What is TAP Protocol? Recent News, Fundraising and Token
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Key Takeaways
- TAP Protocol is a Bitcoin-based asset issuance protocol that enables DeFi functionalities like token creation, multi-chain integration, and smart-contract-like behaviors directly on Bitcoin's Layer 1.
- It supports interoperability with chains such as Ethereum, XRP, Arbitrum, Solana, and ICP, and has integrated features like bridges and AMMs for seamless asset transfers and trading.
- The protocol has raised $4.2 million in funding and features a native token $TAP with a fixed supply of 21 million, used for staking and ecosystem incentives.
What is TAP Protocol?
TAP Protocol is a Bitcoin asset issuance protocol designed to enhance the Bitcoin ecosystem by enabling the creation and management of digital assets, DeFi applications, and multi-chain integrations directly on Bitcoin's Layer 1. According to its official website (tap-protocol.com) and X account (@tap_protocol), it supports OrdFi (Ordinal Finance) features, allowing for secure token issuance, decentralized indexing, and interoperability with other blockchains. The protocol has evolved into a key infrastructure layer in the Bitcoin ecosystem, supporting over 30 projects and 200,000+ active users as of 2025, with technical advancements in scalability, security, and DeFi integration (source: gate.com/learn/articles/what-is-tap-protocol/1521).
How Does TAP Protocol Work?
TAP Protocol operates by leveraging Bitcoin's Ordinals for asset issuance and introduces features like Promises, which enable smart-contract-like behaviors on Bitcoin L1 without needing Layer 2 solutions. Users can create and manage tokens, engage in DeFi activities such as liquidity pools and lending, and utilize multi-send functionalities for efficient transactions, as detailed in official X posts and the protocol's documentation. It also includes a decentralized Oracle network via Trac validators, which supports indexing and yields rewards in $TAP tokens.
The protocol facilitates cross-chain interactions through bridges, such as the Bitcoin-Ethereum bridge launched by TaparooSwap, allowing secure token movements between chains while maintaining a 1:1 ratio to prevent inflation. This is supported by integrations with chains like XRP, Arbitrum, Solana, and ICP, enabling app developers to connect Bitcoin to various ecosystems, AI systems, and fiat rails with instant finality (sources: tap-protocol.com and recent X posts from @tap_protocol).
What Makes TAP Protocol Unique?
- It enables full DeFi on Bitcoin L1 using Promises for smart-contract-like functionalities, eliminating the need for L2 solutions (evidenced by official X post on May 23, 2024).
- Features a revolutionary Bitcoin-Ethereum bridge for secure, multi-chain token movements with a fixed 1:1 ratio, enhancing liquidity across ecosystems (from X post on October 26, 2024).
- Supports a decentralized validator network that rewards participants with $TAP yields, powering the only decentralized Bitcoin indexer and Oracle (detailed in X post on July 5, 2024).
TAP Protocol Native Token
$TAP is the native token of TAP Protocol with a fixed total supply of 21 million, tradable on Bitcoin and Ethereum. It provides utility through staking for pool-share boosts, fee discounts in the protocol's AMM, and rewards for running validator nodes in the Trac network.
TGE Information
The $TAP token generation event was initially planned for October 21, 2024, but delayed to October 23, 2024, with a total supply of 21 million tokens. It included an airdrop to over 15,000 wallets and was launched as the first Bitcoin L1 project on CoinList, featuring utilities like multi-send for efficient distributions. The token is designed to maintain liquidity across Bitcoin and Ethereum via a secure bridge.
Recent News & Fundraising
- In December 2023, TAP Protocol completed a $4.2 million funding round led by Sora Ventures, with participation from multiple investors to enhance its Bitcoin ecosystem role (source: coinmarketcap.com/community/articles/657d72c57e9ccb5f1618c009/).
- On October 26, 2024, TAP Protocol announced the launch of the first Bitcoin-Ethereum bridge by TaparooSwap, enabling secure cross-chain token movements (from official X post).
- Recent updates in October 2025 include integrations with Trac Network for broader interoperability and reminders for $TRAC to $TNK token upgrades via TAP Wallet (from X posts dated October 19-23, 2025).