aims to establish a comprehensive regulatory framework facilitating the evolution of the cryptocurrency industry. The bill standardizes key concepts pertinent to cryptographic digital assets, demonstrating substantial relevance to NFT characteristics such as non-fungibility, uniqueness, and tamper resistance.

On April 22, 2022, the UK High Court rendered a landmark judgment in the case of Lavinia Deborah Osbourne v. (1) Persons Unknown (2) Ozone Networks Inc. trading as Opensea. This lawsuit marked the UK's inaugural legal decision concerning NFTs, affirming the property nature of NFTs and their eligibility for protection and remedies under UK law.

On October 21, 2022, the Singapore High Court disclosed its rationale in the case of Janesh s/o Rajkumar v Unknown Person ("CHEFPIERRE") SGHC 264, involving an interim injunction issued in early May. This verdict represents the first documented decision in Asia safeguarding non-fungible tokens.

In summary, as asset categories evolve, markets develop, and legal frameworks progress, the recognition of NFTs extends beyond legal classification. Issues such as the rights and obligations among NFT stakeholders, copyright ownership in transactions, infringement, and secondary transactions are progressively gaining acknowledgment in major global markets.

1.2.2 Economic Aspect

In the first quarter of 2021, the NFT market exhibited remarkable activity, boasting over 140,000 active wallets and 70,000 buyers. The transaction volume surged to 131 times that of the previous year's first quarter and 20 times that of the fourth quarter of 2020, showcasing an exponential growth trajectory across the entire industry. This surge in growth is paralleled by a substantial increase in community engagement.

Between 2021 and 2023, the NFT ecosystem minted Ethereum-based NFTs with a cumulative value of $6.5 billion. During this period, approximately $1.5 billion was generated through royalties and market fees, underlining the economic significance of the NFT market.

USD Spent on NFTS

1.2.3 Technical Aspect

Blockchain-based NFTs fundamentally provide a unique identifier for digital assets, facilitating cross-border settlement transactions and mapping non-fungible digital assets onto the blockchain. This process enables the exchange of value, and the authenticity, ownership attributes, and transferability of NFTs collectively contribute to their intrinsic value.

The year 2023 witnessed a surge in interest in inscriptions on the Bitcoin blockchain, prompting major public blockchains to actively pursue inscription integration. This trend led to the emergence of various protocols akin to ERC-20 and Ordinals. The introduction of inscriptions on the Bitcoin blockchain has significantly heightened the attention on NFTs, and it is anticipated that in the future market, NFTs within the Bitcoin ecosystem will shine even brighter than those on the Ethereum platform.

2. Development Status of the Bitcoin Ecosystem

On the Bitcoin blockchain, BRC20 and Ordinals are not just sequences of code; they represent pioneers of innovation, heralding a new era of decentralized wealth.

2.1 Ordinals

NFTs, serving as cryptographic tokens representing unique digital or physical assets, possess distinctiveness and irreplaceability on the blockchain. While NFTs have flourished for years on smart contract platforms like Ethereum, the earliest and most secure blockchain, Bitcoin, has faced limited development and application of NFTs due to the absence of native smart contract functionality and high transaction fees.

Addressing this challenge, the Ordinals protocol was officially launched on December 14, 2022. Leveraging the technical features of Segregated Witness (SegWit) and Taproot on the Bitcoin network (which reduce transaction data size, accelerating transactions, enhancing scalability, and reducing fees), Ordinals enables the direct minting, transfer, and burning of NFTs on the Bitcoin blockchain. The Ordinals protocol operates without any centralization or involvement of trusted parties, without relying on any Layer 2 or side-chain solutions, fully adhering to the rules and security of the Bitcoin network itself.

The Ordinals NFT protocol for Bitcoin achieved a significant milestone on May 10, with over 5 million inscriptions minted, resulting in a total fee of approximately 213.1 BTC. ORD, an open-source software, can run on any Bitcoin full node and tracks individual Satoshis based on the "ordinal theory," assigning a unique identifier to everyone on the Bitcoin network. Satoshis ("sats") are the smallest units in the Bitcoin network, with 1 Bitcoin equaling 100,000,000 sats. The ordinal theory ensures a unique identifier for everyone on the Bitcoin network. Moreover, these individual sats can be "inscribed" with arbitrary content such as text, images, or videos to create "inscriptions," equivalent to native digital artifacts or NFTs on Bitcoin.

As of December 4, 2023, the Bitcoin NFT market has seen a recent 30-day transaction volume of $371 million, nearly on par with Ethereum's recent 30-day NFT transaction volume of $387 million.

2.2 Atominals

The Atomicals protocol, launched on September 17, is a straightforward yet versatile protocol designed for the creation, transfer, and updating of digital objects (traditionally referred to as NFTs) on UTXO blockchains such as Bitcoin. Atomical represents an organizational method for creating, transferring, and updating digital objects, essentially constituting a digital ownership chain defined by some simple rules.

