Core DAO is a blockchain initiative designed to enhance Bitcoin's utility in the decentralized finance space by integrating it with smart contract capabilities and additional blockchain features. It operates on the Core Chain, the first Bitcoin-aligned Ethereum Virtual Machine (EVM) blockchain, utilising a distinctive consensus mechanism known as Satoshi Plus. This mechanism merges Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking, effectively leveraging Bitcoin's robust security and decentralisation.
The native token of the Core network, CORE, is central to its ecosystem, supporting decentralized governance, facilitating utility functions, and enabling peer-to-peer transactions. CORE can be stored in wallets, used in transactions, and traded on digital asset exchanges.
Core DAO supports smart contracts and decentralized applications and is fully compatible with the Ethereum Virtual Machine. This allows developers to easily migrate Ethereum-based dApps to Core Chain. Additionally, Core DAO has introduced coreBTC, a wrapped version of Bitcoin, which boosts Bitcoin's liquidity and functionality within financial applications.
Ultimately, Core DAO seeks to unlock Bitcoin's potential within DeFi while preserving its foundational principles of security and decentralization.
A closer look at CORE’s Architecture
Core Chain is a new Layer 1 blockchain that integrates features from various other Layer 1 networks. Gaining a clear understanding of its structure and functionality is best approached by examining similar blockchain projects:
Major Components, Roles, and Workflows in the Core Network
- Validators: Validators are responsible for producing blocks and validating transactions. Anyone can become a validator by registering and locking up a refundable deposit of CORE tokens.
- Validator Election: Validators are elected based on their hybrid scores for each round. Validators that haven’t been jailed or penalized are considered "live." The live validator set is updated every 200 blocks to maintain stable TPS. If a validator is jailed or slashed, others continue producing blocks.
- Hybrid Score: A validator's hybrid score is calculated based on contributions from Bitcoin miners (DPoW), CORE holders (DPoS), and Bitcoin holders who delegate their BTC. The top 21 validators with the highest hybrid scores from the validator set.
- Bitcoin Miners: Bitcoin miners secure the Bitcoin network using Proof of Work (PoW) and can delegate their PoW to Core validators by embedding certain data in their block's coinbase transaction. This is non-destructive, meaning miners can support both Bitcoin and Core simultaneously.
- Bitcoin Stakers: Bitcoin holders can stake their BTC without losing custody, earning yields while helping secure the Core network. This is the third key aspect of Satoshi Plus consensus.
- CORE Stakers: CORE token holders can delegate their tokens to validators, thereby contributing to the security of the network.
- Relayers: Relayers transmit Bitcoin block headers to Core. To become a relayer, individuals must register and lock up a refundable CORE deposit.
- Verifiers: Verifiers monitor the network for malicious activity. They can report dishonest validators, potentially leading to slashed rewards or jailing. Verifiers are compensated for their role when block rewards are distributed.
- Round: A round lasts for one day, during which the validator set is updated and rewards are distributed. The top 21 validators, based on their hybrid scores, produce blocks for that day, with rewards calculated and distributed at the end of each round.
- Slot: Each day (round) is divided into slots where each validator takes turns producing blocks. The slot duration is currently set at three seconds, and validators follow a round-robin schedule to take turns.
- Epoch: An epoch is a period of 200 slots (10 minutes). Validator status, such as whether they have been jailed, is checked at the end of each epoch to keep TPS stable throughout the round. Validators are only reassessed once per epoch.
CORE Staking and Governance Overview
Staking Overview
The table provides a clear snapshot of key metrics related to the Core blockchain and its integration with the Bitcoin network:
- Total CORE Delegate: 161,345,491 CORE, representing the total amount of CORE tokens delegated to validators. This figure is recalculated at the start of each new round.
- Total BTC Delegate: 5,572.375 BTC, showing the total amount of Bitcoin delegated to Core validators from the Bitcoin network.
- Total Hash Delegate: 64 Bitcoin blocks were mined by Bitcoin network miners who delegated their hash power to Core, reflecting their contribution during the same day of the prior week. This value is recalculated at the beginning of each round.
- Delegated Hash Rate / Bitcoin Total Hash Rate: 285 EH/s of hash power delegated to Core, compared to Bitcoin’s total of 667 EH/s, demonstrating Core’s substantial portion of Bitcoin’s overall security and computational capacity.
- Liquid Staking stCORE Reward Rate: 8.59%, which reflects the projected annualised return for holders of stCORE tokens. These tokens allow CORE holders to earn staking rewards without locking their assets, participating in Core’s delegated proof of stake consensus.
These figures collectively highlight Core’s integration with Bitcoin, demonstrating its significant role in enhancing the overall security of the Bitcoin network while offering attractive staking opportunities to its users.
Delegated Proof of Work (DPoW)
Validators in the Core network are selected based on a hybrid score, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). This section focuses on the DPoW aspect.
