TL;DR
Core enables the first fully self-custodial Bitcoin staking using native CLTV timelocks. Earn CORE token rewards while maintaining complete custody—your Bitcoin never leaves your wallet or the Bitcoin blockchain.
True Self-Custody: Bitcoin remains in your wallet throughout staking using native Bitcoin timelock functionality
Simple Process: Timelock Bitcoin, vote for validators, earn CORE rewards automatically
No Risk to Principal: Zero slashing risk or smart contract vulnerabilities affecting your Bitcoin
Flexible Options: Basic staking or enhanced Dual Staking for higher yields
Native Security: Protected by Bitcoin's consensus rules, not third-party smart contracts
The Bitcoin Staking Revolution
Traditional Bitcoin Limitations
Bitcoin, the world's first and largest cryptocurrency, has traditionally been limited to a passive store of value function. Unlike Proof of Stake blockchains, Bitcoin's Proof of Work consensus mechanism doesn't allow holders to earn rewards simply by holding their assets. This reality has left billions of dollars in Bitcoin sitting idle in wallets, missing out on potential yield opportunities that other blockchain ecosystems offer.
The inability to stake Bitcoin natively has been a drawback for investors seeking passive income from their crypto holdings. While other cryptocurrencies offer staking rewards ranging from 4% or higher annually, Bitcoin holders have had to use centralized lending platforms or wrapped Bitcoin solutions on other chains, both of which introduce risks and complexities often greater than staking mechanisms.
How Core Enables Bitcoin Staking
Core introduced the first fully trustless, self-custodial Bitcoin staking solution. Through its Satoshi Plus consensus, Core allows Bitcoin holders to participate in Core network security and earn rewards without transferring their BTC to another blockchain or giving up custody of their assets.
This breakthrough is achieved through a combination of Bitcoin's native timelock functionality and Core's advanced consensus mechanism. Bitcoin remains on the Bitcoin blockchain, while staking operations are verified and managed through Core's infrastructure. This approach maintains Bitcoin's security properties while unlocking new utility for Bitcoin holders.
Self-Custodial Bitcoin Staking Explained
Core's Self-Custodial Bitcoin Staking enables Bitcoin holders to earn yield while maintaining complete custody of their Bitcoin. Here's how it works in three simple steps:
1. Timelock Bitcoin via CLTV: You create a timelock transaction using Bitcoin's native CheckLockTimeVerify (CLTV) function that locks your Bitcoin for a specified period (minimum 24 hours). This transaction includes metadata specifying which Core validator you want to support and your EVM address to receive CORE token rewards.
2. Vote for Validators: Your timelock transaction acts as a vote for your chosen Core validator, with voting power proportional to the amount of Bitcoin you've timelocked. Core's relayer network detects your timelock transaction and registers your validator vote in Core's consensus system.
3. Earn Rewards: When your elected validator secures the Core network and produces blocks, you receive a share of CORE token rewards distributed to your designated EVM address. Your Bitcoin remains locked and secure on the Bitcoin blockchain throughout this process, and becomes spendable again only after the timelock expires.
How Bitcoin Staking Works on Core
Satoshi Plus Consensus
The Satoshi Plus consensus mechanism is Core's approach to combining Bitcoin's security with scalable smart contract functionality. This hybrid consensus model combines Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Self-Custodial Bitcoin Staking to secure a robust and decentralized network.
In the Satoshi Plus model, Bitcoin miners can delegate their hash power to Core validators, Bitcoin holders can delegate their BTC for staking, and CORE token holders can stake their tokens to validators. This tripartite delegation system creates a unique security model that benefits from Bitcoin's massive hash rate and the economic security of both staked Bitcoin and staked CORE tokens. Validators must attract hash power, staked Bitcoin, and CORE token delegations to maximize their chances of participating in block production, ensuring alignment between miners, Bitcoin stakers, CORE stakers, and the network.
The consensus mechanism operates in epochs, with validators selected based on their combined hybrid score from delegated hash power, staked Bitcoin, and delegated CORE tokens. This approach ensures that the Core network inherits Bitcoin's security properties while enabling fast, efficient transaction processing and smart contract execution.
Delegated Bitcoin Staking
Delegated Bitcoin staking on Core works through a sophisticated system of Bitcoin Script and timelocked transactions. When you stake your Bitcoin, you're essentially sending a special transaction to yourself on the Bitcoin blockchain that signals your intention to delegate to a specific Core validator.
The delegation process uses Bitcoin's native OP_CHECKLOCKTIMEVERIFY functionality to embed delegation information in a Bitcoin transaction. This transaction includes:
The amount of Bitcoin being staked
The Core validator address
The staking duration
A unique identifier linking your Bitcoin address to your Core rewards address
Once this transaction is confirmed on the Bitcoin blockchain, Core validators can verify your stake and begin attributing rewards to your account. The beauty of this system is that your Bitcoin never moves – it remains in your wallet, secured by Bitcoin's battle-tested blockchain.
Validator Selection Process
Choosing the right validators is important for maximizing your staking rewards. Core validators are responsible for producing blocks and maintaining network security, and their performance directly impacts your staking returns.
