Core’s Dual Staking: Turbocharging BTC Rewards

Core DAO, an Ethereum Virtual Machine (EVM)-Compatible, Bitcoin-aligned blockchain, boasts a game-changing feature called Dual Staking. This innovative system allows users to supercharge their rewards by staking Core DAO’s native token, $CORE, alongside their BTC. 

With attractive yield tiers, non-custodial staking, and a focus on long-term network alignment, Core Dual Staking is redefining how Bitcoin holders earn passive income. This article examines how Dual Staking operates, its advantages, and why it is a sustainable solution for cryptocurrency investors.

Understanding Core Dual Staking

The Core DAO blockchain combines Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and non-custodial Bitcoin staking through its Satoshi Plus consensus mechanism. Launched in 2023, the platform pushes the BTCFi narrative by enhancing Bitcoin’s utility in Decentralized Finance (DeFi). All this is made possible while maintaining security and decentralization. The native token, CORE, powers governance, transactions, and staking within the ecosystem.

Dual Staking, introduced in April 2024, is a mechanism that enables users to stake both BTC and CORE simultaneously, unlocking higher yields on their Bitcoin holdings. Unlike traditional staking, where rewards are fixed, Dual Staking offers dynamic yield tiers based on the ratio of CORE to BTC staked. This system incentivizes a deeper commitment to the Core network, aligning stakers’ interests with the platform’s long-term objectives.

Although Dual Staking offers higher yields for Bitcoin staking, there is a catch. According to the Core DAO Dual Staking documentation, users must meet the following requirements:

• Stake both CORE and Bitcoin simultaneously, ensuring that the amount of CORE staked exceeds the minimum dual staking threshold. 
• The CORE staking wallet address must match the designated CORE rewards address for Bitcoin staking to which the yield is paid.

How Core's Dual Staking Works

Dual Staking is designed to reward Bitcoin stakers who are most committed to the Core ecosystem. Here’s a step-by-step breakdown:

• Stake BTC Non-Custodially: Bitcoin holders can stake their BTC directly on the Core Chain without relinquishing custody, ensuring security and control. This feature, detailed in the Core DAO BTC Staking FAQs, appeals to investors wary of custodial risks.
• Add CORE to the Mix: To unlock higher yields, users stake CORE alongside their BTC. The amount of CORE staked relative to BTC determines the yield tier, with higher ratios unlocking better rewards.
• Choose a Validator: Stakers delegate their assets to one of the 27 validators elected based on a hybrid scoring system. Selecting a high-performing validator maximizes returns.
• Earn Boosted Yields: Solo BTC stakers earn a baseline yield (referred to as P_BASE), while Dual Stakers can achieve yields up to 10x higher or more, depending on their CORE:BTC ratio. Rewards are distributed daily from transaction fees and block rewards.

The system is governed by the Core DAO community, which can vote to adjust yield tiers, ratios, and other parameters to ensure competitive rates and network sustainability.

Yield Tiers: Unlocking Enhanced Bitcoin Rewards

Core Dual Staking features four yield tiers based on the CORE:BTC staking ratio: Base, Boost, Super, and Satoshi. These tiers are defined as follows:

Base Tier: Less than 1,000 CORE per 1 BTC. Solo BTC stakers or those with minimal CORE staking earn the baseline yield (P_BASE).

Boost Tier: 1,000 to 10,000 CORE per 1 BTC. This tier offers a moderate yield increase, making it suitable for users starting with Dual Staking.

Super Tier: 10,000 to 100,000 CORE per 1 BTC. Higher CORE stakes unlock significantly better yields, appealing to committed stakers.

Satoshi Tier: Over 100,000 CORE per 1 BTC. Named after Bitcoin’s creator, this top-tier product offers the highest yields, potentially up to 25 times the baseline.

These tiers are adjustable via governance votes, ensuring flexibility. The Core DAO Dual Staking documentation explains that yields (P_BASE, P_1, P_2, P_MAX) correspond to CORE:BTC ratios (R_1, R_2, ..., R_n), with multipliers applied based on staking data. For example, a user staking 0.1 BTC and 10,000 CORE (100,000 CORE per 1 BTC) could qualify for the Super or Satoshi tier, depending on exact thresholds. 

Benefits of Dual Staking: Why it Boosts Sustainability

Dual Staking isn’t just about higher rewards; it’s a strategic move to enhance the Core network’s longevity. By requiring CORE staking to unlock better BTC yields, Core DAO reduces the circulating supply of CORE, potentially stabilizing its value and mitigating price volatility. This approach strengthens network security by incentivizing higher stakes, which are tied to the trustworthiness of validators.

Moreover, Dual Staking aligns long-term incentives. Stakers who commit both BTC and CORE are more likely to participate in governance, including the election of validators and voting on protocol upgrades. This fosters a decentralized, community-driven ecosystem where participants have a stake in its success.

The non-custodial nature of BTC staking also appeals to long-term holders and institutions, allowing them to earn passive income while keeping their Bitcoin secure on the blockchain. This setup is ideal for those seeking DeFi opportunities without compromising on security.

With this in mind, Core Dual Staking offers several advantages for Bitcoin holders and crypto enthusiasts:

• Higher Yields: Dual Stakers can earn up to 10x or more than the baseline yield, making it a lucrative option for maximizing returns.
• Non-Custodial Security: Stakers retain control of their BTC, reducing risks associated with third-party custodians.
• Long-Term Alignment: By tying rewards to CORE staking, the system encourages commitment to the Core ecosystem, benefiting both stakers and the network.
• Flexibility: Multiple yield tiers cater to various investment strategies, ranging from small-scale stakers to large-scale miners.
• Community Governance: Stakers can influence yield rates and network parameters, ensuring the system remains competitive and sustainable.

Challenges and Considerations

While Core Dual Staking is promising, it’s not without challenges. Stakers must acquire and stake CORE, which may require additional investment and market exposure. The complexity of managing CORE:BTC ratios and selecting validators could also deter beginners. Additionally, yields are subject to market conditions and governance decisions, introducing some uncertainty.

To mitigate these, Core DAO provides detailed guides and FAQs, ensuring users understand the process. Long-term staking and careful selection of validators can further optimize returns, as emphasized in the official documentation.

Getting Started With Dual Staking

As Bitcoin continues to dominate the crypto market, platforms like Core DAO are unlocking its potential in DeFi. Dual Staking positions Core as a leader in Bitcoin staking, offering a secure, non-custodial way to earn passive income. With its focus on sustainability, community governance, and attractive yields, the initiative is poised to attract both retail and institutional investors.

Visit the Core DAO website to learn more about Dual Staking and start staking today. We also recommend checking out the Core DAO Dual Staking guide for step-by-step instructions and exploring the BTC Staking FAQs for answers to common questions.