Core

Bitcoin

Enhance

April

Foundation

Core Foundation&nbsp;<a style="text-decoration:none" href="https://coredao.org/explore/blog/core-foundation-announces-dual-staking-model-to-boost-bitcoin-yields-and-set-market-standard">unveiled</a> its Dual Staking model to boost Bitcoin yields and set a new standard in the market. Building on Core's pioneering Non-Custodial Bitcoin Staking, this innovation introduces a $BTC bond layer to establish the ‘Bitcoin Risk-Free Rate.’&nbsp;
The transformation is expected to reinforce Bitcoin's role from a store of value to a secure, yield-bearing asset.
<h2 dir="ltr" id="span-span-how-dual-staking-works-span-span">How Dual Staking Works</h2>
The new model allows Bitcoin (BTC) stakers to stake both BTC and Core rewards for higher returns. Holders who stake $CORE tokens alongside $BTC can earn "Dual-Staker Rates." Meanwhile, $BTC holders can continue to stake their Bitcoins for the base Risk-Free Rate. This rate refers to the yield generated without counterparty risk within the protocol.
&nbsp;
Bitcoin stakers who commit to long-term staking will receive higher rewards than those staking for shorter periods. The duration will be determined in the long run, but the development aims to close the economic loop between Bitcoin and the Core network.&nbsp;
&nbsp;
This establishes clearer value for Bitcoin staking rewards and alignment between the two blockchains. Industry experts view Dual Staking as a crucial advancement for Core's value proposition, positioning the native CORE asset as a cornerstone of Bitcoin finance.
&nbsp;
The integration of Bitcoin and Core blockchains comes as 55% of BTC mining hash power is actively delegated to Core.
<h2 dir="ltr" id="span-span-background-on-non-custodial-bitcoin-staking-span-span">Background on Non-Custodial Bitcoin Staking</h2>
In April 2024, Core launched its&nbsp;<a style="text-decoration:none" href="https://coredao.org/explore/blog/74">Non-Custodial Bitcoin Staking</a>, allowing Bitcoin holders to earn yield without relinquishing custody. In the initial months, around 5,000 BTC, worth $309 million, were staked with Core. These stakers earned the Risk-Free Rate, paid out in CORE tokens.
&nbsp;
Rich Rines, a key contributor to the Core DAO, explains that the new model not only offers an additional earning mechanism but also enhances blockchain security.&nbsp;
&nbsp;
<blockquote>
 "Core acts as a second block reward provider for Bitcoin. In exchange for&nbsp; security provision, Core rewards Bitcoin participants with CORE tokens,”&nbsp; said Rich Rines, contributor to Core DAO. “With Dual Staking, those CORE token rewards take on even greater importance.”
</blockquote>
By staking, participants contribute to network security, fostering a safer ecosystem for transactions. In return, they receive CORE tokens, which now play a more critical role in their investment portfolio due to the dual staking system.

Core Foundation Launches Dual Staking to Enhance Bitcoin Yields

Innholdsfortegnelse

BSCN

Andre artikler publisert på 29. juli 2024

21Shares Employs Chainlink to Verify Ethereum ETF Reserves

All about August’s token unlock: XRP, AVAX lead over $1B event

Shiba Inu and Pepe Spark $12 Billion Meme Coin Revival – Are You Ready to Invest?

Tequila Token to Launch on Solana Blockchain at 17:00 UTC on July 30, 2024

Gaming blockchain Ronin records 2M daily active users: Token Terminal

Cardano Continues To Bleed As 100x Raboo Surges Outshining Meme Rival Pepe

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!