With its latest move, Loka is taking an important step in the Bitcoin mining industry. The strategic partnership with Hashlabs, a sustainable energy mining provider operating in regions with renewable energy resources such as Ethiopia, Finland and Kazakhstan, is promising for the future. Through this collaboration, Loka is launching a permissionless protocol that allows miners to sell future mining rewards.

Bitcoin mining, which has become a $10 billion industry, requires innovative solutions to reduce financial risks from price volatility, one of the biggest problems currently faced. Loka is introducing the decentralized finance (DeFi) model to overcome this problem. This model, based on renewable energy-powered resources, makes Bitcoin mining environmentally friendly and reduces the risks faced by miners.

Additionally, miners, who hold an estimated 10% of the Bitcoin supply, worth approximately $50 billion, will be enabled to bring more liquidity to the market. In this way, both miners and investors will be able to trade in a healthier market environment.

Loka’s protocol offers 110% overcollateralized contracts and tokenizes these contracts, creating instant access to liquidity in secondary markets. Thanks to this innovation, miners can access liquidity and protect themselves against market volatility while struggling with decreasing mining revenues in the post-halving period.

This new mining pool, focusing on sustainable energy sources, aims to attract especially institutional investors. Through this pool, investors will be able to purchase BTC hashrate (hashing power) contracts at discounted prices and directly from miners using renewable energy.

Andy Fajar Handika, founder of Loka Mining, emphasizes the importance of this collaboration as follows: “We have received intense interest from large investors looking for better access to Bitcoin. Thanks to Hashlabs’ hashrate supply and access to miners, investors can invest in Bitcoin without counterparty risk.” will be able to do it.”

Alen Makhmetov, co-founder of Hashlabs, believes that this protocol is an important step to support sustainable Bitcoin mining. Makhmetov states that Hashlabs, which offers sustainable and low-cost energy solutions, will also play a key role in protecting the financial health of miners. The company is known to currently control 500 petahashes, which is approximately 0.08% of the total hashrate on the Bitcoin network.

Loka’s protocol offers a trust-minimized and escrow-free environment. While miners receive their payments through ckBTC (Chain-key Bitcoin), investors gain liquidity thanks to ckBTC. ckBTC is a token backed 1:1 with BTC, which is 100% held on the Bitcoin mainnet.

Unlike traditional tokens, ckBTC does not rely on decentralized bridges to convert into BTC. Instead, ckBTC interacts directly with the Bitcoin network using the Internet Computer’s Chain Fusion technology. Thanks to Chain Fusion, Loka can verify mining contributions and manage rewards using smart contracts.

This collaboration between Loka and Hashlabs could be an important turning point for the future of Bitcoin mining. Bitcoin mining, whose environmental impact is reduced by using renewable energy resources, can be made more sustainable by reducing the risks of both miners and investors, thanks to the DeFi model.

The innovative protocol offered by Loka will make the market healthier by increasing liquidity. It is necessary to closely follow what impact this partnership will have on the industry in the coming period and how it will shape the future of Bitcoin mining.