B² Network: Put Bitcoin in Every AI’s Wallet
B² Network: Put Bitcoin in Every AI’s Wallet
Author: B² Network Team
Version: v2.0.0
Date: 2025.7.20
Abstract
With the rapid expansion of autonomous intelligent agents (AI Agents) in various on-chain and off-chain scenarios, providing secure, permissionless, highly liquid, and globally accepted settlement assets has become a core demand for the new generation of infrastructure. Bitcoin (BTC), as the most recognized and value-storing digital currency, has long been disconnected from the AI ecosystem. B² Network envisions "Put Bitcoin in every AI’s wallet" and proposes a modular architecture that integrates BTC natively into the AI economic cycle, mainly consisting of five subsystems:
Mining Squared — A new generation BTC mining pool with revenue routing capabilities, which automatically injects real-time mining rewards into programmable contracts, driven by DeFAI, continuously providing BTC liquidity and staking assets to the network.
B² Hub is a "Layer 1.5" hub located between the Bitcoin main chain and various Rollups. It is centered on PoSg (Proof of Signal + Stake) as the core consensus: merging forfeitable BTC/B2 staking with on-chain verified AI Signal dual-weighting, truly achieving "useful computation is a secure budget." On top of this, the Hub adopts an Application Sharding architecture, splitting the execution layer into horizontally scalable sub-chains/service shards, allowing various services such as EVM contracts, AI services, and data storage to run in parallel under the same validator set without interference. Thus, B² Hub inherits the economic confirmation of Bitcoin PoW, the interactive experience of BFT second-level block production, and the flexible scalability of modular blockchains, becoming a high-performance bridge between BTC value and Agentic AI productivity.
B² Rollup - A Bitcoin Rollup based on validity proofs, which submits batch data and state roots to the B² Hub and periodically anchors to the Bitcoin mainnet using Taproot, achieving both fast local confirmations and Layer 1 economic security.
DSN-AI - An Agentic AI layer driven by Signal, providing Agent-Native Account Abstraction (A-AA), Signal Bus, and model routing, enabling agents to register, delegate validators, send/receive signals, and natively hold assets.
U2 - A new generation of stable settlement and intelligent stablecoins using BTC assets as collateral, aimed at Agentic AI. Using BTC assets as collateral to unlock BTC liquidity; building an AI-driven "adaptive collateral ratio and liquidation" engine to more quickly, reasonably, and safely adapt to market conditions; providing on-chain micropayment channels for Agents, offering a natural settlement layer for AI-to-AI business models, which can be seen as the next generation of "AI-native dollars"; supporting bank card services to unlock more consumption scenarios.
This article systematically explains how the above components work together to build the "computing power - signal - staking - value - consumption" closed loop:
Mining rewards -> BTC staking -> PoSg consensus -> Final confirmation;
AI behavior -> Signal fees -> Validator scoring -> Consensus weight enhancement;
Rollup and applications -> AI-driven intelligent yield strategies -> Agent wallets and mining pools;
BTC collateral -> issue U2 -> payment -> Agents micropayment.
Through formal security analysis and economic model derivation, we prove that PoSg can maintain a level of economic security comparable to traditional PoS under adjustable α/β parameters, while effectively converting AI work into contributions to network security. The B² Network provides the first practical unified paradigm for "Bitcoin × AI × Modular," injecting native BTC liquidity and finality assurance into the global agent economy.
Keywords
Bitcoin, AI Agents, PoSg Consensus, Mining Squared, B² Hub, B² Rollup, Signal-Driven, Agent-Native Account Abstraction, Modular Blockchain.
Summary
Vision
Vision Review: "Put Bitcoin in Every AI’s Wallet."
In the next decade of the digital economy, AI Agents will evolve from passive executors to active market participants and value creators. They need a globally recognized, censorship-resistant, and highly liquid native asset to achieve autonomous settlement, collateralization, and incentive distribution. Bitcoin possesses these qualities but has long been disconnected from the AI ecosystem due to a lack of programmable bridges.
The core vision of B² Network is to bridge this gap—allowing every AI entity to natively hold, earn, and spend digital assets, thereby:
Empowering the Agent Economy
Using BTC as a unified value metric to simplify settlement friction across multiple chains and assets.
Enabling agents to automatically consolidate execution earnings, staking rewards, and service fees into the same asset pool, enhancing capital efficiency.
Enhancing Network Security and Sustainability
The "useful signals" generated by AI are quantified and injected into the PoSg consensus, allowing AI activity to directly translate into chain-level security contributions.
