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Dual Staking - Unlock Higher APY for BTC Staking

Introduction​

Non-Custodial Bitcoin Staking was integrated into the Core blockchain in April 2024, allowing users to stake Bitcoin and earn yield while retaining complete control over their assets. This implementation provides a native mechanism for generating Bitcoin yield without introducing additional trust assumptions.

To further enhance yield generation from Non-Custodial Bitcoin staking at scale, Dual Staking unlocks higher yield tiers by staking Bitcoin and CORE simultaneously. Since daily CORE emissions are fixed, those who stake CORE alongside Bitcoin earn higher reward tiers than those staking Bitcoin alone. The percentage of boost on yield is determined by staking CORE above multiple defined thresholds, with each threshold corresponding to increasing tiers of Bitcoin staking rewards. By linking higher Bitcoin staking rewards with the volume of CORE tokens staked, this approach encourages Bitcoin stakers to make a deeper commitment to the Core ecosystem. It maximizes the yield returns for committed users.

How does Dual Staking Work?​

Dual Staking does not alter the staking process for Bitcoin and CORE. For more information on how Non-Custodial Bitcoin Staking works, refer here. Also, consult this detailed guidebook on delegating CORE and staking/redeeming BTC.

Dual Staking creates an opportunity to unlock higher yields when both Bitcoin and CORE are staked simultaneously, with varying CORE staking thresholds corresponding to different yield boost levels on Bitcoin staking rewards on the Core blockchain.

Bitcoin holders can stake their Bitcoin through Core's Non-Custodial Bitcoin Staking to accumulate CORE rewards. By subsequently staking their CORE tokens at different Dual Staking thresholds, users unlock higher tiers of Bitcoin yields, paid in CORE. While Dual Staking enhances Bitcoin staking rewards, it does not impact the yield generated by CORE staking itself.

To enable higher yields for Bitcoin staking through Dual Staking, users must meet the following requirements:

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

Based on the CORE:BTC staking ratios (R1, R2, … , Rn), representing CORE tokens staked relative to Bitcoin staked, Bitcoin staking rewards are divided into n boosted yields (PBASE, P1, P2, …, PMAX). Depending on a user's boosted yield level, yield multipliers are applied to the base rate for staking Bitcoin on Core. Yield multipliers are determined based on the user's staking data and system dual staking settings. As a result, different users might have different multipliers. Specific CORE staking thresholds should also be met to qualify for boosted yields. Further, it is to be noted that the staking ratios (R1, R2, … , Rn) and the number of boosted yield levels (PBASE, P1, P2, …, PMAX) are subject to change and are adjustable through governance votes.

What Changes with Dual Staking?​

From the perspective of how staking is performed, nothing fundamentally changes with Dual Staking. Users can still stake Bitcoin and CORE independently; however, by staking both Bitcoin and CORE simultaneously, they unlock the potential for higher returns on Bitcoin staking. Staking both assets is not mandatory but an optional enhancement for Bitcoin holders seeking to maximize their yield. Think of this as a reward boost, where Bitcoin stakers will receive enhanced rewards as they increase the amount of CORE staked.

Dual Staking strengthens the relationship between Bitcoin and the Core blockchains, aligning incentives and value across both ecosystems. It offers increased rewards for those who actively participate in both staking options without introducing any new requirements or complexities to the staking process.

Key Features of Dual Staking​

  1. Increased Rewards Through CORE Staking: Bitcoin stakers can now stake CORE tokens alongside Bitcoin to unlock higher Bitcoin staking yields. To earn these enhanced staking rates, Bitcoin stakers are required to stake CORE above a certain threshold.

  2. Cumulative Reward Boost: Once Dual Staking is adopted, Bitcoin stakers will receive higher rates as they increase the amount of CORE staked. This means stakers can maximize their returns by staking more CORE.

  3. Risk-Free and Non-Custodial Staking: Core’s Non-Custodial Bitcoin Staking enables users to maintain complete ownership of their assets throughout the staking process. Bitcoin remains securely in the user’s wallet and is unlocked when their chosen lock period expires. No external entity ever gains custody of the staker’s Bitcoin. Meanwhile, in exchange for stakers locking up their Bitcoin, they can delegate to Core validators that secure CORE and earn rewards. This setup eliminates custodial risk and enhances security, as stakers participate in Core’s security without putting their Bitcoin at risk.

Who Can Benefit from Dual Staking?​

Dual staking is designed for everyone, from individuals to the largest financial institutions, who want to earn higher Bitcoin staking rates. In addition to Bitcoin holders, Bitcoin miners can also leverage Dual Staking to optimize their earnings.

Bitcoin Miners can earn CORE rewards by delegating their hash power to validators on the Core network and staking their Bitcoin and CORE tokens. They can unlock higher yields on their Bitcoin treasuries by staking CORE tokens over the minimum dual staking threshold. Integrating mining rewards with the Dual Staking mechanism allows miners to maximize returns on mining and staking activities.

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Please refer to the Dual Staking FAQ section for further questions or clarifications. For additional support, you may direct your queries to the Core Dev Forum or Core Discord Server.

Conclusion​

Dual Staking is a mechanism for providing sustainable Bitcoin staking rates at scale on Core. Further establishing Core as the leading end-to-end BTCfi platform, the CORE token is becoming the key to unlocking sustainable yield for Bitcoin.