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Tier Adjustment System


Overview

Core's tier adjustment system maintains sustainable and attractive yields for Dual Staking participants through dynamic management of CORE-to-Bitcoin ratio requirements. The system is designed to balance yield attractiveness with tier accessibility, ensuring that participants most aligned with Core receive consistently favorable rewards.

How Tier Adjustments Work

Primary Mechanism

The most important lever Core uses is adjusting the CORE-to-Bitcoin ratio requirement for accessing the Satoshi Tier and other yield tiers.

Adjustment Triggers

When Too Many Participants Qualify for Satoshi Tier:

  • The same reward pool gets split among more participants
  • Individual yields decrease for all Satoshi Tier participants
  • The protocol raises the CORE-to-Bitcoin requirement
  • Fewer participants qualify, increasing yields for remaining participants

When Too Few Participants Qualify for Satoshi Tier:

  • Yields become very attractive but highly inaccessible
  • High barriers limit participation to a small subset of stakers
  • The protocol lowers the CORE-to-Bitcoin requirement
  • More participants gain access, creating more balanced yield distribution

Key Factors Influencing Adjustments

Several variables determine when and how tier requirements change:

  • Participation Levels: How many participants qualify for each tier
  • Asset Prices: Current market prices of CORE and Bitcoin
  • Reward Pool Distribution: How rewards are split across tiers
  • Network Alignment Goals: Maintaining incentives for Core-committed participants

Practical Examples

Scenario 1: Increasing Requirements

  1. Dual Staking adoption grows significantly
  2. Many new participants qualify for Satoshi Tier
  3. Individual yields decrease due to reward pool dilution
  4. Protocol increases CORE-to-Bitcoin requirement for Satoshi Tier
  5. Some participants drop to lower tiers
  6. Remaining Satoshi Tier participants see yield recovery

Scenario 2: Decreasing Requirements

  1. Market conditions make Satoshi Tier very exclusive
  2. Only a small number of participants qualify
  3. High yields but limited accessibility
  4. Protocol decreases CORE-to-Bitcoin requirement
  5. More participants gain Satoshi Tier access
  6. Yields become more balanced across broader participant base

Impact on Participants

For Existing Satoshi Tier Participants

  • May need to increase CORE holdings to maintain tier status
  • Benefit from higher yields when requirements increase
  • Incentivized to maintain strong CORE-to-Bitcoin ratios

For Lower Tier Participants

  • May gain access to higher tiers when requirements decrease
  • Motivated to acquire more CORE tokens for tier advancement
  • Can plan CORE accumulation strategies around adjustment patterns

Monitoring Adjustments

Participants can track tier requirement changes and their impact through:

Why It Matters

The tier adjustment system ensures that Core's Dual Staking mechanism remains economically sustainable and continues to incentivize the behavior most beneficial to the network: Bitcoin stakers becoming CORE stakers and demonstrating long-term commitment to the Core ecosystem. This creates a self-reinforcing cycle where network growth supports participant rewards, and participant rewards drive network growth.