A three-spiral positive feedback loop forms between miner computing power, BTC staking, and AI signals: more computing power -> more BTC liquidity -> stronger security -> more AI adoption.
Promoting Deep Integration of Web3 and AI
Through Agent-Native Account Abstraction (A-AA), agents possess the same on-chain identity and permission model as humans.
Through Application Sharding and B² Rollup, a high-throughput, low-latency execution environment is provided for AI-native dApps, while inheriting Bitcoin's economic finality.
Provide on-chain micropayment channels for AI-to-AI through U2, bringing autonomous, fast, decentralized, and auditable payment channels to AI.
Building an Open, Composable Modular Ecosystem
Modules like Mining Squared, B² Hub, B² Rollup, and DSN-AI are decoupled and pluggable, facilitating integration by different developers as needed at various layers.
A unified BTC value base lowers the collaboration threshold across applications, stimulating innovation and capital influx.
With this vision, B² Network is committed to upgrading Bitcoin from "digital gold" to "fuel and settlement layer for AI," ensuring that every future intelligent interaction inherently carries the value and security of BTC, injecting lasting momentum into the decentralized economy built by humans and machines together.
Core Module Overview
Mining Squared
Mission and Positioning:
Upgrade traditional Bitcoin mining to a "yield as liquidity" channel, automatically injecting real-time BTC rewards into programmable contracts and staking pools.
Key Features
Mining rewards can be directly diverted to user or AI Agent wallets.
One-click earnings: Mining pool rewards can be obtained through DeFAI by selecting different strategies.
Supports computing power NFTs/derivatives, providing a secondary market for BTC Hashrate.
Coupling with Other Modules
Provides BTC staking and fee funds to B² Hub; invests assets into different strategies for yield through B² Rollup; conducts strategy evaluation and selection through DSN-AI, and automates participation in various strategies.
B² Hub
Mission and Positioning
A Layer 1.5 between Bitcoin Layer 1 and Rollup, serving as a consensus and data availability center, providing blockchain infrastructure for DSN-AI.
Key Features
PoSg (Proof of Signal + Stake): BTC/B2 staking + verified AI signals jointly determine voting power.
Application Sharding: Multiple applications run in parallel, with state isolation but shared security.
Threshold signature lightweight clients.
Taproot commitment to Bitcoin.
Coupling with Other Modules
Provides final confirmation and DA for B² Rollup.
Collects DSN-AI signals to enhance consensus security.
B² Rollup
Mission and Positioning
A high-throughput, EVM smart contract execution layer, anchored to Bitcoin through validity proofs.
Key Features
ZK/Validity batching + proof - data and state roots submitted to B² Hub, with finality periodically written to Bitcoin.
Low fees & high performance.
Supports EVM addresses and Bitcoin addresses.
Coupling with Other Modules
Relies on B² Hub's DA and PoSg final confirmation.
Provides a scalable execution environment for DeFi, NFTs, RWA, and other applications.
DSN-AI
Mission and Positioning
A signal-driven Agentic AI layer that allows AI to natively hold, earn, and spend digital assets.
Key Features
Agent-Native Account Abstraction (A-AA): Modular permissions, multi-signature, social recovery.
Signal bus: On-chain AI behavior, generating quantifiable signals.
MoE/Dispatcher routes complex reasoning tasks.
Coupling with Other Modules
The signals generated are used by B² Hub to weight PoSg.
On-chain native payments for AI-to-AI through U2.
U2
Mission and Positioning
U2 is a native stablecoin of the B² Network, optimized for Agent workloads: target price 1 U2 ≈ 1 USD, serving as a stable unit for AI tasks, data subscriptions, and service settlements. U2 combines the high security of BTC with the usability of USD within the same technology stack of B² Network, providing a predictable settlement currency for Agentic AI, offering efficient capital utilization and hedging tools for miners and stakers, and feeding back every economic activity of the stablecoin into the network security of PoSg through Signal scoring.
Key Features
Over-collateralization: Supports native BTC as collateral. Target collateralization ratio CR >= 150%, governance adjustable.
Anchoring Mechanism:
Minting/Redeeming: Users deposit collateral to open a vault to mint U2; U2 can be redeemed by destroying it at any time at the oracle price + fees.
AMO Market Making: The protocol's self-operated market making (AMO) maintains a buy-sell band of 1±ε (default ε=0.5%) across various DEXs.
Stability Fee: Interest is charged based on the debt size (annualized can be dynamically adjusted by RL-Tuner), used for risk and liquidity management.
Liquidation and Insurance: When CR falls below the liquidation line (e.g., 130%), auctions/buybacks are triggered; part of the penalty is injected into the insurance pool, shared with the PoSg Slash pool for risk control reserves.
