🏛️ bnPALN Platform

Bitcoin-Native Perpetual Appreciation-Linked Notes

🎯 Overview

bnPALN is BLGV's revolutionary Bitcoin-native perpetual financing platform that enables treasuries to raise USD liquidity against Bitcoin collateral without selling BTC or facing liquidation risk. As the 6th platform in the BLGV ecosystem, bnPALN serves as the financial foundation that enables sustainable operations across all platforms.

Live Treasury Demonstration: The platform currently showcases 83.12763270 BTC in actual BLGV treasury holdings, demonstrating institutional-scale capacity with a $9.12M+ vault at current Bitcoin prices.

Key Features

Bitcoin-Native Custody: Taproot/MuSig2 vault on Bitcoin L1
Non-Disposal Payout (NDP): Cash-only distributions, never sell BTC
Deterministic Rules: Algorithmic eligibility with transparent parameters
DLC Oracle Consensus: 2-of-3 independent price attestation
Perpetual Structure: No amortization or liquidation cascade

Production URL

Live Platform: https://paln.blgvbtc.com

🏗️ Architecture

Technology Stack

Frontend: Next.js 14 + TypeScript + Tailwind CSS
Backend: Rust services + Node.js proofs API
Database: SQLite with unified PostgreSQL integration
Oracles: 3 independent Rust services with DLC attestation
Custody: Bitcoin L1 Taproot vault with MuSig2
Assets: Taproot Assets for PALN token representation

Service Architecture

bnPALN Platform
├── Dashboard (Next.js)          # Public transparency interface
├── Proofs API (Node.js)         # State and proof verification
├── Keeper Service (Rust)        # Epoch orchestration and rules
├── Oracle Services (3x Rust)    # Independent price attestation
├── Asset Issuer (Rust)          # Taproot Asset management
├── Vault Tools (Rust)           # MuSig2 custody operations
├── Snapshotter (Rust)           # Holder snapshot generation
└── Fanout Service (Rust)        # Distribution execution

🔗 Ecosystem Integration

Strategic Role in BLGV Ecosystem

bnPALN serves as the financial engine that powers the entire BLGV ecosystem:

Treasury Foundation

Credit Line Replacement: Eliminates external debt dependencies
Operating Capital: Generates USD for ecosystem operations
BTC Preservation: Maintains full Bitcoin exposure for treasury growth

Cross-Platform Liquidity

DEX Integration: Best-execution routing through BLGV DEX when optimal
Pool Integration: Mining revenue contributes to BTC accumulation
Mobile Integration: bnPALN features accessible via mobile app
LSP Integration: Lightning distributions when technically feasible

Revenue Recycling

Platform Revenue Flows → Treasury → bnPALN → Operating Capital
├── DEX trading fees    →         →        → Platform development
├── Pool mining rewards →         →        → Infrastructure scaling  
├── LSP routing fees    →         →        → Market expansion
└── Mobile app revenue  →         →        → Ecosystem growth

Technical Integration Points

Unified API Integration

Webhook Events: Real-time state updates to unified API
Database Sync: bnPALN data integrated into unified PostgreSQL
Authentication: Shared auth system across all platforms
Monitoring: Unified monitoring and alerting infrastructure

SDK Integration

TypeScript SDK: Shared components with other platforms
Mobile SDK: bnPALN features in unified mobile app
API Contracts: Consistent interfaces across ecosystem

📊 Product Specifications

Core Parameters

Target LTV (τ): 25% maximum leverage ratio
Safety Buffer (β): 10 basis points safety margin
Distribution Cap (α): 20% of excess equity per distribution
TWAP Window (W): 6-hour price averaging window
Epoch Frequency: Weekly eligibility determinations
Oracle Quorum: 2-of-3 consensus requirement

Economic Model

Eligibility Criteria

Distributions occur only when both conditions are met:

Safety Band: Effective LTV ≤ 15% (25% target - 10% buffer)
New High: Current TWAP > High Water Mark

Distribution Calculation

Excess Equity = max(0, V* - D/τ)
Payout = min(α × Excess Equity, Payout Cap)
Encumbrance = Payout USD / TWAP Price

Non-Disposal Payout (NDP)

Cash Payment: USD distributed from T-bill reserves
BTC Encumbrance: Equivalent BTC marked as encumbered
No Sales: Bitcoin never sold or delivered
Release Mechanism: Encumbrance released via BTC re-accumulation

🎯 Use Cases & Applications

Primary Use Case: BLGV Treasury

Current Situation

BTC Holdings: 15.746 BTC (~$1.86M at current prices)
Credit Lines: External debt for initial BTC acquisition
Operating Needs: $500K-1M quarterly for ecosystem development
Growth Constraints: Limited liquidity without selling BTC

bnPALN Solution

Liquidity Access: $2.5M+ available at 25% LTV
Preserved Exposure: Full Bitcoin upside maintained
Sustainable Operations: Quarterly distributions fund ecosystem
Growth Enablement: Scale operations without external debt

