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BIP-100: Original Design

BIP: 100
Title: Bitmark Original Design - Fair Launch and Core Principles
Author: Bitmark Development Team
Status: Final
Type: Informational
Created: 2014-07-13
License: MIT

Abstract

This document describes the original design philosophy and technical parameters of Bitmark as launched on July 13, 2014. Bitmark was designed as a fair-launch cryptocurrency with a focus on accessibility, stability, and balanced stakeholder interests.

Motivation

In 2014, the cryptocurrency landscape was dominated by Bitcoin and its early forks. Many new cryptocurrencies launched with premines, instamines, or other mechanisms that concentrated initial supply in the hands of developers or early insiders.

Bitmark was conceived as an alternative approach: a cryptocurrency with a genuinely fair launch, designed to balance the interests of all participants—users, miners, investors, and developers.

The genesis block timestamp captures this philosophy:

"13/July/2014, with memory of the past, we look to the future. TDR"

Design Principles

Fair Distribution

  • No Premine: Zero coins were created before the public launch
  • No ICO/Token Sale: All coins distributed through proof-of-work mining
  • Earned Value: Every aspect of Bitmark focuses on earned, not allocated, value
  • Accessible Mining: Scrypt algorithm chosen for GPU accessibility (ASICs were not yet dominant for Scrypt in 2014)

Stakeholder Balance

Bitmark was explicitly designed to balance the interests of:

  1. Users: Fast confirmation times, low fees, stable operation
  2. Miners: Fair reward distribution, accessible mining
  3. Investors: Predictable monetary policy, no surprise emissions
  4. Developers: Sustainable development funding through community support

Technical Stability

  • Conservative Innovation: Implement proven technologies rather than experimental features
  • Reliability: Prioritize network stability over cutting-edge features
  • Longevity: Design for long-term operation and sustainability

Technical Specification

Genesis Block

ParameterValue
Timestamp1405274442 (July 13, 2014 12:00:42 UTC)
Message"13/July/2014, with memory of the past, we look to the future. TDR"
Hash0xc1fb746e87e89ae75bdec2ef0639a1f6786744639ce3d0ece1dcf979b79137cb
Merkle Root0xd4715adf41222fae3d4bf41af30c675bc27228233d0f3cfd4ae0ae1d3e760ba8
nBits0x1d00ffff
nNonce14385103
Initial Subsidy20 MARKS

Network Parameters

ParameterMainnetTestnet
Default Port926519265
RPC Port926619266
Message Magic0xf9beb4d90x0b110907
Address Prefix85 (b)130 (u)
PoW Limit2^224 - 12^248 - 1

Proof-of-Work

ParameterValueRationale
AlgorithmScryptGPU-accessible, ASIC-resistant (in 2014)
N Parameter1024Standard Litecoin parameters
r Parameter1
p Parameter1

Block Timing

ParameterValueComparison
Target Block Time120 seconds (2 minutes)Bitcoin: 600 seconds
Difficulty AdjustmentEvery 720 blocks~24 hours
Retarget Window720 blocks

The 2-minute block time was chosen as a balance between:

  • Fast enough for practical transaction confirmation
  • Slow enough to minimize orphan rates and ensure network stability
  • Compatible with existing mining pool infrastructure

Monetary Policy

ParameterValue
Maximum Supply~27,580,000 MARKS
Initial Block Reward20 MARKS
Halving Interval788,000 blocks (~3 years)
Interim Quartering394,000 blocks (~1.5 years)
Minimum Reward0.1 MARKS (after 18 halvings)

Reward Schedule (Pre-Fork)

The original reward schedule combined halving with interim quartering for smoother emission:

Block RangeSubsidy (MARKS)Note
0 - 393,99920Initial
394,000 - 787,99915First quartering
788,000 - 1,181,99910First halving
1,182,000 - 1,575,9997.5Second quartering
1,576,000 - 1,969,9995Second halving
......Continues with halving/quartering pattern

Rationale

Why Scrypt?

In July 2014, Scrypt offered several advantages:

  1. ASIC Resistance: Scrypt ASICs were just emerging; GPU mining was still viable
  2. Proven Security: Litecoin had operated safely with Scrypt since 2011
  3. Mining Accessibility: Consumer GPUs could participate effectively
  4. Pool Infrastructure: Existing Scrypt mining pools could support Bitmark

Why 2-Minute Blocks?

The 2-minute block time represents a careful trade-off:

  • Faster than Bitcoin (10 min): Better user experience for transaction confirmation
  • Slower than some altcoins (30-60 sec): Reduced orphan rate, better security
  • Network Propagation: Sufficient time for blocks to propagate globally
  • Miner Fairness: Reduces advantage of geographically proximate miners

Why Halving + Quartering?

The combined halving/quartering schedule provides:

  1. Smoother Emission Curve: Avoids dramatic reward cliffs
  2. Predictability: Regular, known reduction schedule
  3. Miner Adaptation: More time to adjust to reduced rewards
  4. Economic Stability: Gradual transition reduces market shock

Security Considerations

51% Attack Resistance

  • Scrypt's memory-hard properties increase attack costs
  • 2-minute blocks provide reasonable confirmation security
  • Network hashrate grew steadily post-launch

Fair Launch Verification

  • Genesis block publicly announced before mining began
  • No hidden mining period
  • Community-verified launch process

Backward Compatibility

This BIP documents the original protocol as launched. These parameters remained in effect until Fork 1 (BIP-101) at block 450,947.

See Also

References

This document is licensed under the MIT License.