Core Chain Launches Dual Staking Model to Boost Bitcoin Yields

The Core Foundation, promoting a Bitcoin-powered blockchain, on Thursday announced the introduction of a dual staking model for the Core blockchain. It builds upon Core’s existing non-custodial Bitcoin staking system, which was launched earlier this year.

The dual staking model allows Bitcoin holders to earn higher yields by staking both Bitcoin and CORE tokens, according to a press release shared with Decrypt.

While users can continue to stake only Bitcoin for a base “risk-free rate,” those who also stake CORE tokens will be eligible for enhanced “dual-staker rates.”

Additionally, long-term stakers will receive higher rewards compared to those who stake for shorter periods.

Since its launch in April, the non-custodial Bitcoin staking system on the Core blockchain has attracted approximately 5,000 Bitcoin, the foundation says, valued at around $309 million.

This system enables Bitcoin holders to earn yield without relinquishing custody of their assets, effectively establishing what Core calls the “Bitcoin risk-free rate.”

July 25th 2024🔶 pic.twitter.com/865qnuM4yV

— Core DAO 🔶 (@Coredao_Org) July 22, 2024

Explaining the significance of the new model, Rich Rines, a Core DAO contributor, said Core acts as a second block reward provider for Bitcoin, where—in exchange for providing security—Core rewards Bitcoin participants with CORE tokens.

“With dual staking, those CORE token rewards take on even greater importance,” Rines said.

The Core blockchain, which is Bitcoin-powered and compatible with Ethereum Virtual Machine (EVM), has seen solid adoption since its mainnet launch in January 2023. The network boasts over 19 million unique addresses and has processed more than 260 million transactions.

According to the foundation, about 55% of Bitcoin mining hash power is being delegated to Core, contributing to its security.

Edited by Ryan Ozawa.

Source