Proposal: PicoBitcoin (pBTC), fractionalized bitcoin derivative peg to 1/100,000 BTC

[clyevo]

To: The WBTC DAO and Governing Body
From: A Concerned DeFi Participant
Date: November 3, 2025

Objective
To propose the creation of a new ERC-20 token, pegged directly to 1/100,000th (0.00001) of one Bitcoin.
Based on current market data where Bitcoin is valued at approximately $107,069, each fractional token would hold an estimated value of approximately $1.07 USD. This design also mandates an industry-standard 18 decimals for optimal composability.

Key Advantages and Utility Cases

1. Enhanced Accessibility and Dollar-Pegged UX:

• By maintaining a price point close to $1 USD, this token democratizes Bitcoin exposure, allowing smaller investors to gain direct BTC-pegged exposure without dealing with high unit costs or complex fractional math.
• This near-dollar value significantly improves the user experience for casual DeFi participants, making it intuitive for trading pairs, collateral calculations, and tracking balances.

2. Superior DeFi Composability (Granular Transactions):

• Adopting 18 decimals eliminates compatibility risks and complex scaling logic for all existing DeFi protocols (lending, swapping, yield farming) that are hard-coded to assume standard Ethereum precision.
• Furthermore, the small, consistent unit value (~$1.07) is ideal for use in high-frequency, low-value transactions within DeFi applications, such as:
• Micro-payments: Facilitating near-free, low-value transfers.
• Accurate Yield Distribution: Enabling highly granular distribution of farming rewards, interest accrual, and fee calculations across large user bases without rounding errors.

3. Future-Proofing Liquidity:

• This token standardizes Bitcoin representation with other major ERC-20 assets (like WETH and most stablecoins), simplifying integration for all developers and accelerating the use of Bitcoin's value within the Ethereum ecosystem.
• This token is a technical refinement and product offering that significantly lowers the barrier to entry for Bitcoin ownership and expands its utility as a foundational asset across the Ethereum DeFi landscape.