External Applications

Corporate Treasuries

Bitcoin Holdings: Companies with significant BTC reserves
Operating Needs: Working capital without selling Bitcoin
Treasury Optimization: Enhanced yield on Bitcoin holdings

Investment Funds

Bitcoin Funds: Funds seeking enhanced returns on BTC
Family Offices: High-net-worth Bitcoin investors
Institutional Investors: Professional Bitcoin exposure

Strategic Partners

Mining Companies: Liquidity against mining reserves
Bitcoin Companies: Working capital for Bitcoin businesses
Financial Institutions: Bitcoin-native product offerings

📈 Growth Strategy

Phase 1: Internal Deployment (0-6 months)

Deploy for BLGV: $2.5M initial deployment
Eliminate Credit Lines: Replace external debt
Optimize Parameters: Fine-tune τ, β, α based on performance
Document Performance: Create case studies and metrics

Phase 2: Strategic Partnerships (6-12 months)

Partner Onboarding: 2-3 strategic treasury partners
Product Validation: Prove external market viability
Regulatory Framework: Establish compliance procedures
Technology Scaling: Optimize for multi-client deployment

Phase 3: Market Expansion (12-24 months)

Sales Organization: Professional business development
Product Variants: Different bnPALN structures for various needs
SaaS Platform: Multi-tenant technology infrastructure
Market Leadership: Industry-standard Bitcoin treasury financing

🛡️ Risk Management

Product Risk Framework

Market Risks

Bear Markets: Distributions pause automatically
Volatility: Conservative LTV limits exposure
Liquidity: T-bill reserves ensure distribution capability

Technical Risks

Oracle Failures: 2-of-3 consensus provides redundancy
Custody Risk: Enterprise-grade vault management
Smart Contract Risk: Bitcoin-native reduces protocol risk

Regulatory Risks

Securities Compliance: Treat PALN as security instrument
AML/KYC: Allowlisted transfers with compliance verification
Reporting: Comprehensive audit trail and transparency

Business Continuity

Operational Reserves: 6-month operating cash reserves
Revenue Diversification: Multiple ecosystem revenue streams
Strategic Partnerships: Multiple client relationships
Technology Resilience: Redundant infrastructure deployment

📋 Implementation Roadmap

Technical Milestones

Core Platform: Production deployment complete
Oracle Network: 3 independent oracles operational
Vault Infrastructure: MuSig2 custody implementation
Dashboard Interface: Public transparency dashboard
External Integration: Client onboarding system
SaaS Platform: Multi-tenant architecture

Business Milestones

Internal Deployment: BLGV treasury integration
Credit Line Elimination: Replace external debt
Partner Onboarding: Strategic partner deployment
Market Launch: External client acquisition
Revenue Scaling: $1M+ annual recurring revenue
Platform Leadership: Industry recognition and adoption

Regulatory Milestones

Compliance Framework: Basic regulatory structure
Legal Opinions: Securities law compliance validation
Audit Completion: Independent security and financial audits
Regulatory Engagement: Proactive regulator communication
Industry Standards: Participate in Bitcoin finance standards

🌟 Success Vision

6-Month Vision

BLGV operates debt-free with bnPALN providing sustainable operating capital, enabling aggressive ecosystem development and BTC-per-share growth.

12-Month Vision

bnPALN serves 10+ institutional treasuries with $50M+ AUM, establishing BLGV as the leader in Bitcoin-native treasury financing.

24-Month Vision

bnPALN operates as a full SaaS platform serving 100+ treasuries with $500M+ AUM, powering the global transition to Bitcoin-native corporate finance.

bnPALN transforms BLGV from a Bitcoin investment company into the infrastructure provider for the entire Bitcoin treasury economy, establishing sustainable competitive advantages and market leadership in the emerging Bitcoin financial sector.

🎯 Overview​

Key Features​

Production URL​

🏗️ Architecture​

Technology Stack​

Service Architecture​

🔗 Ecosystem Integration​

Strategic Role in BLGV Ecosystem​

Treasury Foundation​

Cross-Platform Liquidity​

Revenue Recycling​

Technical Integration Points​

Unified API Integration​

SDK Integration​

📊 Product Specifications​

Core Parameters​

Economic Model​

Eligibility Criteria​

Distribution Calculation​

Non-Disposal Payout (NDP)​

🎯 Use Cases & Applications​

Primary Use Case: BLGV Treasury​

Current Situation​

bnPALN Solution​

External Applications​

Corporate Treasuries​

Investment Funds​

Strategic Partners​

📈 Growth Strategy​

Phase 1: Internal Deployment (0-6 months)​

Phase 2: Strategic Partnerships (6-12 months)​

Phase 3: Market Expansion (12-24 months)​

🛡️ Risk Management​

Product Risk Framework​

Market Risks​

Technical Risks​

Regulatory Risks​

Business Continuity​

📋 Implementation Roadmap​

Technical Milestones​

Business Milestones​

Regulatory Milestones​

🌟 Success Vision​

6-Month Vision​

12-Month Vision​

24-Month Vision​