Manufactured BTUs

In case of a Hard Fork in Bitcoin, Bitfinex has announced that all lent BTCs will be credited with commensurate BTUs, wherein the latter will be manufactured (as in Manufactured Dividends) by the BTC borrower. Poloniex on the other hand announced that lent BTCs will not be credited with BTUs, giving rise to distorted incentives and a market failure in BTC margin lending on their platform.

Read more:

https://www.bitfinex.com/bitcoin_hardfork_statement

https://www.bitfinex.com/posts/194

https://www.bitfinex.com/posts/197

https://poloniex.com/press-releases/2017.03.17-Hard-Fork/

 

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