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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.