Carried on a single distributed ledger exist several currencies with different uses. The properties of each currency shape the ways in which it is used — a design the project termed a “Multicurrency.”
Breakout Chain is a global payment system with minute transaction fees. It allows users to send money anywhere in the world instantly and directly to a recipient, without any middlemen. Carried on a single distributed ledger, known as a blockchain, exist several currencies with different uses.
At the heart of the Breakout Chain “Multicurrency” system is the currency Breakout Coin (ticker: BRK). It is the Breakout Chain currency designated for payments, issuances of colored coins, pegged currencies, and used to fuel the smart-contract system.
Alongside Breakout Coin is another currency called Breakout Stake (BRX). Breakout Stake owners have the right to validate blocks of Breakout Chain ledger entries. For each block, the validator is permitted to claim a reward for performing the validation.
Breakout Chain is a hybrid Proof-of-Work / Proof-of-Stake (PoW/PoS) blockchain. Unlike other PoW/PoS hybrids, however, in Breakout Chain the two different security systems emit two different coins.
Whereas PoS emits Breakout Coin (by staking Breakout Stake), the PoW emits Sister Coin. This type of system is completely novel and unique to Breakout Chain.
To help promote adoption of Breakout Coin, a reserve of 7,000,000 BRK was held to be lent to vendors and third-party businesses to help them promote their business as well as adoption of BRK.
Loan disbursements were made over time and had strict clauses that forbade
the recipients from selling coins on exchanges. Loans were intended to be used
for such things as award points or incentives. Each disbursement was locked in
blockchain escrow using the deferred-availability function
CHECKLOCKTIMEVERIFY, ensuring that no coins were available until
the time of disbursement. Upon repayment, the principal of each payment was
locked in multi-signature escrow using at least one professional and trusted
signatory service.
Terms of the loans encouraged the borrower to be a net buyer in the open market and did not penalize the borrower in the event that the BRK price increased significantly during the repayment period. This system established a highly controlled pool of funds that could be used to promote Breakout Coin by providing low-cost marketing funds to businesses.