Bitcoin enthusiasts have a new reason to celebrate as CoreDAO introduces an innovative way to earn yields on their holdings directly within the Bitcoin network, marking a pivotal development in cryptocurrency staking.
Introducing Native Bitcoin Staking by CoreDAO
CoreDAO’s latest venture, the Core Chain, merges the robustness of Delegated Proof of Stake (DPoS) and Delegated Proof of Work (DPoW) systems to allow Bitcoin holders to stake their digital assets non-custodially. This groundbreaking approach not only preserves the decentralized ethos of Bitcoin but also leverages its security and liquidity.
Rich Rines, a Core contributor, highlights the transformative potential of this launch: “Core aims to activate the trillion dollars of dormant Bitcoin liquidity by enhancing utility while maintaining a symbiotic relationship with Bitcoin’s Layer 1.”
Core Chain’s Market Impact and Functional Mechanics
Since its mainnet launch and the subsequent CORE token airdrop in early 2023, Core Chain has seen significant adoption. The CORE token, despite a recent 8% dip, has surged by 252% this month, bringing its market capitalization to $1.8 billion.
Core Chain’s success is underpinned by impressive participation metrics: around 50% of Bitcoin’s hashrate, over 5 million active wallets, and more than 258 million transactions. Miners can delegate their Bitcoin hashing power to become network validators, receiving CORE tokens in return. This process secures the network and rewards participants generously.
Innovations and Institutional Adoption
The introduction of stCORE, a liquid staking token, represents another strategic innovation by CoreDAO. It offers holders a projected annual yield of 25%, without the need to lock up their CORE tokens. This mechanism appeals to users seeking flexibility along with substantial returns.
On the institutional front, the launch of a Yield Bearing BTC Exchange Traded Product (ETP) by DeFi Technologies and Valour Asset Management on April 17 showcases Core Chain’s growing influence. This product allows investors to gain exposure to Bitcoin yields directly through the Core Chain, enhancing Bitcoin’s functionality and appeal as an actively yielding asset.
A New Chapter for Bitcoin
The advent of Core Chain, along with developments like Ordinals, signals a significant evolution in Bitcoin’s utility beyond just a store of value. These innovations are setting the stage for a more versatile and dynamic Bitcoin ecosystem.
As Bitcoin continues to mature, the integration of such novel functionalities is not just enhancing its appeal but also ensuring its relevance in the ever-evolving digital asset space.