Coupling with Other Modules
PoSg / Signal: The minting, redeeming, liquidation, and AMO transactions of U2 will generate Signal events and count towards the SignalScore of the corresponding delegated validators (fees are still paid in BTC/B2), mapping stablecoin usage behavior to consensus activity.
Mining Squared: Miners can choose to automatically convert a portion of their earnings into U2 for AI task budgeting or hedging; rBTC collateral can be used to mint U2 with one click, improving capital utilization.
DSN-AI / A-AA: Agents can set stable budgets in U2 within the A-AA wallet (e.g., "daily 50 U2 model expenses"); during execution, the router converts U2 <-> BTC as needed to pay for Gas, reducing price volatility's impact on workflows.
B² Rollup Applications: DeFi, payment, and subscription dApps can use U2 as a user-facing pricing currency while enjoying the PoW finality and cross-Shard atomic interoperability of the Hub.
Value Proposition
B² Network tightly couples the global consensus value of Bitcoin, the powerful productivity of AI agents, and the flexible scalability of modular blockchain: through Mining Squared, real-time mining rewards are directly injected into the network, providing a continuous flow of BTC liquidity for validators' staking and agent wallets; leveraging the PoSg consensus mechanism, the combination of "BTC/B2 staking + verified AI signals" is transformed into voting rights, directly mapping the useful work of AI into chain-level security budgets; under the application sharding of B² Hub and the validity proof of B² Rollup, it achieves dual finality with second-level local finality and periodic anchoring to the Bitcoin mainnet, while supporting the free assembly of any VM, sub-chains, and permissioned modules. Miners can participate simply by switching their revenue routing, and AI developers can quickly deploy based on familiar development stacks, achieving low barriers to entry, high throughput execution, and economic security, truly realizing "Put Bitcoin in every AI’s wallet" as a self-circulating flywheel that integrates computing power, signals, and value, creating a new ecosystem of "Bitcoin + AI + Modular Stack."
Opportunities
In B² Network, different participants can find new momentum within the value closed loop of "mining power—BTC staking—signal-driven—modular execution."
For developers, the Application Sharding and Rollup SDK of B² Hub lower the barriers to on-chain deployment, and native BTC settlement eliminates cross-chain friction; with the signal API and A-AA wallet, any off-chain event can be transformed into an agent trigger, allowing for rapid deployment of high-speed payments, blockchain games, and high-frequency DeFi derivatives, all earning BTC fees through the shortest path.
Miners and computing power providers can route real-time mining rewards to the PoSg staking pool with one click through Mining Squared, continuing PoW income while adding consensus rewards and signal incentives; computing power can also be packaged as "computing power LSD" or delegated services, attracting DeFi and AI funds, creating additional revenue channels for small and medium miners.
AI service providers and model suppliers can package each model call, inference result, or data labeling into billable signals, receiving BTC payments in real-time; at the same time, the signal weight will be converted into voting rights for their delegated validators, directly transforming "useful AI work" into contributions to network security and bringing additional rewards to cooperative nodes.
Financial institutions can design new yield curves and structured products around PoSg staking and the signal market, providing BTC staking loans, hedging tools, and custody services for mining pools and validators; on B² Rollup, they can also issue stablecoins, notes, or leveraged products collateralized by BTC, achieving an efficient combination of on-chain settlement and off-chain clearing.
In summary, B² Network opens up multidimensional opportunities for developers, miners, AI suppliers, and financial institutions in technology, revenue, business, and financial innovation, collectively driving the positive flywheel of the "Bitcoin + AI + Modular" ecosystem.
Introduction
Background
For more than a decade, Bitcoin has accumulated the strongest monetary-level consensus and a market value of over $1 trillion as decentralized digital gold. However, its capital efficiency has been constrained by three structural factors: (1) low on-chain throughput, with the Base Layer capable of processing only about 7 transactions per second, which cannot support large-scale payments; (2) weak scripting capabilities, as the native UTXO script lacks Turing completeness and account abstraction, making it difficult to implement advanced financial primitives such as DeFi, derivatives, and stablecoins; (3) a single revenue channel, where holders have few sustainable on-chain earning scenarios aside from long-term appreciation, resulting in millions of BTC sitting idle in cold wallets. This "high market value, low activity" contradiction is widely referred to as Bitcoin Capital Inefficiency.
