Binance has released an institutional-grade research report on Tron’s BitTorrent token (BTT).
The report outlines the token’s incoming initial coin offering, which was announced after Tron’s multi-million dollar acquisition of the file sharing platform last year.
BitTorrent’s BTT token will be utilized as a medium of exchange by BitTorrent users. The token may be used to purchase downloadable media, tip content providers, and participate in crowdfunding on BitTorrent. It will also be used to reward people who share files on the platform.
“Existing BitTorrent clients will implement an optional set of backward-compatible protocol extensions which allow them to bid and receive bids for their bandwidth, working in tandem with a cryptocurrency wallet and bidding engine.”
“The project plans to utilize the BTT in more utility cases beyond the current sharing of bandwidth, expanding access to more services including general storage, computation, and resource availability.”
“The token will initially be used in BitTorrent clients as payment in exchange for requesting upstream bandwidth. Usage will be extended to additional capabilities including purchasing content, tipping live streaming performers, and crowdfunding the creation of new works.”
The total token supply of BTT tokens will be 57,746,762 BTT, and about 9,816,949 BTT may be sold. The ICO will involve a private sale (2%), public sale (6%) and seed sale (9%).
Airdrops are scheduled to give away BTT tokens to Tron’s TRX token holders. 10,890,000,000 BitTorrent (BTT) will be given away at the first airdrop. The proposed airdrop starts on February 11 and will continue for several years.
According to the report,
“TRON Airdrops continue for 6 years until 2025, and BitTorrent Airdrops, BitTorrent Ecosystem tokens, & Partnership tokens continue unlocking until 2028.”
There will be an unlocking period for token holders until 2028. During the unlocking period, tokens will be progressively released.
BitTorent faces prospects of highly anticipated funding but also intense competition from similar file sharing platforms such as Upfiring, Flixxo, JoyStream, and LBRY. Two of these competitors use Ethereum, the current blockchain platform leader in terms of adoption.