Compared to the Ordinals protocol, Atomicals boasts a more intricate design, incorporating modules such as tokens, NFTs, domains, containers, and more. This integration provides developers and users with a variety of commonly used functionalities. Since its launch on September 17, the protocol has garnered significant attention from developers and users alike. It has been integrated into wallets, browsers, minting platforms, domain services, and various tools. The minting activity has reached tens of thousands, and the protocol continues to experience rapid growth.

2.3 Bitcoin Ecosystem

Bitcoin, serving as the digital gold standard of cryptocurrencies, has been lagging behind other public chain ecosystems in its ability to handle complex, Turing-complete smart contracts. In order to overcome these limitations, innovative developers have created protocols such as BitVM, Ordinals, and Atomicals, representing diverse directions of technological innovation and expansion. These protocols have brought new possibilities and applications to Bitcoin, attracting a more diverse community.

In addition to the Ordinals and Atomicals protocols mentioned earlier, we can understand the vibrancy of the Bitcoin ecosystem through the following asset issuance protocols and scalability solutions.

Runes Protocol:

Runes Protocol is a UTXO-based model on Bitcoin, managing and transferring fungible tokens through simple tuples (ID, OUTPUT, AMOUNT) and OP_RETURN operations. Its key features include simplicity, the ability to support operations without additional off-chain data or native tokens, optimization of on-chain data usage, and improved user experience.

Unique Advantages of Runes Protocol:

• Based on UTXO Model: Integrates closely with Bitcoin's existing UTXO model, enhancing compatibility and seamless integration with Bitcoin itself.

• Simplified Operations: The protocol utilizes a straightforward (ID, OUTPUT, AMOUNT) tuple mechanism, making token creation, transfer, and distribution intuitive.

• User-Friendly: Committed to simplifying user experience, reducing reliance on complex operations, making it easier for users to understand and use.

• Transparency and Security: All operations are visible on the chain, providing higher transparency. The burning mechanism also ensures the protocol's security.

PIPE Protocol:

Inspired by the Runes Protocol and Ordinals-based BRC-20 standard, the PIPE Protocol is developed by Benny, combining the advantages of both protocol standards. PIPE Protocol offers three main functions: Deploy, Mint, and Transfer (DMT), enabling assets under the PIPE Protocol to be created, distributed, and transferred within the Bitcoin network. In addition to fungible tokens, the PIPE Protocol provides a complete data structure and standard for non-fungible tokens.

Unique Advantages of PIPE Protocol:

• Compatibility with UTXO Model: Inherits the compatibility with Bitcoin's UTXO model, ensuring compatibility with Bitcoin's native architecture.

• Simplified Operations: Following the simplicity of the RUNES design, PIPE Protocol adopts a similar streamlined approach, making it user-friendly.

• Fair Minting Mechanism: Considering fairness in the token minting process, PIPE Protocol provides a fair minting mechanism.

、（PIPE Protocol Ownership）

Bitcoin Lightning Network:

A Second-Layer Protocol to Enhance Transaction Speed and Efficiency. The Bitcoin Lightning Network is a second-layer protocol designed to improve the speed and efficiency of Bitcoin transactions by creating an additional transaction layer on top of the Bitcoin blockchain. The concept was initially introduced in 2015, outlined in detail in a white paper by Joseph Poon and Thaddeus Dryja. However, the practical deployment of the Bitcoin Lightning Network took place in 2018 when Lightning Labs announced the initial release of LND (Lightning Network Daemon), marking the official implementation of the Lightning Network. This innovative protocol has brought significant changes to the Bitcoin ecosystem, offering users a faster and cost-effective transaction experience.

（Bitcoin Lightning Network Node Count (Data Source: Glassnode)

In summary, in the short term, we anticipate that the Bitcoin ecosystem will continue to maintain a state of 'one project, one protocol solution,' with a diverse array of protocols coexisting. Looking ahead in the long term, we foresee the emergence of a virtual machine, a unified development environment for developers, while expecting the Bitcoin NFT market to experience growth exceeding 100 times its current scale.

3. Introduction of TOPRARE NFT Platform

3.1 Distinctions Between Ethereum and Bitcoin NFTs

	Bitcoin NFTs	Ethereum NFTs
Difference 1	All data is stored within the Bitcoin network	lmages, videos, and other information are often storedon IPFS or third-party servers,posing a risk of becoming inaccessible.
Difference 2	Permissionless:Transactions can be completed in adecentralized manner through PSBT without the need for "authorization."	Transactions require authorization from a smart contract. The process ison-chain.
Difference 3	The cost of minting is proportional to the transaction volume. which deters spamdata.	The cost of minting is not related to data volume, and most NFT data is off-chain.

