OIP-10
OIP-10 is in progress
Purpose
OIP-10 introduces the virtual credit system to the orc-20 token standard. This system allows users to send their ORC-20 inscription to the virtual ATM to receive virtual credit. These virtual credit can then be used to inscribe new balances. This system provides several benefits, including:
Clarity: The virtual credit system eliminates the ambiguity of the "send remaining balance" inscriptions. This makes it clear that only the specified amount of tokens will be sent, leaving the remaining balance in the original address.
Efficiency: The virtual credit system allows for more efficient use of the UTXO model. When a user sends their inscription balance to the virtual ATM, the entire UTXO is not spent. Instead, the user receives virtual credit that represent their total balance. This can reduce transaction fees and improve network efficiency.
Flexibility: The virtual credit system gives users more flexibility in how they manage their inscription balances. Users can now split their balance into smaller amounts and inscribe new balances with greater ease. This can be useful for a variety of purposes, such as making micropayments or enabling decentralized trade.
Design
Cash System
The virtual credit system of OIP-10 allows users to split (or merge) their ORC-20 inscription balance into smaller (larger) amounts and inscribe new balances. This is done by sending existing valid "mint" or "send" inscriptions to the virtual ATM in exchange for virtual credit. The virtual ATM then provides simple merge and split functionality.
Assuming you have an ORC-20 inscription with a balance of 1,000 tokens. You can send this inscription to the virtual ATM and receive 1,000 virtual credit. You can then use these virtual credit to inscribe two "send" inscriptions with new balances of 500 tokens each.
The virtual credit system also provides a way to merge balances. Assuming you have two ORC-20 inscriptions with balances of 500 tokens each. You can send these inscriptions to the virtual ATM and receive total credit of 1,000. You can then inscribe a single inscription with a balance of 1,000 tokens.
The virtual credit system is a powerful tool that can be used to manage ORC-20 inscription balances in a more flexible and efficient way. It is a valuable addition to the orc-20 token standard and can be used to improve the overall user experience.
Here are some additional details about the virtual credit system:
The virtual ATM is a designated address that is used to manage virtual credit for all ORC-20 tokens.
Virtual credit is not transferable. They can only be used to inscribe new balances.
The virtual credit system is designed to be backwards compatible. Existing "mint" and "send" inscriptions can be sent to the virtual ATM and converted into virtual credit.
The virtual credit system is only needed when users want to split or merge balances.
Virtual ATM Address:
Taproot: bc1pgha2vs4m4d70aw82qzrhmg98yea4fuxtnf7lpguez3z9cjtukpssrhakhl
.sats Name: orc20🔥.sats
.oid Name: orc20🔥.oid
Consider 2 Scenarios of Sending Transactions
Scenario 1: Reuse existing "mint" and "send" inscriptions. Users can reuse and pass through existing "mint" or "send" inscription in downstream transactions as long as the inscription has a valid balance.
Scenario 2: Split existing "mint" or "send" inscriptions into smaller balances. Users can inscribe new "send" inscriptions (splitting amounts) after receiving the virtual credit. Users can reuse and pass through a "send" inscription in downstream transactions as long as the "send" inscription has a valid balance. To invalidate a "send" inscription, the owner must send it to the virtual ATM in exchange for virtual credit.
Recycling and Reward
The virtual ATM is like a recycling centre for unused ORC-20 inscriptions. When you send an unused inscription to the virtual ATM, it marks the inscription invalid and recycles the satoshis that were used to create it. In return, the virtual ATM gives you virtual credits, which you can use to inscribe new balances.
Each inscription may contain ~500 sats, which is $0.15. This means that the cost of splitting an ORC-20 balance is much lower than the cost of splitting a BRC-20 balance, which requires inscription fees of ~$1-$3 each time.
The virtual ATM also helps to reduce the risk of potential fraud or indexing errors. When an inscription is sent to the virtual ATM, it is marked invalid and cannot be used again.
The virtual ATM also acts as a reward engine. Over time, the virtual ATM accumulates a pool of unused satoshis. These satoshis are used to reward the ORC-20 ecosystem.
Post OIP-10
Remaining Balances
No new "remaining balances" are allowed after OIP-10. Users no longer inscribe the "remaining balance" to complete a transaction. All new "remaining balance" inscriptions will be invalid.
Existing "remaining balances" stay valid, but can only be transferred to the virtual ATM in exchange for credits after OIP-10. User cannot use the existing "remaining balances" in a transaction.
Example:
Before OIP-10, Alice's has balance of 1,000 on two inscriptions: "Send 100" and "Send Remaining Balance" which holds 900 remaining balance.
After OIP-10, Alice can only send the "Send Remaining Balance" inscription to the virtual ATM in exchange for 900 credit.
If Alice sends the "Send Remaining Balance" inscription to Bob after OIP-10, the account balances of both Alice and Bob will not change. At this point, Alice's balance is still 1,000. But she no longer holds the "Send Remaining Balance" inscription.
WARNING: Since Alice no longer holds the "send remaining balance" inscription, she cannot increase credits by sending inscriptions to virtual ATM. This means that even though Alice's balance is 1,000, the 900 remaining balance will be permanently in a locked state.
RECOMMENDATION: After OIP-10, send the "Send Remaining Balance" to virtual ATM for credit.
Cancellation
After OIP-10, explicit cancellation is no longer needed in a transaction since each inscription is like a UTXO which makes transactions atomic. To "cancel" an inscription before sending it out, simply send it to the virtual ATM for virtual credit, so that you can inscribe a new amount.
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