Nakamoto Dollar Bamk Paper

Mr. Fireside
Published in
4 min readMay 22, 2024



The Nakamoto Dollar ($NUSD) represents a pioneering leap in the Bitcoin DeFi ecosystem, promising a decentralized, bank-free, and trustless onchain economy. This white paper details the innovative mechanisms behind $NUSD, its strategic phases, and the broader implications for the Bitcoin ecosystem.


Bitcoin has long been celebrated for its decentralized nature, offering an alternative to traditional financial systems. However, despite its significant adoption, the onchain economy remains underutilized. The Nakamoto Dollar ($NUSD) seeks to address this gap by introducing a synthetic dollar fully integrated with Bitcoin’s onchain economy, eliminating the need for traditional banking infrastructure.

The Need for $NUSD

Stablecoins have become essential in the cryptocurrency market, providing a stable value reference amidst the volatility of digital assets. However, conventional stablecoins often rely on traditional banking systems, creating potential points of failure and dependency. $NUSD offers a revolutionary approach by anchoring its value directly to Bitcoin through a novel hedging mechanism, ensuring stability without the need for banks.

Phases of $NUSD Development

Phase 1: Bootstrap

The initial phase focuses on establishing the $NUSD ecosystem. This involves creating the infrastructure and community necessary to support the synthetic dollar. Key activities in this phase include:

- Developing the underlying smart contracts and protocols.

- Engaging early adopters and stakeholders.

- Ensuring security and robustness of the system.

Phase 2: Full Hedging Mechanism

In the second phase, $NUSD will achieve its full potential through a sophisticated hedging strategy. The synthetic dollar will be 100% hedged by simultaneously holding a long spot position of BTC and a short perpetuals position. This ensures that $NUSD remains stable and reliable, reflecting the value of the US dollar without direct exposure to the volatility of Bitcoin.

Decentralization and Comparison to Centralized Stablecoins

$NUSD represents a decentralized alternative to centralized stablecoins like Tether (USDT) and USD Coin (USDC) on Ethereum. Tether and USDC are controlled by specific entities — Tether Limited and Circle, respectively. This centralization means that these entities have control over the issuance, redemption, and potentially the freezing of assets.

In contrast, $NUSD is minted using Ethena’s ( sUSDe via a bridge locking mechanism, ensuring a decentralized approach. This initial step allows $NUSD to operate without a single point of control, making it immune to the risks associated with centralized entities. The decentralization of $NUSD ensures that no individual or organization can control the currency, providing true financial autonomy to its users.

The decentralized nature of $NUSD means that it is governed by the community of users, not by centralized entities. This aligns with the core principles of Bitcoin and ensures that the synthetic dollar remains a trustless and permissionless financial instrument.

Bitcoin’s Onchain Economy

Over 85% of BTC remains solely onchain, avoiding centralized exchanges and wrapped BTC on other chains. This indicates a strong preference among Bitcoiners for self-custody and trustless applications. $NUSD aligns perfectly with this ethos, offering a stablecoin that operates entirely within the Bitcoin ecosystem.

Unlocking Onchain Liquidity

$NUSD eliminates the need for traditional banking rails associated with conventional stablecoins. By putting a dollar onchain without ever touching a bank, $NUSD unlocks deeper onchain liquidity. This facilitates smoother transactions and interactions within the Bitcoin DeFi space, promoting a more robust and efficient financial ecosystem.

Initial Minting and Backing

On May 21, 2024, an initial 10,600 $NUSD was minted at Inscriptions 70937756 & 70847835. These were backed by $10,600 worth of sUSDe at 0xA284e606624e60d5e218cC2061bd85eD3E4f073f. This initial minting set the stage for $NUSD’s integration into the Bitcoin ecosystem, providing a solid foundation for future growth. $NUSD has been listed on OKX, and you can view and buy $NUSD [here]($NUSD).

Market Potential

BAMK ($BAMK), the platform behind $NUSD, opens up a $1.3 trillion BTC onchain economy, which is three times larger than the Ethereum altcoin market. With Open Interest continuing to grow year over year, and Bitcoin DeFi gaining momentum, the demand for a synthetic dollar native to Bitcoin is poised to increase significantly.


What is the difference between $NUSD and $BAMK?

$NUSD is the synthetic dollar, where 1 $NUSD equals $1. BAMK is the protocol/governance token.

What is BAMK ($BAMK)?

$BAMK is a Bitcoin Rune, meaning it is a memecoin cross-governance token. It is used as exposure by speculators to back the project and as an incentive for those who want to hold it and eventually help govern the project.

Who is behind BAMK? Is the team doxxed?

The team is not currently doxxed, but there is good information suggesting that the team will make themselves known soon enough.

Can I mint more NUSD synthetic dollars?

No, you cannot just mint more $NUSD. $NUSD is the upgraded 5-byte ticker for BRC20, only the address that holds the deploy inscription is able to mint more $NUSD. Anyone can buy $NUSD and assuming; some people have further questions about the minting of $NUSD, perhaps reach out to Bamk via Twitter DMs.

Valuable Links

For more information and to stay updated, visit the following links:

- [BAMK Twitter](

- [BAMK Website](

- [BAMK Telegram](

- [Community Directory](

- [Buy $BAMK on Magic Eden]( and [Buy $BAMK on Unisat](

- [Buy $NUSD on OKX]($NUSD) and [Buy $NUSD on Unisat](


The Nakamoto Dollar represents a groundbreaking advancement in the Bitcoin ecosystem, offering a stable, decentralized, and trustless alternative to traditional stablecoins. By leveraging innovative hedging strategies and remaining protocol agnostic, $NUSD is well-positioned to drive the next wave of growth in the Bitcoin DeFi era.

For further updates and detailed information, follow [@bamkfi]( and visit [](

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1. BAMK•OF•NAKAMOTO•DOLLAR. (2024, April 27). Twitter thread. Retrieved from

2. Hackernoon. (2024). BAMK: Pioneering the Nakamoto Dollar on Bitcoin. Retrieved from

3. BAMK. (2024). Official Website. Retrieved from [](

4. Hayes, A. (2024). Dust on Crust. Retrieved from

This post was sponsored by Crypto Content Producer Valerioshi:

Valerioshi’s Degen Reports on YouTube.

Valerioshi’s Degen Reports on Substack.

Valerioshi on X.