Forks & Airdrop Policy

Lately, the emergence of "forks" and "airdrops" has created a new method for delivering perceived and real value to owners of existing digital currencies. The rapid development of new forks and airdrops has raised questions about how Bit2Me customers can count on the possibility of receiving this value or not. Each fork or airdrop faces technical, security, liquidity, and timing challenges. This document describes the issue and clarifies Bit2Me's policy on how it will handle forks.

Objectives

Security: The primary goal of Bit2Me is always security. Bit2Me will never introduce support for any fork that Bit2Me believes may be unsafe to do so. As forks have emerged over the past year, many have been launched quickly, with technical implementations that change rapidly until the launch of the new fork.

Value Preservation: Bit2Me also aims to preserve value for customers. When forks with significant value occur, Bit2Me will work with customers to try to deliver that new value to customers. It should be noted that Bit2Me may or may not support the currency in a wallet with all available functionalities with those security principles that Bit2Me generally tries to maintain. Bit2Me will provide customers with tools so they can access the currency and convert it into other forms of value.

Airdrops vs Forks

Definitions

• Airdrop: An airdrop is when a digital currency blockchain issues an additional amount of the new asset using known public keys or addresses from another blockchain, so that the private key holders of the original blockchain can access the value on the "airdropped" blockchain.
• Fork: A fork is a new form of digital currency that arises when a group of people decides to apply a new consensus layer to an existing blockchain. The result is the creation of a new blockchain, which can be very similar or very different from the original blockchain.

For the purposes of this document, Bit2Me treats Airdrops and Forks similarly. Bit2Me customers generally want to have access to all the value they can access, and whether the new value is delivered through an Airdrop or a Fork, Bit2Me's evaluation and support of that new value will be determined by the policy described in this document.

Regulatory Considerations

There are 5 criteria that are taken into account in Bit2Me's decision to handle a fork: technical stability, market capitalization, liquidity, cost, and time. 

Technical stability: Because security is our most important objective, the technical evaluation of any new fork or airdrop is critical. Bit2Me will support a fork if it considers the new fork to be technically stable and secure. This will be determined based on various factors, including:

• The technical team that creates the fork
• Whether the fork provides protection against replay attacks from the original fork
• Whether the fork provides protection against wiping out the original fork
• The strength of the new fork, its validation and mining capacity.

Market capitalization: Bit2Me will support a new fork or airdrop if the value within the fork or airdrop is significant. If it does not enter the top 10 exchanges by having a value of more than 100 million dollars globally, Bit2Me will probably not support it. It should be noted that in many cases, a new fork or airdrop may appear to have sufficient market capitalization, but may not have enough liquidity (see below).

Liquidity: In addition to having the right market value, the forked coin must have sufficient liquidity. A Bitcoin fork, for example, with a valuation of even $10 per coin would have a market capitalization of more than $160 million. However, if it is little traded, access to the coin's value would be an illusion for Bit2Me customers. For Bit2Me to support the currency, there must be enough liquidity in the market on reputable exchanges for a sustained period of time.
For Bit2Me to consider that the forked coin has a real value, it must have a daily liquidity of at least $25 million on recognized and reliable exchanges for a period of 14 days.

Cost: Supporting new currencies involves significant costs. Bit2Me's issuance of wallets for a currency fundamentally supports both the currency and its blockchain forever. Apparently, some forks are simple for Bit2Me to support. For example, if a forked coin is technologically the same as the original, it can be relatively inexpensive to add the new coin.

At the same time, some forks or airdrops may be technologically very different from the pre-existing supported currencies. For example, new coins or airdrops may be based on different cryptographic algorithms (RSA instead of Elliptic Curve), may have new transaction formats, block formats, multisignature features, or other changes. The greater the changes, the higher the cost of support and maintenance.

If a new fork is expensive, but has enough value for Bit2Me customers, the company will do its best to allow users access to the new currency. It should be noted that this may affect the timing in which Bit2Me can do so.

Time: New airdrops and forks are usually introduced with some notification before the airdrop or fork occurs. Sometimes the notification periods are very short, less than 8 weeks. There are also airdrops that are carried out in such a way that they will "expire" later, giving implementers very little time to claim them before the value is lost.

Much to our regret, Bit2Me cannot guarantee support for new forks or airdrops in a short period of time. Business obligations, developer availability, and cost are material factors, and security, testing, quality, and service are our main goals. While Bit2Me will do its best to make value available to its customers, the company cannot guarantee a specific timeframe when the exact considerations of future forks can be so varied.

Finally, if Bit2Me decides not to support a fork at a given time, it does not mean that Bit2Me will never support that fork. For example, at the time of launch, a fork may not meet the market capitalization of stability, or liquidity thresholds for Bit2Me to support it. In the future, if the fork becomes viable, Bit2Me may, at its discretion, support the fork or airdrop.

Principles: In the event of an upcoming modification to the Bitcoin Network or another applicable network that could potentially result in a fork of the Digital Asset Network or Airdrop, Bit2Me will do its best to provide the value of the forked Digital Asset to the customer. However, Bit2Me's primary concern is always the security of its existing Digital Assets. Bit2Me, at its own discretion, may choose to make the Digital Assets available to the customer or not. Furthermore, implementing or providing access to any Digital Asset created as a result of a Fork can take a considerable amount of time for Bit2Me. The Customer will indemnify Bit2Me for any direct, indirect, incidental, special, or consequential loss due to the inability to access any Digital Asset created as a result of a Fork or Airdrop.

In the event that Bit2Me considers a fork to be technically secure with sufficient market value and liquidity, but the customer wishes to access the fork before Bit2Me can support it due to cost or time considerations, Bit2Me will, in good faith, determine a product plan that allows the customer to access the value of the fork or airdrop in a way that the user, at their own risk, can access the currency.

Bit2Me reserves the right to update this policy and the criteria for measuring the viability of a Fork or Airdrop occasionally based on new technological, legal, or environmental factors that may arise.