> For the complete documentation index, see [llms.txt](https://orc20protocol.gitbook.io/orc-20-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://orc20protocol.gitbook.io/orc-20-protocol/general/about-orc-20-protocol.md).

# About ORC-20 Protocol

### Introduction

**ORC-20** is an open token standard for Bitcoin Ordinals to enhance the key features of BRC-20. It is aimed to be compatible with BRC-20 to improve adaptability, scalability, security, and to eliminate the possibility of double spending. ORC-20 is an experimental protocol and there is no guarantee that the tokens created with the standard will have any value or utility. Therefore, users should do their own research before investing ORC-20 related assets.

#### Ordinals and BRC-20

Ordinals are digital artifacts introduced by Rodarmor. It can carry various types of data on Bitcoin network.

{% embed url="<https://docs.ordinals.com/>" %}
What is Bitcoin Ordinal?
{% endembed %}

BRC-20 is token standard by Domo. Tokens can be deployed, minted, and transferred using Ordinal inscriptions.

{% embed url="<https://domo-2.gitbook.io/brc-20-experiment/>" %}
What is BRC-20?&#x20;
{% endembed %}

### Concept&#x20;

**Design for mass adoption of Ordinal Theory & BRC-20:**&#x20;

* Deploy new ORC-20 ~~or migrate existing BRC-20 with **deploy**~~
* Mint ORC-20 tokens with **mint** operation
* Transfer ORC-20 tokens with **transfer** operation
* Burn ORC-20 tokens with **burn** operation
* Upgrade existing ORC-20 (eg. supply and max mint) by **upgrade**&#x20;
* Create an operation enabling the interchangeability of two ORC-20 tokens

***It is recommended that deploy ORC-20 by explicit declaration, or by default. Any ordinal inscription which meets ORC-20 standard can be considered as ORC-20 tokens.***

### ORC-20 Reward System

The construction of essential infrastructure such as ORC-20 indexers and marketplaces require active participants among developers. Currently, developers can only gain profits through transaction fees or minting fees. The Ordinals eco lacks a mechanism with native developer incentive functionality. Therefore, based on several features of ORC-20, we have designed a continuous incentive mechanism to reward developers.

For all the operations of ORC-20, including potential future operations, users are required to ***mint inscriptions and transfer*** for authorisation. Among all the operations, the transfer address can be any address, including self-transfer. Developers can modify the transfer address to their own and capture a fraction of at least **500** **sats** generated in each transaction.&#x20;

What just mentioned above are decentralized, which means that these fees are not mandatory rather than a potential opportunity for developers to capture value. Users still retain the option to transfer the inscription to themselves through various methods.<br>

### Use Cases

On the basis of ORC-20 Protocol, developers can effortlessly construct multiple use cases, include but not limited to:

* Fair minting mechanism&#x20;
* Token economic model with deflationary or inflationary &#x20;
* Stablecoins&#x20;
* Initial ORC-20 offering
* Interchange of ORC-20 assets&#x20;
* Stakings
* Bridge between ORC-20 and BRC-20&#x20;

Due to the scalable design of ORC-20, more potential use cases will be discovered by the community and developers.


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