Loka is a decentralized platform that enables retail investors to purchase Bitcoin at lower prices by providing liquidity to miners through tokenized forward hashrate contracts. This approach addresses the centralization of Bitcoin mining, allowing smaller miners to access capital and compete against larger entities, thereby promoting a more inclusive mining economy.
Funding
Funding not disclosed
Founders
Product
Problem
Bitcoin mining is becoming increasingly centralized, with a few large entities controlling a significant portion of the hashrate. Smaller miners face challenges in accessing capital and competing with these larger players, hindering the decentralization, security, and resilience of the Bitcoin network.
Solution
Loka provides a decentralized finance (DeFi) protocol that connects Bitcoin miners with investors, enabling miners to access upfront capital by selling tokenized forward hashrate contracts (Troves). This allows miners to scale operations without sacrificing equity or control. Investors gain exposure to mining rewards by purchasing Troves, providing a trustless, transparent, and flexible way to monetize hashrate. Loka also offers a decentralized mining pool that allows miners of all sizes to contribute hashrate and earn rewards without relying on centralized entities.
Target Audience
Loka targets Bitcoin miners seeking financing solutions and retail investors looking for cost-efficient access to Bitcoin, as well as institutional investors seeking exposure to Bitcoin mining rewards.
Features
- Tokenized forward hashrate contracts (Troves) that enable miners to access financing from investors
- Decentralized Mining Pool (DMP) that allows miners to contribute hashrate and earn rewards
- lokBTC: A native Bitcoin yield token that allows liquidity providers to earn returns by staking Bitcoin
- Overcollateralized contracts (110%) tokenized for secondary market trading
- Utilizes ckBTC, a 1:1 Bitcoin-backed digital twin powered by the Internet Computer’s Chain Fusion technology, for low-cost transactions
- Permissionless protocol providing non-custodial, trust-minimized access to Bitcoin