Latest update on Bitcoin Gold (October 24, 2017)
We would like to announce that the bitcoin split expected on October 24, 2017, has been advanced. We added the information that the distribution amount of Bitcoin Gold is decided based on a user’s Bitcoin balance and the number of positions at the time 491406th block is created, which is right before the split.
25 24, 2017, Bitcoin Gold an upcoming Bitcoin split will likely to take place. We are going to deal with this as follows to protect customers’ assets. We are not planning any suspension of services at this point.
Please refer to the following link for more details about Bitcoin Gold.
About Bitcoin Gold split
We are planning to provide Bitcoin Gold if a Bitcoin gold split occurs. However, if any of the following happens and we determine it’s difficult to protect customers assets or difficult for us to provide stable service we may not be able to provide Bitcoin Gold.
– In a case when we judge replay attack protection is not sufficient.
– When there’s not enough miners and process of block creation is unstable.
– In a case when there’s vulnerability, and there’s no adequate measure for it.
– In a case when we decide listing of Bitcoin Gold is inappropriate.
Bitcoin Gold distribution date
We are planning to distribute Bitcoin Gold after we confirmed its security and stability. We haven’t determined the specific date and time yet.
About Coincheck service operation
We are not planning any suspension of service. All services will be running as usual.
Details about Bitcoin Gold distribution
We will calculate an amount to be distributed base on a balance as of a creation date of last common block of Bitcoin and Bitcoin Gold.
Distribution of Bitcoin Gold will be determined when the split actually occurs. Bitcoin split may happen when block heights reach 491407 blocks (expected to happen on October 25, 2017).
We will provide Bitcoin Gold as follows to users who own Bitcoin (BTC) at the moment when the Bitcoin split occurs.
However, as explained in above when we determine it’s difficult to protect customers assets or difficult for us to provide stable service we may not provide Bitcoin Gold.
Subjected users and amount to be distributed
Bitcoin Gold will be distributed to users who have “Trading account”, “Coincheck payment account”, or “Coincheck lending account.” Also, the calculation method of actual distributed quantity varies depending on a condition of each account. Also, we may convert Bitcoin Gold into other currencies. In such case, we will determine conversion rate based on market rate.
Bitcoin Gold to be distributed = ( (Amount of Bitcoin you own) + (Amount of long position you hold) – (Amount of short position you hold) – (Amount of Bitcoin you’re borrowing) )
We will not provide Bitcoin gold if Bitcoin Gold to be distributed is negative.
Coincheck payment account
Bitcoin Gold to be distributed = (Amount of Bitcoin you own) * Distribution coefficient.
Coincheck lending account
Bitcoin Gold to be distributed = ( (Amount of Bitcoin you own) + (Amount of Bitcoin you’re applying for lending) + (Amount of Bitcoin you’re lending) ) * Distribution Coefficient
Amount of Bitcoin Gold to be distributed is not same as an amount of Bitcoin you own. We will calculate it by multiplying users transaction conditions and distribution coefficient.
Distribution Coefficient = 1 – (1) / (2)
(1) = Total amount of liabilities due to margin trading + Total amount of leveraged short position
(2) = Total amount of Bitcoin in trading account + Total amount of Bitcoin in Coincheck lending account + Total amount of Bitcoin in Coincheck Payment account + Total amount of leveraged long position
Bitcoin Gold distribution example
User A: Trading account
BTC owned: 80 BTC, Amount of long position: 4BTC, Amount of short position 2BTC, BTC borrowed due to margin trading: 1BTC
User B: Trading account
BTC owned: 1 BTC, Amount of short position 2 BTC, BTC borrowed due to margin trading: 4 BTC
User C: Payment account
BTC owned: 1 BTC
User D: Lending account
BTC owned: 4 BTC, Amount of Bitcoin you’re applying for lending: 2 BTC, Amount of Bitcoin you’re lending: 1 BTC
Distribution coefficient example
1 – (2 + 1 + 2 + 4) / (80 + 4 + 1 + 1 + 4 + 2 + 1)
Amount of Bitcoin Gold provided to User A:
(80 + 4 – 2 – 1) * 0.903 = 73.143 Bitcoin Gold
Amount of Bitcoin Gold provided to User B:
1 – 2 – 4 = -5 Bitcoin Gold
Since the amount of Bitcoin gold is less than 0, Bitcoin gold will not be provided.
Amount of Bitcoin Gold provided to User C:
1 * 0.903 = 0.903 Bitcoin Gold
Amount of Bitcoin Gold provided to User D:
(4 + 2 + 1) * 0.903 = 6.321 Bitcoin Gold
When we provide Bitcoin Gold
After split occurs, we will determine rather we distribute Bitcoin Gold or not. After our evaluation, we will add a new column that shows the distributed amount.
How we support Bitcoin Gold
We have not made any policy regarding deposit/withdrawal, and trading of Bitcoin Gold at this point. We will announce it once we decide details.
We will separately announce about Segwit2x at a later date.
We appreciate your understanding in advance.
* Time mentioned here is all in JST.