Roup (Ordinals): What Is It and How Does It Work?

What Is Roup (Ordinals)?

Roup is a pivotal channel for the integration of BRC-20 assets into Bitcoin Layer 2 (L2) trading. This project, spearheaded by the community, is unique in its approach, as it ensures that all revenues generated are reinvested back into the community. At its core, Roup leverages the MAP Protocol's BRC201 standard, a new cross-chain solution. This technology not only facilitates secure and traceable bridging on top of Bitcoin but also significantly reduces transaction costs. By rolling up BRC-20 tokens to MAP Protocol's second layer, Roup offers a staggering reduction in gas fees, saving users more than 100 times the cost.

Resources

Official Documents: https://docs.rolluper.xyz/

Official Website: https://www.rolluper.xyz/en

How Does Roup Work?

Roup operates primarily through the BRC-201 cross-chain protocol developed by the MAP Protocol. This protocol enables BRC-20 assets to gain traceable cross-chain capabilities, allowing these assets to be implemented and expanded within the MAPO L2 ecosystem. The BRC-201 standard, an extension of the BRC-20 standard, is designed to be backward compatible while enhancing scalability. It particularly focuses on bridging BRC20 tokens to smart contract-supported chains like Ethereum, BNB Chain, and Near, among others.

The technical workflow of Roup involves the inscription of new BRC-201 tokens, which are then transferred to the ROUP Vault Address for rollup. This process underlines the seamless integration and expansion of BRC20 assets across different blockchain networks, ensuring both security and efficiency in transactions.

What Is the Tokenomics of ROUP Token?

The ROUP token is Rolluper's native BRC20 platform token, with a total issuance capped at 2.1 billion tokens. Each engraving of these tokens is limited to 10,000, emphasizing a fair and equitable distribution. Unlike previous projects where token distribution often favored development teams and VCs, Rolluper ensures a more democratic and community-focused approach. ROUP has garnered significant attention, boasting a vibrant community of over 3,900 holders as of January 2024.

In terms of tokenomics, Roup stands out with its commitment to returning fee revenue entirely to the community. This is achieved through methods like buy-backs and token destruction, with specific ratios decided by token-holding users. Notably, at least 30% of the fee revenue is allocated to the developer community, acknowledging their role as the project's initiators and sustaining their motivation to enhance the community's interests.