KEY POINTS
- Stakers of $CORE tokens alongside $BTC can earn Dual-Staker Rates
- $BTC stakers committed to long-term staking can earn higher rewards
- Dual Staking is an 'additional incentive to security' simultaneously provided to Core and Bitcoin
The Core Foundation announced Thursday, on the first day of the Bitcoin 2024 conference in Nashville, TN, that Core, a Bitcoin-powered blockchain, is set to adopt a Dual Staking model (Bitcoin x Core).
The model builds on Core's first-ever implementation of Non-Custodial Bitcoin Staking that acts as a $BTC bond layer which will establish the Bitcoin Risk-Free Rate.
The adoption aligns the Bitcoin and Core blockchains, at a time when about 55% of $BTC mining hash power is being actively delegated to Core, helping to secure its over 100 decentralized apps (dApps) boasting $135 million TVL (total value locked) and more than 50,000 DAU. With Dual Staking, Core's transformation of Bitcoin is expected to solidify further from a mere store of value into a secure, yield-bearing asset.
Once Bitcoin x Core Dual Staking goes live, $BTC stakers can stake both Bitcoin and the Core rewards to earn higher rates. Holders staking $CORE tokens alongside $BTC can earn "Dual-Staker Rates," while $BTC holders can continue to stake their Bitcoins for the base Risk-Free Rate, a term referring to yield generated without counterparty risk within the protocol.
However, it doesn't account for external risks such as private key management, market volatility, or potential smart contract vulnerabilities.
Turning Bitcoin into a productive yield-bearing asset has changed how people view its potential🔶 pic.twitter.com/02KVdyzNfP
— Core DAO 🔶 (@Coredao_Org) July 19, 2024
Dual Staking is deemed by industry analysts as a major step for Core's value proposition as its native $CORE token becomes a keystone of Bitcoin finance. With demand continuously growing, $CORE tokens may be the entry point for the most desirable Bitcoin-native yields.
For Bitcoin stakers who commit to long-term staking, higher rewards will be given than those who stake for shorter periods. The duration will be determined in the long run, but the development is expected to close the economic loop between Bitcoin and the Core network, establishing clearer value for Bitcoin staking rewards and alignment between the two blockchains.
"Core acts as a second block reward provider for Bitcoin. In exchange for security provision, Core rewards Bitcoin participants with $CORE tokens. With Dual Staking, those $CORE token rewards take on even greater importance. Dual Staking introduces an additional incentive to security that's provided simultaneously to Core and Bitcoin," Rich Rines, a contributor to the Core DAO, told International Business Times in a statement.
Bitcoin is better money. But money has much more in it beyond transfers. That's why unlocking BTC's DeFi potential is so important🔶 pic.twitter.com/emwDTVnNmb
— Core DAO 🔶 (@Coredao_Org) July 13, 2024
The Core Foundation envisions an ecosystem where the Core network hosts the end-to-end BTCfi (Bitcoin-native DeFi) experience, comprising multiple layers and dApps that are designed to maximize the utility and security of the world's top digital asset by market value.
The Bitcoin Risk-Free Rate is just one of many financial primitives the Core blockchain promises to deliver to $BTC. With its faster, cheaper, and more scalable financial rails established for the Bitcoin asset, and its commitment to helping miners secure the base $BTC network, Core contributors envision the world's first decentralized cryptocurrency as "the premier global financial asset."
Since launching its mainnet in January 2023, the Core network has amassed millions of adopters – more than 19 million unique addresses and over 260 million transactions.
