Recently, Openverse Network officially released the innovative VRC-12 protocol, aiming to reshape the underlying logic of the token economy, address the structural dilemmas of the existing token economy, and open up new paths for the compliant application of blockchain technology. It demonstrates significant potential, especially in the field of Real-World Assets tokenization (RWA).

Currently, the token economy faces numerous challenges. Over 90% of market tokens lack clear asset backing, leading to severe price fluctuations and frequent occurrences of fraudulent financing projects, thus triggering a serious trust crisis. Meanwhile, the conflict between regulatory compliance and technological innovation has hindered the application of blockchain technology in the real economy. The separation between the token economy and the real economy has also limited the commercial application scenarios of blockchain.

The Design and Features of VRC-12 Protocol

The VRC-12 protocol adheres to the core design concept of “asset anchoring + proof of  rights + compliant circulation”, which is highly consistent with the RWA concept. The protocol adopts a two-layer token model. The underlying main token, Bitgold, is aligned with the global gold reserve. It uses the DPoS (Delegated Proof of Stake) consensus mechanism to achieve value anchoring and serves as a stable value medium for real-world assets to be tokenized on the chain. The upper-layer equity-like token, Bitsecurity, represents the equity or revenue rights of enterprises. Enterprises issue Bitsecurity by staking Bitgold, and each Bitsecurity corresponds to a specific proportion of enterprise rights and interests, enabling the on-chain transfer and trading of assets.

In terms of the staking issuance mechanism, the VRC-12 protocol introduces a dynamic staking adjustment mechanism. Issuers are initially required to complete the first staking based on a “basic staking ratio of over 5%”. Subsequently, they can flexibly adjust the staking amount within the range of 5% – 50%. The staking period includes fixed-term (1/3/5 years) and flexible-term models. In the flexible-term model, enterprises can set staking unlocking conditions. Once these conditions are met, the staked assets can be redeemed in advance, improving the capital use efficiency. In addition, the locked Bitgold during the staking period can participate in the “staking mining” mechanism, providing additional income for issuers.

Compared with the traditional ERC-20 protocol, the VRC-12 protocol has significant differential competitiveness. It transforms from “unanchored issuance” to “asset binding”. Through the mandatory staking mechanism and equity anchoring rules, it eliminates the possibility of fraud and brings token issuance into the regulatory framework. It also evolves from “anonymous speculation” to “transparent supervision”, with built-in regulatory nodes to achieve real-time penetration of on-chain regulatory interfaces, full-process deposit of equity operations, and risk warning and asset isolation. The compliant guidance in naming and positioning reduces user misunderstandings, attracts compliant entities, and helps enterprises tokenize real assets quickly.

Bitsecurity, an important application of the VRC-12 protocol, has extensive application scenarios and value. It provides a new compliant financing channel for traditional enterprises. Small and medium-sized enterprises can reduce financing costs by over 70% and shorten the financing cycle to 1 – 3 months by issuing Bitsecurity. It can also be used for equity incentive and employee stock ownership plans, reducing management costs and enhancing incentive transparency. Moreover, it enables asset securitization, improves the liquidity of illiquid assets, and promotes cross-border investment and compliant circulation.

The Compliance and Risk Control Mechanisms

Openverse Network has established an on-chain and off-chain compliant coordination mechanism. Through the deep integration of government-level node embedding and smart contract regulatory interfaces, it realizes a three-dimensional compliant ecosystem of “on-chain automation + off-chain institutionalization”. In the future, it also plans to launch the “regulatory strategy blockchain” to promote the upgrade of the compliance system from “passive response” to “active prevention”.

In terms of ecological construction, Openverse Network will build a three-layer technical architecture of “underlying public chain + middleware + application layer”, establish cooperative relationships with global mainstream financial regulatory agencies, and expand the business ecosystem. Meanwhile, a sound risk control and guarantee mechanism has been established to prevent market risks, ensure the security of smart contracts, and avoid legal risks.

With the launch of the VRC-12 protocol, Openverse Network is expected to open a new era of global value circulation, promoting the transformation of the financial market from “institutional credit” to “technical credit”, from “regional fragmentation” to “global integration”, and from “elite exclusivity” to “public participation”, and building a new value order for the “on-chain global village”.