Bitcoin miners generate hash power to secure the Bitcoin network, validate transactions, and earn BTC rewards. To stabilise their earnings over time, miners often join mining pools, which combine their hash power to improve the chances of successfully mining a Bitcoin block and receiving BTC rewards.
When a Bitcoin miner decides to delegate their PoW to the Core network, they add specific data to the "op return" field in the coinbase transaction of a Bitcoin block. This data specifies the Core validator they wish to support and the destination for their CORE rewards. Since this delegation happens during the mining process, miners do not need to choose between securing the Bitcoin network or the Core network—they can do both simultaneously.
Bitcoin block headers are transferred to Core Chain via relayers. Each relayer runs an on-chain light client (or uses a similar service) that syncs the blocks mined by Bitcoin pools with the Core network. During a 1-day round, the Core network calculates each validator's DPoW by counting the number of blocks miners delegated to that validator a week earlier. For instance, if the round takes place on a Thursday, Core will tally the hash power delegated to each validator based on the blocks mined the previous Thursday.
The cross-chain communication architecture that enables this process is illustrated in the diagram below:
Delegated Proof of Stake (DPoS)
Having discussed DPoW, let’s explore the other component of Satoshi Plus consensus: Delegated Proof of Stake (DPoS).
DPoS enables holders of both CORE tokens and Bitcoin to participate in the election of the validator set by delegating their assets to their chosen validators. With a minimal staking requirement of just one CORE token, virtually all CORE holders can take part in the governance of the Core network. On the Bitcoin side, the current staking minimum is set at 0.01 BTC, though this can be adjusted in the future through a governance vote.
This system ensures wide participation, allowing both CORE and Bitcoin holders to contribute to network security and validator selection.
CORE Network Overview
- Hour Transactions Chart:
The hourly transactions peaked at around 1.2 million during high-activity periods in mid-2023. These spikes suggest moments of heavy blockchain use, possibly driven by significant network events or dApp launches. The average hour transaction volume ranges between 250,000 to 750,000, demonstrating consistent use throughout each day.
- Daily Transactions Chart:
The daily transactions peaked at 1.5 million around mid-2023, following the mainnet launch in January. There was a steady increase from February onwards, likely driven by growing user engagement and activity after the airdrop. The volume has since stabilised, with daily transactions ranging from 500,000 to 1 million.
- ERC-20 Daily Token Transfer Chart:
The cumulative number of ERC-20 token transfers grew steadily post-launch, surpassing 60 million transfers by mid-2023. This indicates growing DeFi activity and increased use of tokens on the Core blockchain.
- Unique Addresses Chart:
The number of unique addresses interacting with the Core network has climbed past 50 million by May 2023, reflecting rapid user adoption following the airdrop in February. This growth is a strong indicator of increasing participation and usage.
- Average Block Size Chart:
Block sizes have fluctuated between 5 KB and 35 KB with significant spikes correlating with higher transaction volumes, particularly around peak periods in 2023. The largest blocks were created during periods of high network usage, such as the time around the airdrop event.
- Average Block Time Chart:
The average block time has been quite stable, ranging between 2.5 to 4 seconds, which indicates consistent and reliable block production. After the mainnet launch in January 2023, block time stabilised, showing improvements in the network's efficiency.
- Average Gas Price Chart:
After the launch in January 2023, average gas prices settled below 10 gwei, indicating relatively low transaction costs. This low price makes the network attractive for regular use, as transaction fees remain affordable even during busier periods.
- Average Gas Limit Chart:
The gas limit per block increased to 8 million gas units by early 2023, reflecting an expansion in the network’s capacity to handle more complex smart contracts and a greater number of transactions as the user base grew.
- Daily Gas Used Chart:
Daily gas usage surged after the mainnet launch, with peaks around 40 billion gas units per day by mid-2023. This demonstrates an increase in network activity, particularly around events like the airdrop and the subsequent rise in decentralized applications on the Core blockchain.
- Block Count and Rewards Chart:
The block count has remained steady at around 7,000 to 8,000 blocks per day since the mainnet launch. The corresponding block rewards incentivize the validators to maintain network security and support consistent block production.
- Daily Active Core Chain Address:
The number of active addresses interacting with Core has seen significant growth, surpassing 50 million cumulative addresses by May 2023. This growth is consistent with the airdrop in February, driving user engagement and network activity.
- Daily Active ERC-20 Address:
The daily active ERC-20 addresses have also seen steady growth, reaching 50 million cumulative addresses by May 2023. This indicates that token-related activities on Core, such as DeFi protocols, have become an integral part of the network's usage, particularly after the mainnet's release.
In summary, following Core’s mainnet launch in January 2023 and its notable airdrop in February, the network saw a surge in user activity, reflected in the high transaction volumes, gas usage, and growing number of active addresses. The network has maintained efficient block times and low transaction fees, making it an attractive platform for both users and developers. This growth reflects Core’s expanding presence in the blockchain ecosystem, particularly in DeFi and token transfers.
