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Bitcredit Protocol

e-IOU

The Specialised Guarantee Asset of Bitcredit

What is e-IOU?

A digital commodity on Bitcoin mainchain which secures the Bitcredit Network.

E-IOU is not a coin, the coin for end users is Bitcoin. It is a digital commodiy which secures the mint layer, it does not affect end of Bitcoin e-cash other than ensuring exit into Bitcoin at all times.

E-IOU is extra collateral on top of the mandatory 100% backing of Bitcoin credit money. Wildcat mints in the Bitcredit Network must hold e-IOU for verifiable proof that their e-cash production is absolutely secure. It serves as a risk buffer until recovery in case of a dishonoured e-bill.

When minting e-bills into e-cash, wildcats must send a small value percentage of e-IOU to the Bitcredit DAO which votes on reward distributions for contributors from the community. Holders of e-IOU also participate in general decision making.

The market value of e-IOU crystallises the expected progress of the Bitcredit Network. The more world trade moves onto Bitcoin rails, the more wildcat mints. More wildcats means more e-IOU demand which means a higher e-IOU price which means a better capitalised, more secure network.

Diagram of e-IOU as the guarantee asset securing the Bitcredit mint layer

Getting started

1. Get a wallet

Download a wallet from your appstore.

Wallets →
2. Get e-IOU

Contribute to the community or buy some at an exchange.

Exchanges →

Free Money, Free Trade.
Fix the Money, Fix the World.

The Bitcredit community cares about sound money, free trade, and a free world. We teach people about the use of Bitcoin in the real economy. We want to end the fiat currency system which keeps most people poor, even entire nations in misery and poverty.

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e-IOU: What it does

Special Guarantee Asset

The market capitalisation of e-IOU overcollateralisation over and above the 100% backing in Bitcoin and Bitcoin-denominated ebills. This verifiable asset and the cascading nature of the Bitcredit mint network ensures the mandatory onchain payment of e-bills at all times by bridging the recourse time gap.

Rewarding contributors

The quarterly e-IOU issuance rewards contributors to the Bitcredit ecosystem, such as independent developers, software laboratories, educators teching "Bitcoin for Business", such trade finance and supply chain finance on Bitcoin.

DAO decision making

Guarantee capital. Every bitcredit issued is 100% Bitcoin-backed. e-IOU sits above that as an additional layer of collateral, keeping the system sound. Governance. e-IOU holders set protocol policy, approve proposals, and vote on strategic decisions. No central authority. No gatekeepers.

e-IOU: How it works

A BRC-20 token built on Bitcoin and anchored to its security. Supply is issued quarterly, declining 4.2% each quarter to mirror Bitcoin's four-year halving cycle. Total supply is fixed at a maximum 1 billion tokens over 120 years.

New tokens are distributed via decentralised governance. Any holder can propose changes to the distribution and vote on awards.

Chart of the declining quarterly e-IOU issuance schedule
Diagram of e-IOU issuance and distribution through DAO governance

e-IOU: Why hold it

Exposure to protocol growth

As more wildcat mints join the network and more trade flows through Bitcredit rails, demand for e-IOU rises. Every new mint must hold e-IOU to prove its e-cash is fully secured. Growth in trade volume means growth in e-IOU demand.

A voice and vote on strategic decisions

e-IOU holders decide how the protocol evolves. Propose changes, vote on distribution, and shape strategic direction.

Wallets →

TODO:

Reward recipients are free to hold e-IOU for future value upside or sell their e-IOU on exchanges or via OTC. They can also dedicate their e-IOU to participate in a freely chosen mint's capital.