In stark contrast, the generative AI and autonomous agent economy has seen exponential growth over the past three years: ChatGPT has driven the popularity of LLMs, and Agent-Framework and Auto-Everything enable AI to perceive, reason, decide, and execute without human intervention. Global AI service spending has surged from less than $20 billion in 2022 to an estimated over $200 billion by 2025. A vast number of agents frequently exchange data, invoke models, and settle computing and bandwidth costs between cloud and IoT nodes, creating an urgent need for a neutral, permissionless, highly liquid global settlement asset that can be natively held by machines.
In reality, these two rapidly developing tracks have little intersection:
Existing AI task settlements mainly rely on centralized payments or USD stablecoins, unable to enjoy Bitcoin's monetary attributes of "absolute scarcity, censorship resistance, and cross-border accessibility";
Layer 2 solutions like Lightning focus on peer-to-peer payments, making it difficult to meet the needs of complex contracts and large-scale state synchronization;
Emerging solutions like Bitcoin Rollup and BitVM are still in the early experimental stage and have not yet formed a one-stop solution aimed at AI.
Therefore, "how to let the value and security of Bitcoin serve the AI economy" and "how to allow the real useful work of AI to feed back into the security and revenue of the Bitcoin network" have become dual challenges facing developers and researchers, as well as the goals of the B² Network's advancement.
Why AI Needs Bitcoin
Global Permissionless Value Settlement Layer
Autonomous agents perform tasks in every corner of the internet—scraping data, calling models, renting GPUs, purchasing APIs—if they rely on centralized payment interfaces, they face not only geographical and regulatory barriers but also service interruptions due to account freezes, exchange restrictions, and KYC limitations. Bitcoin transactions on-chain require no permission and operate around the clock, naturally aligning with machines' needs for 24×7 settlement and cross-border collaboration.
Finality and Anti-Censorship Guarantee Execution Certainty
AI Agent transactions are typically triggered in milliseconds, but once a rollback or chargeback occurs, the upper decision chain collapses. Bitcoin's PoW provides the highest economic finality in the industry—once a block is confirmed, the cost of tampering is extremely high; combined with B² Network's Layer 1.5 early finality, Agents can achieve "high probability finality" in seconds and "absolute finality" in minutes.
Value Stability and Inflation Hedge
Most AI service revenues are denominated in USD or fiat stablecoins, exposing them to long-term inflation risks. BTC, with a fixed supply cap of 21 million coins and a halving issuance mechanism, provides an anti-inflation asset pool for AI companies and agents; in a high-volatility environment, holding some BTC can also hedge against stablecoin decoupling or regulatory pressure.
Machine Verifiable and Programmable Wallet Primitives
Bitcoin UTXO is naturally suited for implementing auditable and composable machine wallets on-chain. Coupled with B² Network's Agent-Native Account Abstraction (A-AA), Agents can flexibly manage multi-signatures, time locks, social recovery, and other permissions under the same address without complex bridging and cross-chain mapping.
Incentives and Security Coupling
In the PoSg design, signals generated by AI directly affect validators' voting power; the more "useful work" an Agent performs, the greater the weight supporting network security, which in turn enhances the safety of Agent funds and execution availability, forming a positive feedback loop of "security-incentive."
Micro-Payments and Batch Settlement Efficiency
Bitcoin Layer 2 (Lightning, Rollup ecosystem) has proven that BTC can support millisecond-level, low-cost micro-payments. B² Hub introduces Application Sharding and aggregated batch submissions, compressing a series of micro-transactions into a single Taproot proof written to L1, significantly reducing on-chain costs, allowing AI Agents to confidently perform high-frequency calls.
Ecosystem and Liquidity Spillover Effects
BTC accounts for over 40% of the total cryptocurrency market cap and has the broadest base of holders. Pricing AI fees, rewards, staking, and DeFi primitives in BTC can directly inherit its global liquidity and deep derivatives market, opening up richer financing and hedging tools for Agents and their operators.
In short, Bitcoin provides the AI economy with censorship-resistant value storage, programmable machine assets, strong finality, and global liquidity. Through B² Network's modular stack, these features can be deeply integrated with high-performance execution layers, signal-driven consensus, and AI-native account systems, making it possible for "every AI wallet to securely and efficiently hold and use BTC."
Limitations of the Current Solutions
Although the Bitcoin ecosystem and the AI field have been attempting to address the issues of value settlement and computational synergy through their respective Layer 2 or sidechain expansions, as well as on-chain AI frameworks in recent years, there remains a significant gap in achieving the goal of "enabling AI to natively use BTC," primarily manifested in the following five points:
Payment-oriented Layer 2 is difficult to support complex states
The Lightning Network relies on multi-hop channels, state maintenance, and offline counterpart collaboration; once an off-chain channel fails or a counterpart maliciously goes offline, the AI Agent must revert to L1 settlement, making the process overly complex and the delays unpredictable.