When evaluating validators, consider these key factors:
Performance Metrics: Look for validators with high uptime (99%+), consistent block production, and a strong track record. Validators that miss blocks or go offline frequently will generate lower rewards for their delegators.
Commission Rates: Validators charge commissions on staking rewards, typically ranging from 3% to 7%. Lower commissions often represent higher net rewards, if the validator can sustain operations.
Total Stake and Delegation Limits: Popular validators may have delegation limits or become less efficient with too much stake. Diversifying across multiple validators can help optimize returns and reduce reliance on one validator.
Reputation and Team: Research the team behind the validator, their experience in blockchain operations, and their commitment to the Core ecosystem. Established validators with transparent operations are generally more reliable.
Step-by-Step Staking Guide
Prerequisites and Requirements
Before you begin staking Bitcoin with Core, ensure you have the following:
Minimum Bitcoin Amount: While there's no strict minimum for staking, gas fees make it economically viable to stake at least 0.01 BTC. Larger amounts will generate more meaningful rewards relative to transaction costs.
Compatible Bitcoin Wallet: You'll need a Bitcoin wallet that supports custom transactions and OP_CHECKLOCKTIMEVERIFY outputs. Recommended wallets include:
Unisat Wallet
Xverse Wallet
OKX Wallet (with Bitcoin support)
Core Wallet: Set up a Core network wallet to receive your staking rewards. You can use:
MetaMask (configured for Core network)
OKX Wallet
Any EVM-compatible wallet
Gas Fees: Prepare for Bitcoin transaction fees (for the staking transaction) and Core network fees (for claiming rewards). Keep some BTC for Bitcoin fees and CORE tokens for Core network operations.
Connecting Your Bitcoin Wallet
The first step in the staking process is connecting your Bitcoin wallet to the Core staking interface. Navigate to the official Core staking portal (stake.coredao.org) and follow these steps:
- Click "Connect Wallet" and select your Bitcoin wallet provider
- Approve the connection request in your wallet
- Verify that your Bitcoin balance is displayed correctly
- Ensure your wallet is set to the Bitcoin mainnet
For security, always verify you're on the official Core staking website. Check for the secure HTTPS connection and confirm the URL matches the official domain. Phishing sites may attempt to steal your wallet credentials or private keys.
Choosing Validators
Once your wallet is connected, you'll see a list of active Core validators. The validator selection interface typically displays:
Validator name and address
Current commission rate
Total delegated Bitcoin
Performance metrics (uptime, blocks produced)
Estimated APY
To optimize your staking strategy:
- Consider Diversification: Splitting your stake across multiple validators can promote yield consistency.
- Check Validator Delegations: Some validators may have more delegated Bitcoin, CORE, and hash power than others, which may mean rewards are diluted. Choosing high-performance validators with lower delegations can lead to higher yields.
- Review Historical Performance: Look for validators with consistent performance over multiple epochs, not just current projections.
Staking Process Walkthrough
After selecting your validator(s), follow this detailed process to stake your Bitcoin:
Step 1: Initiate Staking
Click "Stake" next to your chosen validator
Enter the amount of Bitcoin you wish to stake
Review the staking period options (starting with just one day)
Step 2: Configure Staking Parameters
Set your Core rewards address (where CORE token rewards will be sent)
Choose whether to auto-compound rewards (if available)
Review the fee structure and estimated rewards
Step 3: Create the Staking Transaction
The interface will generate a Bitcoin transaction with embedded staking data
Review all transaction details carefully
Confirm the Bitcoin network fee (choose appropriate fee level based on urgency)
Step 4: Sign and Broadcast
Approve the transaction in your Bitcoin wallet
The wallet will display the transaction details for final confirmation
Sign the transaction with your private key
The transaction will be broadcast to the Bitcoin network
Step 5: Wait for Confirmation
Bitcoin transactions typically require 6 confirmations
This process takes approximately 60 minutes
You can track the transaction using any Bitcoin block explorer
Step 6: Verify Staking Status
Once confirmed, your stake will appear in the Core staking dashboard
You should see your delegated amount and expected rewards
The protocol will begin recognizing your stake in the next epoch
Claiming Rewards
Staking rewards on Core are distributed in CORE tokens. Understanding the reward claiming process is essential for maximizing your returns:
Reward Accumulation: Rewards accumulate continuously but are distributed at the end of each epoch (typically every 24 hours). You can view your pending rewards in the staking dashboard at any time.
Claiming Process:
- Navigate to the "Rewards" section of the staking interface
- Connect your Core wallet (the one you specified as your rewards address)
- Click "Claim Rewards" to initiate the transaction
- Approve the transaction in your wallet and pay the Core network gas fee
- Rewards will be transferred to your wallet immediately
Tax Considerations: Keep detailed records of all reward claims for tax purposes. In most jurisdictions, staking rewards are considered taxable income at the time of receipt.
