On February 11, BitTorrent together with TRON will launch the first large-scale airdrop, during which the holders of the TRX tokens will receive the new BTT tokens for free. According to experts, this campaign will play a vital role in the further development of both BitTorrent and TRON, thus maintaining the interest of traders and investors in both companies and their cryptocurrencies. DeCenter figured out how precisely this event will go through and how many BTT coins will be issued.
Beginning of Cooperation between BitTorrent and TRON
Many heard of the Chinese blockchain startup TRON for the first time in September 2017, after the project collected $70 million in a few days during the ICO. TRON’s goal is to create and launch a leading blockchain network that would allow users to exchange content in a decentralized environment and develop dApps, or decentralized applications. The project’s founder Justin Sun has repeatedly called TRON an upcoming replacement for Ethereum. Today, the token of the project, TRX, is among the top ten cryptocurrencies by market capitalization, trading on most of the main crypto exchanges.
Speaking of the technical specifications of the network, TRON uses a DPoS (Delegated Proof-of-Stake) consensus algorithm, in which 27 “super representatives” selected by the holders of TRX tokens by voting are responsible for confirming transactions and maintaining the network. TRON supports the development and launch of dApps and smart contracts, for which the network uses TVM (TRON Virtual Machine). Although it is based on Java, and not on Solidity, TVM is fully compatible with the Ethereum network.
As for BitTorrent, this is probably the most famous P2P protocol for peer-to-peer file sharing, which was launched in 2001 by a well-known developer Bram Cohen. It was Cohen who developed the first BitTorrent client. It is worth noting that in the first three years, more than 20 million users downloaded the software. Today, the number of monthly users stands at about 120 million, and the P2P protocol is used by companies such as Facebook, Twitter, Internet Archive, Blizzard, World of Tanks, Eve Online, and the U.K. government.
Despite the high popularity of BitTorrent, Bram Cohen has nothing to do with the project nowadays. According to him, he stopped working on BitTorrent in the summer of 2017, and a year later, left the project for good.
The acquisition of the BitTorrent’s P2P protocol and its client uTorrent was announced on June 19 of last year and, according to CoinDesk, amounted to approximately $120 million (while TechCrunch reported that the real figure was closer to $126 million). Justin Sun said that BitTorrent’s purchase was aimed at creating “the largest decentralized ecosystem” as the network had “more than 1 billion users from 138 countries.”
Furthermore, on November 27, 2018, the TRON Foundation announced an integration plan with BitTorrent as part of the Atlas project, during which BitTorrent will have to connect its peer-to-peer network to the TRON blockchain. Thus, BitTorrent customers will be able to pay for uTorrent premium plans using TRX, BNB, and BTC cryptocurrencies.
As part of the partnership, the BitTorrent Foundation was launched for developing decentralized services and solutions. The fund will be responsible for transferring the torrent tracker to the TRON blockchain as well as issuing and distributing internal tokens to BitTorrent users. Thanks to the BitTorrent Foundation, on January 3 of this year, the launch of the TRON-powered BTT (BitTorrent Token) was announced.
uTorrent users will be able to receive BTT for high activity and use them to increase the speed of downloading files and encourage the activities of seeds (users who distribute files). Moreover, the company’s plans include the launch of the streaming service where users will be able to do live broadcasts. Thus, content creators will be able to receive remuneration in BTT for their work, and the platform itself will become a key competitor to YouTube, Twitch, and Periscope.
TRX Holders Will Be Able to Receive BTT for Six Years
On January 20, the BitTorrent Foundation announced a large-scale six-year plan for conducting an airdrop of BTT tokens. The first airdrop will occur on February 11 of this year at 12:00 PM UTC at an approximate ratio of 1 TRX to 0.11 BTT. The ratio of TRX to BTT in subsequent airdrops, however, may vary due to changes in block rewards and burning of coins.
Starting from February 11, 2019, and until February 11, 2020, holders of TRX tokens will be able to participate in the distribution of 11,880,000,000 BTT tokens, which constitutes 1.2% of the total supply. Further on, in 2020, the issuer will hold an airdrop for another 12,870,000,000 BTT tokens, which is 1.3% of the total supply. Thus, each year, the percentage of BTT tokens distributed will increase by 0.1% until it reaches 1.7% by 2025. Moreover, the BitTorrent Foundation will reward longtime TRX holders with an additional 99,990,000,000 BTT during online and offline events, which amounts to 10.1% of the total number of tokens. The total number of BTT tokens in circulation should reach 990 billion.
TRX tokens holders and all official wallets supporting the TRON blockchain can participate in airdrop. The following crypto exchanges and wallets confirmed their support for the BTT airdrop:
Huobi and Huobi Wallet
The distribution of BTT tokens will occur automatically, regardless of whether TRX tokens are “frozen” or not.