Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 133

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 133
---
-backed currency. As of the date of this prospectus, the adoption of bitcoin for
these purposes has been limited. The value of bitcoin is not backed by any government, corporation, or other identified body.

The value of bitcoin depends on its supply
(which is limited), and demand for bitcoin in the markets for exchange that have been organized to facilitate the trading of bitcoin.
By design, the supply of bitcoin is intentionally limited to 21 million bitcoins. As of the date of this prospectus, there are
approximately 19 million bitcoins in circulation.

Bitcoin is maintained on the decentralized,
open source, peer-to-peer computer network, the Bitcoin Network. No single entity owns or operates the Bitcoin Network. The Bitcoin
Network is accessed through software and governs bitcoin’s creation and movement. The source code for the Bitcoin Network,
often referred to as the Bitcoin Protocol, is open-source, and anyone can contribute to its development.

The Bitcoin Network

The infrastructure of the Bitcoin Network
is collectively maintained by various participants in the Bitcoin Network, which include miners, developers, and users. Miners
validate transactions and provide security to the network, and are currently compensated for that service in bitcoin. Developers
maintain and contribute updates to the Bitcoin Network’s source code, often referred to as the Bitcoin Protocol. Users access
the Bitcoin Network using open-source software. Anyone can be a user, developer, or miner.

Bitcoin is “stored” on a digital
transaction ledger commonly known as a “blockchain.” A blockchain is a distributed database that is continuously updated
and reconciled among certain users and is protected by cryptography. The bitcoin blockchain contains a complete record and history
for each bitcoin transaction.

New bitcoins are created through a process
called “mining.” Miners use specialized computer software and hardware to solve a highly complex mathematical problem
presented by the Bitcoin Protocol. The first miner to successfully solve the problem is permitted to add a block of transactions
to the bitcoin blockchain. The new block is then confirmed through acceptance by a majority of users who maintain versions of the
blockchain on their individual computers. Miners that successfully add a block to the bitcoin blockchain are automatically rewarded
with a fixed amount of bitcoin for their effort plus any transaction fees paid by transferors whose transactions are recorded in
the block. This reward system is the means by which new bitcoin enter circulation and is the mechanism by which versions of the
blockchain held by users on a decentralized network are kept in consensus.

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