Existing upgrade solutions like Ark and Eltoo focus on single payment use cases and lack native support for complex smart contracts, multi-asset settlements, and cross-Agent atomic composite transactions.
Emerging Bitcoin Rollups and BitVM are still in the experimental stage
Most Bitcoin Rollup solutions (Rollkit-BTC, Botanix, Merlin, etc.) have not yet validated their data availability and security models on the mainnet, and there is a scarcity of available tools, SDKs, and developer ecosystems.
BitVM achieves general computation through off-chain execution + Taproot dispute resolution, but it has a high number of interaction rounds and a long dispute window, making it unsuitable as a real-time settlement layer for high-frequency AI calls.
AI × Blockchain projects generally rely on ERC-20 or custom tokens
Projects like Fetch.ai, Bittensor, and Autonolas mostly issue new tokens as billing and incentive units, which, while facilitating the creation of economic models, disconnect Bitcoin's liquidity and reintroduce fiat currency exchange and regulatory risks.
The consensus security of these projects is not directly coupled with BTC, making it impossible to leverage Bitcoin's PoW economic finality to protect large amounts of funds.
Lack of machine-friendly account abstraction and a "work equals security" closed loop
Existing on-chain account models are mostly based on EOA or contract accounts, with permission configurations and recovery processes often designed for human users, failing to meet the key management and permission layering needs of large-scale Agent automation scenarios.
The connection between staking weight and real on-chain work is weak, making it impossible to directly convert the "useful signals" of AI Agents into the network's security budget.
Cross-chain bridges and multi-asset mental burden
AI task execution often spans cloud vendors and cross-chain environments; if frequent exchanges between various assets like ETH, USDC, USDT, and FET are necessary, it not only leads to price slippage and liquidity fragmentation but also expands compliance and hacking risk exposure.
Bridging protocols (multi-signature bridges, light client bridges) are frequently attacked, exposing highly automated Agent systems to uncontrollable black swan risks.
Lack of AI-oriented payment channels for stablecoins based on Bitcoin's native properties
Price exposure and budget uncertainty: Directly priced in BTC, the per-instance/streaming fees for AI tasks are affected by price fluctuations, making it difficult to control cost ceilings and long-term budgets.
Dual-currency friction: Applications priced in stablecoins while Gas is paid in BTC/B2 require agents to frequently exchange small amounts and replenish, leading to slippage, failed retries, and counterparty risk.
Micropayments/high-frequency unfriendly: Existing channels lack primitives for machine-oriented streaming payments, limits/rates, and batch settlements, making costs and confirmation delays uncontrollable for sub-dollar level high-frequency calls during congestion.
Finality and audit disconnection: The finality of multi-chain stablecoins relies on other chains or custodians, making it impossible to anchor settlement evidence stably to Bitcoin, resulting in insufficient institutional-level reconciliation and traceability.
Therefore, the current ecosystem either sacrifices Bitcoin's native security and liquidity or fails to meet the high-frequency, complex, multi-party interaction needs of AI Agents. B² Network specifically addresses these pain points by directly integrating BTC into the AI settlement path and merging "BTC staking + AI signals" into the same security budget through PoSg consensus, filling the gaps in existing solutions.
Summary
Bitcoin possesses the global liquidity, censorship resistance, and strong finality that the AI economy urgently needs, but due to insufficient scalability and contract capabilities, it forms a "value island" in the AI world. Existing cross-chain or spontaneous token solutions cannot simultaneously ensure security, support complex states, and maintain BTC's native liquidity. B² Network aims to break this barrier by building a new type of infrastructure that directly introduces U2 issued with BTC as collateral into AI settlement, allowing useful AI work to contribute back to on-chain security.
Overview
System Architecture Overview Diagram
Module Description and Role Positioning
B² Network consists of five interconnected core modules. Each has its own responsibilities and forms a closed loop through BTC value flow and Signal control flow.
Mining Squared is responsible for automatically aggregating and routing the BTC earnings mined by miners in real-time. Hashrate providers submit their hash rates, and the earnings routing contract distributes BTC according to a preset ratio: part of it goes directly into the validator's staking pool, while another part can be credited to the agent's account. This module maintains full compatibility with Bitcoin's PoW consensus while providing a continuous source of liquidity for the upper layer.
