- Core’s Dual Staking model integrates Bitcoin and Core, offering enhanced rates for stakers and aiming to establish a Bitcoin Risk-Free Rate.
- About 55% of Bitcoin mining hash power is delegated to Core, which supports 100+ dApps with $135M TVL and 50,000 DAU.
- Dual Staking allows $BTC stakers to earn higher rewards by staking both Bitcoin and $CORE, bridging Bitcoin and Core’s economic value.
On the opening day of the Bitcoin 2024 conference in Nashville, Tennessee, The Core Foundation delivered an announcement. The Core blockchain will soon adopt a Dual Staking model, integrating Bitcoin with Core. This innovative approach leverages Core’s Non-Custodial Bitcoin Staking, which acts as a $BTC bond layer, aiming to establish the Bitcoin Risk-Free Rate.
Aligning Bitcoin and Core Blockchains
This step brings the Bitcoin and Core blockchains into alignment, particularly because Core is now actively getting about 55% of the $BTC mining power. Core protects more than 100 decentralized apps (dApps), more than 50,000 DAU, and a total value locked of $135 million (TVL). It is expected that Bitcoin will change from being a store of value to a safe, yield-bearing asset with the Dual Staking model.
Under the new model, $BTC stakers can stake both Bitcoin and Core rewards to earn enhanced rates. Holders staking $CORE tokens alongside $BTC will benefit from “Dual-Staker Rates.” Meanwhile, $BTC holders can continue to stake their Bitcoins for the base Risk-Free Rate.
This rate refers to yield generated without counterparty risk within the protocol. However, it does not address external risks like private key management, market volatility, or potential smart contract vulnerabilities.
Core’s Value Proposition and Future Outlook
Industry analysts view Dual Staking as a major step forward for Core’s value proposition. As the $CORE token becomes central to Bitcoin finance, demand for $CORE tokens is expected to rise. Consequently, these tokens may offer access to some of the most sought-after Bitcoin-native yields.
Bitcoin is better money. But money has much more in it beyond transfers. That's why unlocking BTC's DeFi potential is so important
— Core DAOpic.twitter.com/emwDTVnNmb
(@Coredao_Org) July 13, 2024
Moreover, Bitcoin stakers who commit to long-term staking will receive higher rewards compared to those staking for shorter periods. The specifics of the duration will be clarified over time. This initiative aims to bridge the economic gap between Bitcoin and the Core network, providing clearer value for Bitcoin staking rewards and better aligning the two blockchains.
“Core acts as a second block reward provider for Bitcoin. In exchange for security, Core rewards Bitcoin participants with $CORE tokens. With dual stakes, $CORE token rewards gain even greater significance,” stated Rich Rines, a contributor to the Core DAO, in an interview with International Business Times.
Read also:
The post Core Blockchain Unveils Dual Staking Model at Bitcoin 2024 Conference appeared first on Crypto News Land.