History of the Bitcoin Based Master Protocol
What Are Mastercoins? How Do They Differ From Bitcoin?
Mastercoins are the digital capital needed to utilize the Master Protocol. The Master Protocol uses the block chain to enable features such as smart contracts, user developed currencies, and decentralized peer-to-peer marketplaces. The Protocol is the natural development of Bitcoin, layered atop it. A total of 619,478.6 Mastercoins exist and no more will ever be produced, whether through mining or any other means.
In September of 2013, the Mastercoin Foundation was created to manage the currency in the Exodus Address and to distribute Mastercoin. The board intended not to become a central hub through which all Mastercoin operations traveled through, but to be a transitional entity ushering in a democratic system as to the future decisions of Mastercoin. Mastercoin transactions require a fee in bitcoins in order to be added to the blockchain, since they are fundamentally Bitcoin transactions with different data in their outputs.