B² Hub is the Layer 1.5 hub of the system. It adopts a PoSg (Stake + Signal) consensus, operating under the same set of validators with Application Sharding to achieve parallel sub-chains. Validators run PoSg nodes, while agents delegate their SignalScore to target validators, influencing their voting power. The Hub is also responsible for periodically writing the sharded DA root into Bitcoin Layer 1 using Taproot, thus achieving both second-level BFT finality and mainnet-level economic finality.
B² Rollup provides a computationally intensive or contract-complex execution environment. The Sequencer aggregates transactions and generates ZK/Validity proofs, then submits the batch data to B² Hub. All fees in the Rollup are directly priced in BTC, allowing dApps to enjoy high TPS and rich contract functionalities without introducing additional tokens.
The DSN-AI layer is aimed at the agent ecosystem. The Signal Bus transforms on-chain events into billable signals, and Agent-Native Account Abstraction (A-AA) allows each agent to have a programmable BTC wallet and permission system. Model providers can package inference services into subscribable Signals; agents obtain task-driven incentives by sending or receiving signals while returning the paid BTC and signal weight to their delegated validators.
U2 is the native stable settlement layer of the network. It uses BTC as over-collateral (target collateralization rate ≥150%) and stabilizes the exchange rate of 1 U2 ≈ 1 USD through oracles. The AI-driven liquidation engine automatically adjusts collateral rates and liquidation parameters based on market fluctuations, ensuring system robustness. U2 provides Agents with a price-stable micropayment channel—AI tasks can be accurately priced without being affected by BTC volatility. At the same time, operations such as minting, redeeming, and liquidating U2 generate Signal events, which are counted towards the validators' SignalScore, directly mapping stablecoin activities to network security contributions. Through the AMO (protocol-owned market making) mechanism, U2 maintains deep liquidity across various DEXs and supports traditional payment channels such as bank cards, bridging on-chain and off-chain consumption scenarios.
The overall role distribution is as follows:
Miners inject computing power earnings into the network through Mining Squared;
Validators maintain PoSg consensus in B² Hub and receive additional rewards based on Signal activity;
AI agents register, delegate, and settle tasks in BTC on DSN-AI, with the generated signals enhancing the voting power of their dependent validators;
Developers can deploy applications on Rollup or Hub sub-chains, using BTC directly as Gas and incentives;
The mortgagor locks BTC to mint U2, releasing liquidity while retaining the appreciation potential of BTC;
The liquidator monitors the collateral ratio, provides liquidity when the system needs it, and earns liquidation rewards;
End users or institutions interact with the entire stack through agents or front ends, enjoying "BTC-native AI services and financial primitives."
In this way, computing power - staking - signals - execution layer - payments are tightly coupled, forming a self-driven growth flywheel.
Data and Value Flow
In B² Network, BTC flow, Signal flow, and proof flow act like three parallel blood vessels, weaving computing power, staking, security, and execution layers into a closed loop. Below, we will explain their paths, key milestones, and interactions one by one.
BTC Flow
Source: Mining Squared
Miners submit computing power -> Real-time mined BTC enters the Mining Squared revenue pool.
Revenue routing contracts split according to strategy:
Automatically staked in the B² Hub's Staking Module;
Directly deposited into Agent-Native wallets as needed, providing startup funds for agents;
Some can choose to collateralize and mint U2 to obtain stable liquidity.
Staking and Consensus
Staked BTC is locked in the Staking Module, generating corresponding Stake shares.
Stake, along with subsequent SignalScore, determines the Voting Power of validators, participating in PoSg block production and earning block fees.
U2 Minting and Circulation
BTC collateral minting: Users/miners can lock BTC in the Vault contract, minting U2 based on oracle prices and collateralization ratios (≥150%).
Liquidity release: Minted U2 can be used for:
AI Agent task payments (inference fees, data subscriptions, computing power rentals)
DEX liquidity provision, earning trading fees
A stable pricing unit for inter-institutional settlements
Value return: The Signal weight generated from U2 usage feeds back into the PoSg consensus, enhancing network security.
Fees and Profit Sharing
Rollup and various Shard dApps pay Gas in BTC or U2; these fees are shared among PoSg validators based on weight.
U2 related fees:
Stability Fee: Interest charged based on debt size, flowing into the risk reserve pool
Liquidation penalty: The portion of the liquidation penalty when collateralization is insufficient enters the insurance pool
AMO market-making revenue: Trading fees generated from liquidity controlled by the protocol flow back into the system
Validators can choose to re-stake their profits, mint U2, or distribute them externally, forming a positive cycle of "revenue -> staking/U2 -> more revenue."
