The introduction of a Bitcoin-powered EVM-compatible blockchain enables non-custodial native Bitcoin staking, rewarding participants with CORE tokens.
CoreDAO’s innovative Core Chain combines Delegated Proof of Stake (DPoS) and Delegated Proof of Work (DPoW), offering users the opportunity to earn yield on their Bitcoin within the network itself.
This development signals a potential turning point for Bitcoin enthusiasts and the cryptocurrency industry’s pioneer.
Core aims to unleash the vast liquidity of trapped Bitcoin, addressing the demand for increased utility among Bitcoin holders. Rich Rines, a Core contributor, emphasizes the importance of separating the Bitcoin asset from its underlying infrastructure while maintaining synergy with Bitcoin L1.
Previously, individuals seeking passive income from Bitcoin needed to wrap their BTC on alternative chains like Ethereum. However, with this groundbreaking non-custodial staking mechanism, Bitcoin holders can now earn rewards directly within the Bitcoin ecosystem.
Core Chain launched its mainnet and distributed its native CORE token in early 2023. Despite experiencing an 8% drop today, the token currently trades at $2.05, marking a notable rise of 252% in market cap to $1.8 billion over the past month.
How Core Operates
Despite its relatively short existence, Core demonstrates impressive metrics. Approximately 50% of Bitcoin’s hashrate participates in the system, with over 5 million active wallets and more than 258 million on-chain transactions recorded.
CJ Reim, a Core contributor, explains that mining pools delegate their BTC hashpower to the network and receive CORE tokens in return, becoming validators. These validators collaborate with Bitcoin miners to recycle hash for transactions, ensuring chain security and rewarding holders and pools. Additionally, Core utilizes Bitcoin’s time lock feature, locking BTC for a specified period while miners delegate blocks to Core for tokens.
There are currently 28 validators, including OKXEarn, DAO Mining pool, and Bitget. Furthermore, users can earn a 25% yield on stCORE, a liquid staking token enabling CORE holders to earn rewards without locking their assets.
Bitcoin ETP
Core Chain’s innovative mechanism has attracted institutional interest. DeFi Technologies and Valour Asset Management recently launched an exchange-traded product (ETP) providing investors with exposure to Bitcoin-native yield through collaboration with CoreDAO.
Valour Inc. will manage a validator node on the Core Blockchain, bolstering network security and efficiency, with plans to stake $100 million in BTC.
“The Yield Bearing BTC ETP introduces a new era for Bitcoin as an actively yielding investment, utilizing Core Chain’s block rewards and expanding Bitcoin’s utility without leaving the network,” the firm stated.
A New Era for Bitcoin
The Bitcoin ecosystem, once characterized by its store of value narrative, is undergoing significant transformation. Innovations like Core Chain are expanding the utility of the world’s oldest blockchain, ushering in new possibilities and use cases beyond its traditional role.