Staking Rewards & Economics
APY Rates
As of 2025, Bitcoin staking on Core offers competitive annual percentage yields (APY) that vary based on several factors:
Base Staking Rewards: The APY for Bitcoin staking on Core ranges from 0.1% to up to 6%. These rates are influenced by:
How much CORE relative to Bitcoin the user has staked
Total amount of Bitcoin staked with the network
Bitcoin staked at various Dual Staking tiers
Network activity and transaction fees
Asset prices
Validator performance and commission rates
Risks and Considerations
Principal Security Core's Self-Custodial Bitcoin Staking eliminates most traditional staking risks:
No Smart Contract Risk for Bitcoin: Your staked Bitcoin remains on the Bitcoin blockchain, secured by Bitcoin's native CLTV timelock function. There are no smart contracts that can access or control your Bitcoin—it's protected by Bitcoin's consensus rules, not Core's smart contracts.
No Slashing Risk: Unlike traditional proof-of-stake systems, your Bitcoin principal cannot be slashed under any circumstances. This isn't a policy decision—it's technically impossible due to Bitcoin's script limitations. Only validators face slashing of their CORE token bonds for misbehavior.
Complete Self-Custody: Your Bitcoin never leaves your wallet or control. The worst-case scenario is missing rewards if your validator underperforms, but your principal remains 100% secure.
Operational Risks
Validator Performance Risk: The main risk is reduced rewards if your chosen validator:
Goes offline for extended periods
Performs poorly in block production
Charges high commission rates
Mitigation: Research validator track records and diversify across multiple reliable validators.
Opportunity Cost: Bitcoin locked in staking cannot be sold during the timelock period, potentially missing market opportunities.
Mitigation: Only stake Bitcoin you can afford to lock and stagger staking periods for liquidity management.
Market Considerations
Reward Token Volatility: Rewards are paid in CORE tokens, so CORE price fluctuations affect the USD value of your earnings (though not your Bitcoin principal).
Network Dependency: Rewards depend on Core network activity and validator election processes, though your Bitcoin security is independent of Core's operation.
Key Advantages
No counterparty risk—your Bitcoin is secured by Bitcoin itself
No bridging or wrapping required
No smart contract vulnerabilities affecting your principal
Transparent, on-chain verification of all staking activity
Ability to switch validators without compromising security
Frequently Asked Questions
Q: Is Bitcoin staking with Core safe? A: Bitcoin staking with Core is designed to be self-custodial and secure. Your Bitcoin never leaves your wallet, and you maintain full custody through timelocked transactions.
Q: What's the minimum amount of Bitcoin I can stake? A: While there's no protocol-enforced minimum, Core’s interface requires at least 0.01 BTC.
Q: How long does it take to unstake my Bitcoin? A: Unstaking time depends on your initial staking period selection. When the lock period expires, you can immediately initiate an unstaking transaction. The Bitcoin network confirmation time (typically 1 hour) is the only delay.
Q: Can I lose my Bitcoin through staking? A: Under normal operations, you cannot lose your Bitcoin as it remains in your self-custody. Losing access to your wallet would be the largest risk, which still exists with simply self-custodying Bitcoin.
Q: Why are rewards paid in CORE tokens instead of Bitcoin? A: The Core network operates as a separate blockchain that secures itself through Bitcoin staking. The network generates CORE tokens as block rewards and transaction fees, which are distributed to stakers and validators.
Q: What happens if my chosen validator goes offline? A: You'll stop earning rewards while the validator is offline. You can switch to another validator to begin earning again.
Q: Is there a penalty for early unstaking? A: Core's Bitcoin staking doesn't impose early unstaking penalties. However, you cannot unstake before your chosen lock period expires. The timelock is enforced by the Bitcoin blockchain, so Core has no ability to abridge that time period.
Q: How do liquid staking options compare to regular staking? A: Liquid staking offers more flexibility as a token representing both the underlying principal and accrued yield. It's ideal for users who need liquidity or want to use their staked Bitcoin in DeFi.
Q: Can I stake Bitcoin from multiple wallets to the same validator? A: Yes, you can stake from multiple wallets to any validator. Each staking transaction is independent, allowing for flexible portfolio management.
Conclusion
Bitcoin staking on Core allows Bitcoin holders to earn yield while maintaining complete self-custody of their assets. Using Bitcoin's native CLTV timelock functionality, you can participate in Core's validator election process and earn CORE token rewards without transferring your Bitcoin to another blockchain or giving up control of your private keys.
The process is straightforward: create a timelock transaction that votes for Core validators, earn CORE rewards when those validators secure the network, and redeem your Bitcoin when the timelock expires. Your Bitcoin remains on the Bitcoin blockchain throughout the entire process, protected by Bitcoin's consensus rules rather than smart contracts.
For Bitcoin holders seeking higher yields, Core also offers Dual Staking, which combines Bitcoin staking with CORE token staking to unlock enhanced reward tiers. Whether you choose basic Bitcoin staking or explore advanced strategies, Core provides options for earning yield on your Bitcoin while preserving the security and self-custody principles that make Bitcoin unique.
As Bitcoin continues to mature as both a store of value and a productive asset, Core's staking solutions offer a practical way to put idle Bitcoin to work without compromising on security or control.