3.2 Our Goal: Comprehensive NFT Trading Platform

We aim to establish a comprehensive Bitcoin ecosystem NFT trading platform, as we strongly believe that the Bitcoin NFT ecosystem is poised for explosive growth. Our platform is designed to support various protocols, including Ordinals, Atomicals, PIPE, and Runes. We will aggregate major trading platforms in the market, offering a diverse range of assets such as inscriptions, artworks, gaming items, and PaaS cards.

Key features of our platform include a focus on user experience, supporting both buyer and seller markets, providing historical price trends for NFTs, and introducing an "ALL Activity" interface for monitoring multiple NFT series and transactions simultaneously. This feature aims to assist users in identifying the most lucrative deals.

We boast the following characteristics:

• Fast Transaction Speed: Unique broadcasting and transaction processing mechanisms enable swift and efficient transactions.

• Comprehensive Marketplace: Encompassing various protocols, including Ordinals, Atomicals, PIPE, and Runes, providing a broad spectrum of options for users.

• Multi-Incentives: Users can earn substantial rewards through participating in transactions, placing orders, engaging in activities, and more.

• Project Incubation: Offering end-to-end support for launching new projects, fostering a dynamic environment for innovation within the ecosystem.

Our goal is to create a dynamic and user-centric trading platform within the Bitcoin NFT ecosystem, providing a seamless and rewarding experience for participants.

3.3 About Staking

TOPR is the utility token of the TOPRARE platform, serving various scenarios within the ecosystem. It is utilized for incentivizing the trading platform, reducing transaction fees, exercising voting rights for the resolution of new project listings, and possessing governance rights. Additionally, TOPR allows token holders to participate in ecosystem development decisions through voting and governance processes. Users who stake TOPR can share 50% of the platform's revenue. The specific staking rules are as follows:

Staking Days	APY（Reward：TOPR）	Unstake Fee
Flexible	6%	0.1%
7Days	10%	0.1%
30Days	15%	0.1%
90Days	30%	0.1%
180Days	55%	0.1%

Simultaneously, to promote platform development, the platform will introduce various incentives such as order placement rewards, transaction rewards, and many more gameplay features. Specific details will be announced in the future.

3.4 About the Ecosystem

In our ongoing effort to further explore the future of the Bitcoin ecosystem and enhance the TOPRARE ecosystem, we plan to launch a Bitcoin Layer 2 project at an opportune moment. This project primarily aims to provide more efficient and secure applications derived from Bitcoin NFTs. It will inherit Bitcoin's decentralized characteristics, offering developers an easily interactive Bitcoin Execution Virtual Machine (BEVM) to expand the use cases for Bitcoin smart contracts. This initiative seeks to empower Bitcoin, enabling it to transcend the constraints of being non-Turing complete and lacking native support for smart contracts on the Bitcoin blockchain.

Token Allocations and Distributions

Name	TOPRARE
Ticker	TOPR
Network	BRC-20
Total Supply	1,000,000,000(One Billion)

Team Members: 20% will be allocated to team members for at least 2 years of team operational expenses, including but not limited to salaries, office expenses, and administrative travel.

Early Investors: 21% will be allocated to early project investors, utilizing a linear release method with a monthly release of 5%.

Advisors: 5% will be allocated to team advisors to assist in the team's development and provide valuable strategic advice for the project.

Marketing Allocation:

Marketing: 10% will be allocated to run marketing campaigns, collaboration campaigns, and strategic partnerships to expand the project to wider audiences.

Ecological Development Allocation:

Ecological Development Fund: 18% will be allocated to the ecological development fund, primarily for building ecological development, including but not limited to TOPRARE platform business expansion, layer 2 layout, project incubation, and external ecological linkages.

Treasury: 20% will be allocated to the treasury, intended for rewarding users who make significant contributions to the community and project. It also serves as a risk prevention fund in case of significant disagreements within the project, with governance shared among all holding users.

Launchpad: 6% will be allocated for the initial token launch to raise funds for the development and promotion of the platform.

Tokennomics

5. Roadmap

Q3 2023

• Project Conceptualization

• Team Formation

Q4 2023

• Website Development

• Construction of Trading Market

Q1-Q2 2024

• Aggregate major Bitcoin NFT trading markets

• Support prominent protocols for issuing NFTs on Bitcoin

Q3-Q4 2024

• Develop complementary features supporting project growth, such as IEO, marketing, airdrops, lotteries, etc.

• Incubate one or more impactful NFT projects

Q1-Q2 2025

• Develop supporting infrastructure for the development of Bitcoin Layer 2 for the ecosystem

• Introduce DApp developers for Layer 2 to expand business reach

Q3-Q4 2025

• Integrate the TOPRARE NFT trading platform with related projects based on Layer 2 for ecological fusion, Empower real-world industries through ecosystem integration.