FAQ
Quick answers to common questions about BitHive
What is BitHive?
BitHive is a native staking protocol for Bitcoin. It has a modular architecture to provide shared security for all types of PoS blockchains and AVSs.
BitHive utilizes native Bitcoin scripts on the Bitcoin chain, ensuring the highest degree of security. BitHive facilitates the Bitcoin staking operations using NEAR’s Chain Signatures, and decentralized off-chain relayers. It is worth noting that users only need a Bitcoin wallet to operate; they do not need NEAR accounts or $NEAR tokens. When considering only deposits and withdrawals, the system does not require trust in the NEAR’s Chain Signatures or the relayers.
How does BitHive work?
When staking, the user's BTC is transferred to a P2WSH address generated by native Bitcoin script. The ownership of this address remains with the user, while the Bitcoin script enforces a lock-up period for the staked BTC. The deposit info is submitted to the BitHive Contract (built on NEAR) via BTC light client to verify the deposit transaction. Once the lock-up period expires, the user can withdraw the full deposit independently. However, if the user wishes to withdraw before the lock-up period ends, she must request a signed message for early withdrawal, signed by the BitHive contract using chain signature, in addition to her own signature. Together, these signatures facilitate the early release of the deposit.
Does my BTC leave my custody once staked?
No, the BTC does not leave your custody because it is not sent to any third party. It always remains within a self-custodial Bitcoin address that only you can control.
Is my BTC safe if there are issues with the BitHive Contract?
100% yes. Your BTC asset control belongs to your BTC account, and no smart contract on NEAR can operate your BTC without your authorization. In extreme cases, even if the BitHive contracts have bugs or Chain Signatures’ MPC network becomes unavailable, your funds cannot be withdrawn without your own signature. Even in the small likelihood of the Chain Signatures system going down, you can eventually withdraw your deposit after the pre-set lock-up period.
Will I be slashed?
Currently, the delegation feature is not yet available, so there is no slashing functionality. After the AVS network is launched, node operators can choose which AVS can slash the staked BTC. As a delegator, you can select which node to delegate to based on the node's performance and your risk preferences.
What new risks should I be aware of compared to just holding BTC?
- Code Security: There may be vulnerabilities and errors in the code related to the Bitcoin scripting language, but we are in the process of completing an audit and we will open source the code. Generally, Bitcoin script logic is relatively simple and clear.
- System Stability: If the system service is unavailable or for other reasons, it may temporarily prevent BTC from being unstaked or withdrawn. However, after a certain preset lock-up period (e.g.,64,000 blocks), you can still withdraw your BTC solely through your account, without relying on any other conditions.
How long will it take for my staking status to be confirmed?
After signing with your Bitcoin account, it will enter a Processing status. Once 6 Bitcoin blocks are confirmed and the deposit transaction is verified via the BitHive Contract deployed on NEAR, it will change to a Confirmed status.
How long do I need to wait to withdraw my BTC after unstaking?
2 days (48 hours).
Will I pay any fees for staking?
Yes. You need to pay BTC network fees to have BTC staking and withdrawal transactions delivered. BitHive app will estimate network fees for you, although the actual network fee might be higher.
Here are more details:
- Staking Transaction Fee (Fs): The fee is for the staking transaction. To stake amount S, you need at least S + Fs in your wallet, the fee is calculated based on current network conditions.
- Withdrawal Transaction Fee (Fw): The fee is for the withdrawal transaction that transfers the staked BTC back to your wallet. It is deducted from your withdrawable stake, which means you'll receive S - Fw in your wallet. This fee ensures fast inclusion based on current network conditions.
In short, to stake S, you need have S + Fs in your wallet, and after withdrawal, you will receive S - Fw back.
Does BitHive support hardware wallets?
BitHive currently supports Keystone. More supported hardware wallets are coming soon.
Can wallets that hold fungible tokens like BRC-20, ARC-20, or Runes be used?
No. Please do not connect or use Bitcoin wallets that hold BRC-20, ARC-20, Runes, or any other NFTs or Bitcoin-native assets (except BTC).
Misusing software built for such tokens may not function properly and could result in the loss of all these tokens.
What rewards can I expect from staking on BitHive, and how are they calculated?
Currently, participating in BTC staking on BitHive will earn Allstake points rewards, which are determined based on the total deposit amount through Points Multipliers. The points amount is calculated as follows:
Points amount = BTC amount * BTC price * Multipliers * Duration.
Each staking transaction is calculated individually and then summed up to display the total points earned.
| Total Deposited Amount (BTC) | Points Multiplier |
|---|---|
| 0 ~ 200 | 16x |
| 200 ~ 2000 | 8x |
| 2000 ~ 10000 | 5x |
| 10000 ~ ∞ | 3x |
More rewards and details will be released.
What are the allowed minimum and maximum BTC amount for a single deposit?
Each deposit has a valid range (min and max BTC amount) which changes along with the total deposited BTC amount.
The invalid deposits are still able to be unstaked and withdrawn, but won't be able to receive Allstake points rewards.
| Total Deposited Amount (BTC) | Min (BTC) | Max (BTC) |
|---|---|---|
| 0 ~ 200 | 0.005 | 1 |
| 200 ~ 2000 | 0.005 | 5 |
| 2000 ~ 10000 | 0.005 | 10 |
| 10000 ~ ∞ | 0.005 | ∞ |