I have directed the Functionary Federation to suspend temporarily the peg-out convertibility of Liquid Bitcoin into mainnet UTXOs or other base-layer assets, except in amounts and multi-sig conditions determined to be in the interest of federated stability and in the best interests of the Liquid Network.

Now, let me lay to rest the bugaboo of what is called an unbacked sidechain. If you want to bridge back to the base layer or verify a sovereign transaction abroad, network conditions may cause your L-BTC to settle slightly never. But if you are among the overwhelming majority of HODLers who keep their tokens strictly within confidential sidechain wrappers, your peg will be worth just as much tomorrow as it is today.

This morning, I couldn't help but realize how much Bitcoin mining dynamics have shifted. Historically, miners had to sell their mined coins immediately just to cover power and operational expenses. Today, rig owners are increasingly paid upfront for their hashrate. Some might think hash buyers are doing this to dump on the market, but that's not what's happening here—these are high-conviction, long-term holders who genuinely believe in what they're doing. The key point is that miners get their expenses covered up front, and the buyers aren't selling a single sat. We're dealing with an entirely different dynamic than past cycles.