What is Coredao? Secured by Bitcoin

In the evolving landscape of decentralized finance (DeFi) and blockchain technology, Core DAO is emerging as a groundbreaking project that strengthens Bitcoin's role beyond being merely a store of value. 

CoreDAO represents an ambitious initiative to build a hyper-scalable smart contract platform that leverages Bitcoin's security while introducing scalability and flexibility through innovative mechanisms. 

In this article, we’ll explore what is CoreDAO, how it functions, its unique technology, and why it could become a major player in the future of DeFi.

What is CoreDAO?

At its core, CoreDAO is a decentralized network designed to serve as Bitcoin’s first Proof-of-Stake (PoS) layer and the largest Bitcoin DeFi ecosystem. 

It merges Bitcoin’s unparalleled security with the scalability benefits of modern consensus mechanisms. CoreDAO uses a hybrid consensus model called Satoshi Plus, combining Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking.

With more than 74% of Bitcoin mining hash power already securing the network and over 7,277 BTC staked, CoreDAO positions Bitcoin not only as a protector but as a central asset powering a new generation of decentralized applications. 

By allowing Bitcoin holders to participate in staking without giving up custody of their BTC, CoreDAO opens secure and sustainable yield opportunities for retail and institutional investors alike.

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How CoreDAO Works: The Satoshi Plus Consensus

The heart of CoreDAO’s innovation lies in its unique Satoshi Plus consensus mechanism. Unlike traditional blockchains that rely solely on Proof-of-Work or Proof-of-Stake, Core blends multiple models to enhance security, scalability, and decentralization.

• Delegated Proof of Work (DPoW): Leverages Bitcoin miners who commit their hash power to help secure the Core network.
  
   
• Delegated Proof of Stake (DPoS): BTC and CORE holders can delegate their assets to validators who maintain the blockchain.
  
   
• Non-Custodial BTC Staking: Bitcoin holders stake without losing custody, earning CORE tokens as rewards.

This hybrid model enhances the scalability that Bitcoin lacks without compromising its principles of decentralization and trustlessness.

Key Features of CoreDAO

Several standout features distinguish CoreDAO from other blockchain platforms:

1. EVM Compatibility

Core is Ethereum Virtual Machine (EVM)-compatible, allowing developers to easily port Ethereum-based smart contracts onto Core without major adjustments.

2. Non-Custodial Bitcoin Staking

This feature allows users to stake their BTC directly on the Core blockchain securely without transferring ownership, generating staking rewards in the form of CORE tokens.

3. Liquid Staking: stCORE and lstBTC

• stCORE: A liquid version of staked CORE tokens to enhance usability within DeFi protocols.
  
   
• lstBTC (Coming Soon): Liquid, yield-bearing Bitcoin token that provides BTC-denominated yield without sacrificing liquidity.

4. Sound Tokenomics

Following Bitcoin’s footsteps, CORE has a hard-capped supply of 2.1 billion tokens. Emission rates gradually decrease to ensure sustainable rewards and incentivize long-term participation.

The Core DAO: Governance and Decentralization

CoreDAO oversees the governance of the Core network. Initially, it provides oversight and safeguards to guide the network toward maturity. Over time, CoreDAO will progressively transition governance power to the community through three phases:

• Off-chain governance in the initial phase.
  
   
• Limited on-chain governance to allow changes to validator sets and key parameters.
  
   
• Full on-chain governance, where the community independently steers network development.

This gradual decentralization model ensures stability while empowering community-driven innovation.

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Problems CoreDAO Aims to Solve

CoreDAO addresses several long-standing issues in blockchain technology:

• Scalability vs. Security Trade-off: By combining Bitcoin’s PoW with DPoS, CoreDAO achieves scalability without compromising Bitcoin-grade security.
  
   
• Unlocking Bitcoin Utility: Bitcoin can now participate directly in DeFi without being wrapped or bridged, increasing Bitcoin’s use case.
  
   
• Passive Income Opportunities: Bitcoin holders can earn yield through non-custodial staking, a previously inaccessible opportunity.
  
   
• Decentralized Governance: Community-led governance ensures longevity and aligns with crypto's ethos of decentralization.

CoreDAO vs Other Blockchains

While Bitcoin and Ethereum are pioneers in their fields, CoreDAO offers a solution that marries Bitcoin’s trust model with Ethereum’s programmability. It also outcompetes centralized DeFi platforms by providing trustless, non-custodial alternatives.

Unlike Solana or Polygon, which emphasize speed sometimes at the expense of decentralization, CoreDAO focuses equally on scalability, decentralization, and security, thus aiming to resolve the blockchain trilemma comprehensively.

FAQ 

What is CoreDAO?

CoreDAO is a decentralized smart contract platform that complements Bitcoin, using a hybrid Satoshi Plus consensus model to offer scalable, secure DeFi applications secured by Bitcoin mining power.

How is CoreDAO secured?

CoreDAO’s security is backed by over 74% of Bitcoin’s mining hash power along with a delegated proof-of-stake model, ensuring robust decentralization and network integrity.

What is Non-Custodial Bitcoin Staking?

It allows users to stake BTC directly on Core’s network without transferring ownership of their Bitcoin, earning CORE tokens as rewards.

What is the maximum supply of CORE tokens?

CORE has a hard-capped supply of 2.1 billion tokens, with emissions planned over an 81-year distribution timeline.