> For the complete documentation index, see [llms.txt](https://docs.bits.financial/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bits.financial/protocol-overview/bits-token.md).
# BITS Token
BITS serves as the core rebasing token within the Bits Protocol, functioning as the liquid representation of staked BTC. When users deposit BTC, wBTC, or other accepted wrapped BTC variants into the protocol, an orchestrator smart contract mints an equivalent amount of BITS at a 1:1 ratio of the staked asset. The deposited BTC is then paired with CORE tokens sourced externally and allocated to the Core Dual Staking pool, where it begins accruing rewards.
Staking rewards are collected daily and reinvested in BTC on the open market and distributing additional BITS tokens to existing token holders.
As an ERC-20 compliant token, BITS is deployed to CoreDAO. However, cross-chain and DeFi applications such as lending, borrowing, or liquidity provision, users are recommended to convert their BITS to wBITS to avoid complications arising from the rebasing mechanism.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.bits.financial/protocol-overview/bits-token.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.