Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 176

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 176
---
 developers has evolved to
informally manage the source code for the protocol. Membership in the community of core developers evolve over time, largely based
on self-determined participation in the resource section dedicated to bitcoin on Github.com. The core developers can propose amendments
to the Bitcoin network’s source code that, if accepted by miners and users, could alter the protocols and software of the
Bitcoin network and the properties of bitcoin. These alterations would occur through software upgrades, and could potentially
include changes to the irreversibility of transactions and limitations on the mining of new bitcoin, which could undermine the
appeal and market value of bitcoin. Alternatively, software upgrades and other changes to the protocols of the Bitcoin network
could fail to work as intended or could introduce bugs, security risks, or otherwise adversely affect, the speed, security, usability,
or value of the Bitcoin network or bitcoins. As a result, the Bitcoin network could be subject to new protocols and software in
the future that may adversely affect an investment in the Trust.

The open-source structure of the Bitcoin
network protocol means that the core developers and other contributors are generally not directly compensated for their contributions
in maintaining and developing the Bitcoin network protocol. A failure to properly monitor and upgrade the Bitcoin network protocol
could damage the Bitcoin network and an investment in the Trust.

The Bitcoin network operates based on an
open-source protocol maintained by the core developers and other contributors, largely on the GitHub resource section dedicated
to bitcoin development. As the Bitcoin

27 

network protocol is not sold or made available
subject to licensing or subscription fees and its use does not generate revenues for its development team, the core developers
are generally not compensated for maintaining and updating the source code for the Bitcoin network protocol. Consequently, there
is a lack of financial incentive for developers to maintain or develop the Bitcoin network and the core developers may lack the
resources to adequately address emerging issues with the Bitcoin network protocol. Although the Bitcoin network is currently supported
by the core developers, there can be no guarantee that such support will continue or be sufficient in the future. For example,
there have been recent reports that the number of core developers who have the authority to make amendments to the Bitcoin network’s
source code in the GitHub repository is relatively small, although there are believed to be a larger number of developers who
contribute to the overall development of the source code of the Bitcoin network. Alternatively, some developers may be funded
by entities whose interests are at odds with other participants in the Bitcoin network. In