RichSwap has switched on its new donation feature for Bitcoin, opening a fresh chapter in how liquidity can grow without relying on incentives or token giveaways. The feature, now live on mainnet, allows anyone to donate BTC directly to liquidity pools through an API, creating an unusual setup: support with no expectation of return.
It flips the logic of liquidity farming. Instead of offering returns or rewards to donors, the RichSwap model simply accepts BTC and uses it to deepen pool liquidity and raise token prices. This shift removes the transactional framing that has long shaped liquidity provisioning and instead appeals to contributors who believe in strengthening infrastructure.
BlockMinerFun will be the first project to adopt the new system, using RichSwap’s tech as part of their Automated Liquidity Program (ALP). In their model, a percentage of the energy used in mining tokens will be translated into BTC donations to the relevant token’s liquidity pool. The higher the energy spent mining a token, the higher the percentage of energy converted to liquidity donations.
The design rewards liquidity providers with a share of donated BTC, without requiring any extra investment from them. There’s no need to pair BTC with another token, no compulsion to provide equal value in an altcoin, and no risk of impermanent loss from volatile assets. The effect is a streamlined and more robust liquidity system where BTC alone can support deeper pools.
The feature is aimed at solving a longstanding problem with Bitcoin Layer 1 protocols: the lack of deep, sustainable liquidity. Without large token reserves to entice market makers or LPs, many fair-launch Bitcoin projects struggle to maintain decent trading conditions. RichSwap’s new feature addresses this by funnelling BTC directly into liquidity pools without creating new sell pressure.
Liquidity donations can’t be pulled out by donors. Instead, they sit in pools and generate trading fees for liquidity providers, creating a kind of auto-compounding system where LPs benefit passively over time. Because these BTC inflows don’t come with matching token mints or new emissions, there’s no downward pressure from freshly printed supply hitting the market.
BlockMinerFun, the first adopter of the system, has outlined how the ALP will work in practice. Their model starts with a base energy metric—essentially a measure of mining activity. The more energy used to mine a token, the higher the BTC donation to that token’s liquidity pool. For example, tokens with over 10 million units of energy spent on mining will see 65% of that energy’s equivalent in BTC donated to their pool.
This sliding scale aims to align incentives for all participants. Miners get fair distribution through proof of work, token holders benefit from rising prices, and LPs see increasing rewards in BTC. The donations grow as network activity grows, meaning the model scales naturally with user participation.
RichSwap’s donation feature is powered by Omnity Network’s REE tech stack and is accessed through a simple API. There’s no bridging or wrapping involved—just native BTC sent directly to on-chain pools. The idea is to keep it minimal, direct and secure. The API documentation is already live, and further adoption will depend on how quickly other projects decide to jump in.
While the model might sound altruistic on the surface, its appeal lies in its market mechanics. Donations help remove one of the major stumbling blocks for fair launches: low liquidity and poor price discovery. By raising token prices through direct BTC inflows, the system builds buy pressure naturally, and by rewarding LPs passively with real BTC, it helps keep them around.
Compared to traditional launch models, which often lead to aggressive speculation and quick sell-offs, this approach encourages longer-term involvement. There are no token bribes, no emissions schedules, no token buybacks trying to control the floor price. The pool deepens as more people participate and donate, and LPs are rewarded without new tokens entering circulation.
The system also reflects a broader rethink of incentives in decentralised finance. The assumption that everyone must be paid to participate is being tested. RichSwap’s donation feature suggests that some actors—especially protocols—might contribute value without expecting any direct return, in exchange for a stronger ecosystem and better trading conditions overall.
That’s where BlockMinerFun’s approach becomes particularly interesting. By tying donation percentages to mining energy, they turn what is usually a sunk cost into a metric of community contribution. It’s an elegant connection between the proof-of-work process and DeFi liquidity, two layers of the Bitcoin ecosystem that haven’t often worked together this directly.
The ALP is expected to launch by the end of the week, pending successful tests. Once live, it will apply to every token launched through BlockMinerFun’s upcoming launchpad. That means every new token will come with an automatic liquidity boost, directly tied to how much effort the network has put into mining it.
Instead of chasing whales or trying to coordinate token treasuries, the RichSwap approach takes a different path—one that builds from user participation and aligns with long-term value creation. There’s still plenty to test and refine, but the feature is live, the API is open, and the early signs suggest it could change the assumptions that have governed DeFi liquidity for years.
Anyone interested can find the documentation and try the system themselves, though it’s currently limited to BTC-only donations. That choice was deliberate, aiming to keep things native to Bitcoin Layer 1 and avoid complexity. Whether it expands to other chains or tokens remains to be seen.
The concept doesn’t require new assets to be minted, nor does it depend on external bridges. That simplicity makes it easier to adopt and scale. Projects can build directly on top of it, and liquidity can grow organically without needing endless rounds of incentives or liquidity mining schemes.
If enough protocols follow BlockMinerFun’s lead and integrate donations into their own operations, the shift in liquidity strategy could be substantial. There’s room for other models to emerge—perhaps ones that gamify donations, or pool them across ecosystems—but the core idea remains solid: better liquidity through contribution, not compensation.
RichSwap has essentially opened a door for BTCFi protocols to think differently. Whether that door leads to wider adoption or remains a niche tool for a few projects will depend on how the ecosystem responds. What’s clear, though, is that the donation feature has introduced a new mechanic for token ecosystems—one that could change how liquidity and community intersect.