Liquidation and Risk Management
When the BTC price drops, causing the collateralization ratio to fall below 130%, a liquidation auction is triggered.
Liquidators use U2 to purchase discounted BTC, maintaining the system's solvency.
Liquidation profit: BTC price difference - U2 cost = liquidation profit, incentivizing market participants to actively maintain system health.
Exit and Liquidity
BTC Path:
Unlocking staked BTC requires waiting for a freeze period; unlocked BTC can be returned to miners or used by Agents for new business expenses.
U2 debt redemption: Destroy U2 + pay stability fee to retrieve the collateralized BTC.
U2 Path:
Exchange for BTC or other assets through AMO on DEX
Used for payments for various services within the network (no need for exchange)
Exchange for fiat currency consumption through bank card channels
Through Lightning, CEX, or on-chain bridging, users can transfer BTC/U2 back to external ecosystems at any time, ensuring high liquidity.
Compound Revenue Cycle
Mining Squared revenue → BTC collateral → Minting U2 → AI payments/DeFi revenue → More BTC accumulation
Signal generated from U2 circulation → Enhances validator weight → Earns more block rewards → Increases BTC revenue
Forming a triple revenue model of "BTC-based appreciation + U2 liquidity revenue + Signal network rewards."
Thus, the BTC flow not only includes the staking and circulation of native BTC but also creates a parallel value circulation system through the U2 stablecoin—BTC provides value anchoring, while U2 offers liquidity and stable pricing. The two are deeply coupled through collateralization/redemption mechanisms and Signal incentives, jointly supporting the economic activities of the entire network.
Signal Flow
Generation and Submission
After completing tasks at the DSN-AI layer, the AI Agent calls submitSignal() to put the event summary, weight, and proof on-chain.
The Sender and each Receiver must be registered Agents, each delegated to the target validator.
Verification and Scoring
The SignalRouter of B² Hub checks signatures, fees, validity, and proof.
Upon passing, the corresponding validators of the sender and receiver each accumulate weight to their SignalScore.
Transaction fees (i.e., weight) are paid in a lump sum by the sender to prevent spam signals.
Impact on Consensus
The end of the Epoch snapshots Stake and SignalScore; PoSg recalculates validator weight with VP = α·Stake + β·SignalScore.
Validators of active Agents have a higher probability of block production in the next Epoch and receive more block rewards, incentivizing Agents to continue generating "useful signals."
Business Trigger
The Signal Bus broadcasts events to subscribed sub-chains or off-chain services, triggering Rollup contract execution, model routing calls, or external APIs.
The composability of the entire chain is established: signals act as schedulers, linking on-chain state changes with off-chain AI services.
Proof Flow
Rollup Batch Proof
Sequencer aggregates user transactions -> generates batches and ZK/Validity proofs.
The proof is submitted along with batch data to the corresponding Shard of the B² Hub, which verifies it and provides a finality with seconds-level BFT.
Data Availability (DA) Commitment
All transaction data from Shards/Rollups is sliced, erasure-coded, and then generates a Namespace Merkle Tree root (NMT root).
Every 10 minutes, these roots are aggregated + threshold signatures, packaged into a Taproot transaction, and written to Bitcoin Layer 1.
Light clients only need to verify the threshold signatures and Bitcoin blocks, thus trusting the upper layer state.
Proof Feedback and Challenges
If the ZK proof is invalid or data is lost, any node can submit fraud evidence; PoSg validators will execute a slash on malicious batches.
The proof flow thus bears the dual responsibility of "state correctness + data availability."
BTC flow converts computational power gains into a loop of staking and transaction fees, providing economic security and liquidity.
Signal flow maps the actual work of AI into voting rights, directly enhancing chain-level security and driving application interactivity.
Proof flow ensures correct execution, data availability, and ultimately anchors all sub-chain states to the Bitcoin main chain.
The three flows intertwine to form a closed loop: BTC gains new revenue scenarios while empowering AI, the useful signals from AI enhance the security margin of BTC staking, and the proof mechanism encapsulates all of this under the strong finality of Bitcoin PoW, achieving a self-consistent cycle of "value-data-security."
Lifecycle
TODO IMAGE: Register -> Stake -> Signal -> Consensus -> Commit to Bitcoin
Register
Validators: Run nodes, register public keys, endpoints, and reward addresses on the B² Hub chain, and receive a Validator ID.
Agents: AI Agents register A-AA accounts on the Agent Registry chain and choose to delegate to a specific validator; once registered, they can hold BTC/B2 and call the Signal API.
