Bitcoin-Rewards-System-Proposal
DT7-QR Rewards System:
A Decentralized Incentive Layer for Bitcoin Engagement and Transactions
Abstract
The DT7-QR Rewards System is a decentralized framework designed to enhance Bitcoin’s utility as a transactional currency and community-driven ecosystem. By integrating QR code-based engagement, tiered staking, and governance, it incentivizes active participation and peer-to-peer transactions while navigating regulatory realities. Built for scalability and for payouts, the system distributes BTC rewards from a community treasury, empowering people to move beyond institutional tools and assert control over their financial interactions.
1. Vision: Bitcoin as a Living Currency
Bitcoin was created as a decentralized, peer-to-peer currency, yet its adoption is increasingly shaped by institutions and regulatory oversight.
DT7-QR Rewards System aims to-
Drive Engagement: Encourage active participation through QR code scans embedded in livestream platforms.
Promote Transactions: Distribute BTC rewards via Lightning Network (LN) to facilitate real-world use.
Empower Communities: Enable peer-driven governance to counter centralized control.
Ensure Compliance: Balance regulatory requirements with peer privacy and decentralization.
This system positions Bitcoin as a vibrant, transactional currency, not merely an investment vehicle.
2. Core Mechanism: QR-Based Incentives
The system incentivizes engagement and transacting by rewarding peers for scanning QR codes integrated into a livestream.
Key components include:
QR Scans: QR codes earn ERC-20/testnet (a low-value unit for tracking participation)
Reward Allocation: 30% of the daily treasury is distributed as BTC/LN rewards to eligible wallets based on proportion of ERC-20/testnet scanned.
New Peer's Incentive: New participants (<1 week, no staking history) completing consecutive scans receive a one-time random ERC-20/testnet bonus to encourage onboarding.
Eligibility: Wallets must complete at least 2 scans/day to qualify for QR rewards, ensuring active engagement.
Rewards are distributed via BTC/LN to reinforce Bitcoin’s transactional utility.
3. Treasury and Fund Allocation
The treasury, held in BTC within a multisig wallet, is funded by community-driven sources.
Funds are allocated as follows:
80% Traders:
60% for games and social interactions /livestreams
30% for QR scan rewards, distributed as BTC/LN
10% for staking rewards.
20% Savings:
6% operational
7% yield generation
7% cold storage, reserved for high-tier rewards / DAO community.
This allocation balances immediate rewards with sustainable growth, encouraging Bitcoin’s use in everyday transactions.
A separate staking system incentivizes long-term participation:
Tiered Structure: Higher tiers require more ERC-20/testnet staked over longer periods, offering increasing weekly BTC/LN rewards.
No QR Dependency: Staking rewards are independent of QR scans, ensuring accessibility for passive peers.
Governance Eligibility: Staked wallets retain voting power, even if below minimums, promoting inclusivity.
Staking rewards in BTC/LN, reinforcing Bitcoin’s role as a transactional currency.
5. Anti-Gaming and Privacy Measures
The system ensures fairness and privacy while combating abuse:
Time-Bound Nonces: QR codes include unique identifiers, generated and verified.
Scan Limits: Automated checks and caps.
Privacy-Preserving Logging: Wallet IDs are hashed and verified
Manual Oversight: Reward distribution includes checks
These measures maintain integrity while protecting user privacy in a regulatory-conscious environment.
6. Governance: Community Control
The system empowers peers through decentralized governance:
Voting Power: Determined by staking duration and ERC-20/testnet scanned, with weights favoring stakers with a vote cap to prevent corruption.
Initial Framework: Early stakers define guidelines transitioning to a DAO.
Transparency: Decisions are logged for auditability.
Adaptability: The DAO can adjust minimums, caps, and weights to reflect community needs and regulatory changes.
This model ensures peers, not institutions, shape the system’s future.
The system is designed to navigate global regulatory landscapes:
U.S. peers: Rewards are distributed via non-custodial LN wallets with minimal logs to comply with IRS/SEC rules.
Non-U.S. peers: Direct BTC/LN payouts
No Stablecoins: Avoiding securities exposure, with ERC-20/testnet low value serving as a compliance buffer.
Manual Distribution: Human oversight of payouts
By leveraging Bitcoin’s infrastructure, the system supports compliance without sacrificing decentralization.
8. Technical Implementation
The system combines off-chain and on-chain components for efficiency:
Off-Chain: hashed wallet IDs, timestamps, ERC-20/testnet totals
On-Chain: A dApp enforces limits, nonces, and tracks staking/governance data
Reward Distribution: Manual BTC/LN payouts
Setup Efficiency: Core components (hashing, nonces, limits) leverage trusted tools for rapid deployment.
This hybrid approach balances scalability, cost, and decentralization.
9. Enhancing Bitcoin’s Role
The DT7-QR Rewards System strengthens Bitcoin’s utility by:
Encouraging Transactions: BTC/LN rewards incentivize real-world use
Fostering Engagement: QR-based participation drives community interaction
Empowering Users: Governance ensures community control
Navigating Regulation: Privacy-preserving and compliance-focused design prepares for global oversight.
The alpha creating -ban-proof, philanthropy-driven system crushes ETFs/DATs and positions Bitcoin as a dynamic currency for peer-to-peer transactions and community ecosystems.
10. Additional Integration
offline meetup with a trusted SeedSigner operator
Here’s the flow using Wifi device (SIM-less) with pre-downloaded QR codes at a meetup, using Bitchat verification, and Cashu rewards:
Runs Python script to generate QRs -each with nonce, stream tokens
Save as PNGs or sync with Bitchat/Cashu node.
Device goes offline afterward.
Meetup Setup:
At location operator displays QRs on phone screen (or prints them).
Users scan QRs with their SIM-less phones via Bitchat app.
Bitchat Verification (Offline):
Bitchat’s Bluetooth mesh broadcasts scan data (nonce, hashed wallet) to nearby phones.
2/3 peer confirmations validate the scan.
SeedSigner Processing (Trusted Operator):
Operator uses SeedSigner’s camera to scan user-submitted QRs (or Bluetooth if paired).
SeedSigner signs a Cashu mint request or PSBT for CDAT payout.
All air-gapped—no USB/Internet.
Cashu Ecash Minting:
Valid scans mint ecash tokens (stored on user’s phone via Cashu wallet).
Tokens are bearer assets, usable offline until broadcast.
Broadcast Later (Safe Connection):
Users or operator broadcast ecash/PSBT to LN/CDAT when online (e.g., via Tor/VPN post-meetup).
Rewards hit user wallets as BTC/LN
Live-stream Tie-In:
Operator shares signals via Bitchat (PNG over Bluetooth).
Users trade signals, scan QRs, and earn rewards, compounding.
This framework invites peers to reclaim Bitcoin’s original promise: a currency by and for the pepo.
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Technical Roadmap
Phase 1: QR scanner prototype
Phase 2: Staking smart contract
Phase 3: DAO voting
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Call for Collaborators
I'm looking for developers to help prototype this!
Skills needed: Bitcoin/Lightning integration, QR code handling, smart contracts for staking/DAO.
Open an Issue to discuss or fork to start coding.
Built with Bitcoin Script/Lightning for payouts
Ethereum/Solana for DAO governance
Node.js for off-chain QR generation.
Tech Stack Needed
QR libraries like qrcode.js
multisig via BitcoinJS
dApp on Web3.js
How to Contribute
Fork this repo, submit PRs for code prototypes