Non-Custodial BTC Staking
Last updated
Last updated
Non-Custodial BTC staking is one of the three fundamentals of Core’s Satoshi plus consensus mechanism. Core’s Non-Custodial BTC Staking lets BTC holders securely lock their BTC natively on the Bitcoin network without giving up control of their private keys or transferring their assets to a third party, external smart contract, or multi-party computation (MPC) wallet. In return for their contributions, they earn CORE tokens as staking rewards. Through Non-custodial BTC staking, the BTC stakers can actively contribute to the validator election on the Core network, strengthening its security and decentralization through the Satoshi Plus consensus mechanism. This approach ensures that user assets remains under their control while enabling them to support network security and earn rewards.
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 (BRateBASELINE). 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.