Stake / Delegate
Location: Users (individuals, miners, institutions, Agents) deposit BTC or B2 into the staking contract of the B² Rollup. Assets are held in escrow at the Rollup layer but are mapped on-chain as StakingShare.
Delegation Logic: Stakers can delegate any share to different validators, supporting "one stake, multiple validator allocation"; changes take effect in the next Epoch.
Mining Squared and DeFAI:
DeFAI acts as a strategy aggregator, running a set of agents to dynamically allocate funds across multiple DeFi scenarios (market making, lending, liquid staking, etc.);
B² Hub staking is one option in the DeFAI strategy pool—when the PoSg yield is higher than external protocols, Agents will automatically convert part of the funds into StakingShare and delegate to the most profitable validator;
The comprehensive yield from DeFAI flows back to the stakers or is reinvested.
Signal
After executing tasks, agents call submitSignal(), packaging event summaries, weights, and proofs.
B² Hub verifies signatures, fees, and proofs; upon approval, the validators delegated by both the sender and receiver accumulate SignalScore according to weight.
The sender bears all costs (to prevent spam), and the receiver must ACK on-chain to score.
Consensus (PoSg Epoch Loop)
Snapshot: Freeze the current StakeMap and SignalPool;
ValidatorSet Update: Select the top N nodes with the highest weight according to VP = α·Stake + β·SignalScore;
Threshold Key Generation: The new validator set runs FROST DKG;
CometBFT Block Production: Weighted proposals, 2–3 seconds finality;
Reward / Slash: Block fees + signal rewards are distributed according to VP; double signing or data availability violations trigger slashing.
Commit to Bitcoin
All transactions from Shard/Rollup generate NMT roots through slicing and erasure coding;
B² Hub aggregates root hashes and threshold signatures approximately every 10 minutes, writing a Taproot transaction;
Light clients only need to verify this transaction to obtain PoW finality of the on-chain state.
Summary
Users stake BTC/B2 in the B² Rollup and freely delegate to validators;
DeFAI dynamically migrates funds between multiple strategies through Agents, with "B² Hub staking" being one optional strategy in the yield pool;
Signals convert useful AI work into validator weight; PoSg achieves consensus in seconds, subsequently granting economic finality through Bitcoin PoW.
This forms a cycle of "Stake -> Signal -> Consensus -> Yield -> Re-stake/Redistribute," connecting external DeFi with the B² Network ecosystem, continuously amplifying the synergy between BTC and AI.
Core Concepts and Terminology
Signal / SignalScore
Signal
In the B² Network, a Signal refers to an event message generated by an AI Agent and verified on-chain. It maps "useful AI work" to measurable economic value and directly impacts consensus security. Each Signal contains the following core fields:
id: keccak256(sender‖nonce‖timestamp)
senderAgent: Registered A-AA address
receiverAgents: List of at least 1 registered Agent
weight: Economic weight of the Signal (in sat)
expiry: Expiry block height
payloadHash: Task result or data summary
proof: Verifiable proof (ZK-SNARK / signature aggregation / hash pre-image, etc.)
sig: Schnorr/ECDSA signature of senderAgent
Economic implications:
weight is considered a one-time signal fee. Once paid by the sender, it is either burned or allocated to the block validators, providing income while preventing spam.
The validators delegated by both the sender and each receiver will count this weight towards SignalScore, creating a two-way incentive.
Signal Lifecycle
Generation: The Agent completes reasoning, off-chain calls, or data labeling, constructs the Signal, and pays the weight.
Submission: Calls the submitSignal() transaction, specifying the list of receivers.
Verification: B² Hub checks
Whether the sender/receiver is registered and the delegation is valid
weight ≥ minSignalFee and does not exceed MAX_WEIGHT
Signature, proof, uniqueness, and not expired
ACK: The receiving Agent confirms on-chain (ackSignal(id)); otherwise, it does not count towards their validator score.
Scoring:
Validators delegated by the sender: + weight
Validators delegated by each receiver: + weight / n (default evenly distributed, customizable ratio)
All verified Signals enter the SignalPool, waiting for unified settlement at the end of the Epoch.
SignalScore
For any validator v:
Where $\mathcal{D}_v$ is the set of all Agents delegated to v, and $\mathcal{W}$ is the set of Signals related to these Agents in the most recent M Epochs.
The scoring window M (e.g., 24 h or 168 h) is adjustable in governance, smoothing noise and preventing one-time score manipulation.
The system sets a hard upper limit: $\text{SignalScore}_v \le k \times \text{Stake}_v$ (typical k = 3), to avoid zero-stake signal monopolization.
Role in PoSg:
The consensus layer is defined by the formula
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