Users

Speculators

Speculators who anticipate an increase in Bitcoin transaction fees can take long positions on the fee rate futures. These individuals or institutions believe that network congestion will drive fee rates higher and that the demand for block space will continue to rise, either due to increased Bitcoin adoption, the rise of metaprotocols like Ordinals, or spikes in transaction-heavy activities (like minting tokens or conducting on-chain events).

Key drivers for speculating on rising 📈 fees:

• Surge in Adoption: As Bitcoin grows in adoption for payments, remittances, or institutional transfers, an increase in transactions naturally leads to network congestion, driving up fees.

• Emerging Use Cases (e.g., Ordinals): Speculators may analyze the adoption of new metaprotocols and predict that rising demand for assets like Ordinals or Runes on the Bitcoin blockchain will trigger fee spikes.

• Limited Block Space: The finite nature of Bitcoin’s block space means that when demand spikes, fees rise dramatically. Speculators profit from understanding these bottlenecks and timing their positions accordingly.

Speculators can profit from the anticipation of decreasing fee rates by taking short positions. They are betting that Bitcoin's fee rate will drop, driven by lower network congestion or increased adoption of scaling solutions like the Lightning Network, which moves more transactions off-chain. Key drivers for speculating on declining 📉 fees:

• Scaling Solutions (Lightning Network): With more transactions happening off-chain, Bitcoin’s on-chain transaction volume may decrease, leading to lower fees.

• Reduced Network Activity: Periods of low on-chain activity (e.g., during bear markets or when speculative interest in metaprotocols declines) can cause fees to plummet.

Hedgers

Benefit from high tx fee environments.

These users are inclined to take a short position to offset their risk of associated with high transaction fees.

Mining Pools

In traditional Pay-Per-Share pools block transaction fees become a portion of the pool’s revenue. High transaction fee environments become profitable for these pools. Therefore hedging their risk through placing a short position might prove beneficial for more predictable revenue.

Pools engaging Full Pay-Per-Share average transaction fees over time to pay out miners. If an empty block is mined, miners will still get an average of transaction fee revenue over the previous X amount of blocks. This poses a risk for pool operators, translating into charging higher fees to miners. By hedging out transaction fee variability through our platform mining pools can pass on reduced pool fees to clients.

Transaction Fee Accelerators

Demand for Bitcoin transaction fee accelerators are directly proportional with future expected fee rates. During periods of high unpredictability, which is usually paired with high transaction fees, accelerators see an increase in demand. Since more competition for block-space increases demand for out-of-band payments, during low fee environments there is little use case for transaction accelerators.

Placing a short position can generate passive revenue during periods of little to no demand.

Legacy Payment Rails and Other blockchains

Higher network congestion increases demand for alternatives to route payments.

Benefit from Low Tx Fee environments.

These users will be inclined to take a long position to protect their frequent activities.

Meta-protocol projects launching soon

Planning an on-chain staking event, runes launch, or ordinal collection drop? These users operational costs will be hurt from a spike in transaction fees. In order to accurately forecast financing costs, placing a long position on our platform will be beneficial in the off-chance that fees spike rapidly on during the period you plan to launch.

Individuals with high on-chain footprint

Users who transact on a predictable daily or weekly basis might have their proccess impaired during periods of high network activity. In order to ensure your flow continues non-disrupted a long position would be beneficial. This will behave as an insurance for your frequent bitcoin network needs.

Bitcoin ATM’s

Provide a better user experience by baking in network fees into rounded out costs. A frequent complaint from ATM users is the confusion of various fees. Easily combine all your fees into one easy number to pass onto clients. Business risk of high on-chain fees will be offset through long positions on our platform.

Crypto Exchanges and Financial Services Companies

Businesses that offer free bitcoin withdrawals for customers will be adversely affected during periods of high network activity. For more predictable expenses a hedging strategy might be considered.