1. Summary
Deprecate the manual loan flow for BRC-20 collateral and remove its creation path from the Liquidium.WTF application. Since BRC-20 loans exist only as Manual today (no Instant loans are available for BRC-20), this proposal removes new BRC-20 loan creation entirely. Existing BRC-20 manual loans and repayments remain unaffected until closure. This change simplifies the product surface, reduces dead offers and operational overhead, and reflects current usage patterns where BRC-20 borrowing and lending show negligible utilization relative to Ordinals and Runes.
2. Rationale
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Usage reality: BRC-20 manual loans account for a negligible share of platform activity; demand has effectively shifted toward other collateral types.
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User experience: Eliminating a low‑used path reduces confusion, shortens flows, and prevents users from engaging with illiquid orderbook segments.
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Operational efficiency: Removes maintenance for a redundant pathway (offer lifecycle, countersignature handling, edge cases), lowering support and engineering surface area.
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Market health: Consolidation away from thin BRC-20 books mitigates dead/manual offers and improves overall orderbook quality and predictable settlement in active markets.
3. Details
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Scope: BRC-20 collateral only. Ordinals and Runes loans (Manual and Instant, where applicable) are unchanged by this proposal.
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Deletions/Disables:
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Hide/disable creation of new BRC-20 manual loan offers and BRC-20 borrow requests in app & API.
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Cancel open BRC-20 manual offers at effective date. Lenders may focus liquidity on supported markets.
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Grandfathering: All active BRC-20 manual loans continue under existing terms until repaid/closed; repayments, extensions (if enabled), and liquidations proceed as today.
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Discounts/bonuses & fees: No change to existing platform fee schedule or LIQUIDIUM•TOKEN discount/bonus mechanics.
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Analytics & reporting: Publish post‑change metrics on collateral mix and fill‑rates during the first weeks after the effective date.
3.1 Backward Compatibility & Migration
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No action required for borrowers with active BRC-20 manual loans.
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Lenders with open BRC-20 manual offers will see them auto‑cancelled at the effective date and can redeploy capital to supported markets.
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Historical data for BRC-20 loans remains queryable in analytics and APIs.
4. Implementation
4.1 Timeline
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Discussion: October 13, 2025 → October 20, 2025 on forum.liquidium.org
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Voting: After discussion, voting will go live on Votico during October 20, 2025 → October 27, 2025
4.2 Governance & Eligibility
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Voting will be conducted on Votico. All LIQUIDIUM•TOKEN and STAKED•LIQUIDIUM holders are eligible to vote, with voting power proportional to holdings.
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To participate, hold LIQUIDIUM•TOKEN and/or STAKED•LIQUIDIUM in a compatible wallet and connect to the voting portal during the voting window.
5. Legal Disclaimer
The Liquidium Foundation is committed to regulatory compliance and adherence to applicable laws. Any governance proposal that is deemed to violate legal, regulatory, or compliance requirements may not be implemented. The Foundation reserves the right to seek legal or regulatory guidance before executing any proposed changes.
