What is CORE: How Does the Dual Staking Mechanism Enhance Bitcoin Yields?

Technical Foundation of the CORE Token and Core DAO

CORE is the native token of the Core DAO blockchain, launched alongside its mainnet in 2023. Core DAO is a blockchain compatible with the Ethereum Virtual Machine (EVM), whose core innovation lies in the Satoshi Plus consensus mechanism, combining the advantages of Bitcoin’s Proof of Work (PoW) and Proof of Stake (PoS). Specifically, Bitcoin miners can contribute their hash power to the Core network via Delegated Proof of Work (DPoW), while CORE token holders participate in node validation through Delegated Proof of Stake (DPoS). This hybrid design inherits Bitcoin’s security while achieving high throughput (processing over 2,000 transactions per second).

CORE tokens serve multiple functions within the ecosystem:

• Governance: Holders can vote on proposals such as network upgrades and parameter adjustments;

• Transaction Fees: Used to pay gas fees and participate in fee burning (10% of each transaction fee is burned);

• Staking: By staking CORE, participants earn network rewards and governance rights.

Investors can track CORE’s price and market dynamics in real time via JuCoin‘s market page.

Dual Staking Mechanism: Linking BTC and CORE Yields

In April 2024, Core DAO launched the dual staking model, allowing users to stake Bitcoin (BTC) and CORE tokens simultaneously to enhance returns through a dynamic yield distribution mechanism. The core logic includes:

Non-custodial BTC Staking

Users stake via the OP_RETURN field of the Bitcoin network, maintaining full control of their private keys without transferring assets to third-party custodians;

CORE Staking Boost

The higher the proportion of CORE staked relative to total staked assets, the greater the yield boost for BTC staking. For instance, if the value of staked CORE accounts for 50% of the user’s total staked assets, BTC staking rewards can increase to 150% of the base yield;

Deflationary Yield Design

20% of every staking reward is permanently burned, reducing CORE’s circulating supply to support token value.

As of April 2025, approximately 7,600 BTC (about $595 million) and 160 million CORE (about $136 million) have been locked in the dual staking pool, making it the largest staking pool in the Bitcoin decentralized finance (BTCFi) sector.

Market Impact and Performance of Dual Staking

Since the launch of dual staking, the price of CORE has risen from $0.40 to $0.78 (an increase of 95%), and the total value locked (TVL) in the ecosystem has surpassed $1.3 billion. The market momentum mainly stems from three areas:

Bitcoin Capital Activation

Traditional BTC holders earn CORE rewards by staking, turning “dormant assets” into yield-generating ones, with some institutions offering an annualized yield of up to 5.65%;

Liquidity Solutions

The introduction of the liquid staking token LstBTC allows users to trade or collateralize staked assets within DeFi protocols while continuing to earn yields;

Accelerated Institutional Adoption

The Grayscale CORE Trust Fund has reached $134 million in size, and Coinbase Custody support has further lowered the threshold for institutional participation.

Risk Warnings and Investor Strategies

Potential Risks:

• Regulatory Uncertainty: The U.S. SEC has not yet clarified whether CORE is classified as a security. If it is determined to be one, institutional inflows may be restricted;

• Technical Correction Pressure: CORE’s weekly RSI is approaching the overbought range at 70. If it fails to break through the $1.20 resistance level, a short-term pullback to the $0.73 support level may occur;

• Node Operation Risks: In 2025, node failures caused over $730 million in staked asset losses. It is recommended to choose validator nodes with a low slashing rate (<3%).

Operational Strategies:

• Diversified Staking: Avoid staking more than 5% of total assets to a single node;

• Dynamic Position Management: If CORE stabilizes above $0.85, the target price is $1.20; if it falls below $0.70, reducing positions and observing is advisable;

• Tool Assistance: Use options contracts to hedge against volatility risks or deploy grid trading strategies to capture cyclical gains.

Future Outlook — The Long-Term Potential of the BTCFi Ecosystem

Core DAO plans to launch the Mysticeti consensus upgrade in the second half of 2025, reducing transaction confirmation time to 0.6 seconds and introducing an atomic cross-chain protocol to enable seamless asset swaps between Bitcoin, Ethereum, BNB Chain, and other EVM chains. Additionally, the physical crypto card in collaboration with Visa is in testing, potentially driving large-scale retail adoption of CORE. With increasing Bitcoin ETF inflows and deeper institutional adoption, CORE may become the core infrastructure token of the BTCFi sector.