Ecosystem
The table highlights the top 10 protocols operating within the Core DAO ecosystem, across categories like lending, decentralised exchanges, liquid staking, and derivatives. The total TVL (Total Value Locked) of Core DAO amounts to $353.61 million, which indicates the following insights:
- Colend Protocol leads the ecosystem in terms of TVL, with $158.86 million locked in lending, making up approximately 45% of Core DAO's total TVL. This shows strong demand for lending services on the platform.
- Pell Network, focused on restaking, is the second largest with $146.04 million, accounting for about 41% of the total TVL. The high proportion of funds locked here suggests that restaking is a critical service in the Core DAO ecosystem.
- The remaining protocols, including COREX Network, Core Earn, and Glyph Exchange, contribute significantly less TVL in comparison. For instance, COREX Network, with $34.54 million (around 10% of the total), is the largest decentralized exchange, indicating moderate interest in Dexes compared to lending and restaking.
- Core Earn’s $10.1 million in liquid staking highlights the nascent but growing demand for staking-related services, contributing around 3% to the overall TVL.
- Other protocols like Glyph Exchange and Avalon Finance contribute smaller amounts, while Sushi, a well-known Dex, only manages $1.09 million, suggesting competition with other platforms or lower activity in this category.
- The protocols in the bottom half of the list, including ArcherSwap, iZiSwap, and NLX Protocol, collectively contribute less than 1% each, indicating their relatively minor role in Core DAO's ecosystem at present.
In conclusion, the Core DAO ecosystem is primarily driven by lending and restaking, which account for over 86% of the total TVL. Decentralized exchanges and liquid staking, while present, have a smaller market share, indicating growth potential in these areas. Overall, the ecosystem shows a concentration of value in just a few key protocols.
$CORE Value Accrual
Tokenomics of CORE Token
The tokenomics of CORE, the native utility and governance token for the Core blockchain, is structured to prioritise decentralization, sustainability, and long-term incentive alignment. With a capped supply similar to Bitcoin's scarcity model and a distribution strategy centred on decentralization, Core is one of the most equitably launched blockchains to date.
Token Distribution
CORE's tokenomics emphasize long-term sustainability and decentralization, drawing inspiration from Bitcoin's monetary policy and a fair distribution of governance power. CORE tokens underpin the Core ecosystem and are allocated strategically across several categories to balance the network.
The total supply of 2.1 billion CORE tokens is distributed as follows:
- Node Mining (39.995% - 839.9 million CORE tokens): To incentivize network security, nodes receive rewards over approximately 81 years, reflecting the long-term commitment of participants.
- Users (25.029% - 525.6 million CORE tokens): A significant portion is allocated for airdrops to decentralized users, ensuring a user-centric and inclusive blockchain.
- Contributors (15% - 315 million CORE tokens): This allocation rewards past and future contributors who support and maintain the Core network.
- Reserves (10% - 210 million CORE tokens): A strategic reserve ensures funding for the foundation without concentrating token supply.
- Treasury (9.5% - 199.5 million CORE tokens): The treasury supports ecosystem development and provides the DAO with resources for growth.
- Relayer Rewards (0.476% - 10 million CORE tokens): Relayers, essential to network security, are rewarded through transaction fees and tokens.
Token Utility CORE tokens play several key roles in the Core network:
- Transaction Fees: CORE tokens are used for paying transaction and smart contract fees.
- Staking: Users can stake both Bitcoin and CORE tokens, securing the network and earning rewards.
- Governance: CORE holders participate in on-chain governance, influencing the network's future.
Supply and Emissions
With a hard cap of 2.1 billion tokens, CORE follows Bitcoin’s scarcity principle to resist inflation. CORE rewards are distributed over 81 years to ensure sustainable network participation. Annual block rewards decrease by 3.6%, maintaining a deflationary pressure.
Decentralisation and Strategy Core’s long-term strategy focuses on stability, decentralisation, and resilience. By distributing tokens to builders, users, and long-term supporters, Core fosters a diverse and decentralised community. The project prioritises robustness over rapid expansion, ensuring the network is strong enough to withstand market volatility.
Sound Monetary Policy Core implements a deflationary mechanism by burning a portion of transaction fees and block rewards, as determined by the DAO, so the token supply approaches but does not exceed the hard cap.
Incentives for Bitcoin Network Participants
- Miners’ Supplemental Income: As Bitcoin block rewards diminish, CORE provides an additional revenue stream for miners who become validators, rewarding them for both Bitcoin and CORE transactions.
- Bitcoin HODLers: Non-custodial Bitcoin staking allows long-term holders to earn rewards without moving their assets from the Bitcoin blockchain, maintaining Bitcoin's high level of security.
Conclusion CORE's tokenomics are designed to support a decentralised and sustainable economy within the Core network. With clear utility, a hard cap on supply, and a long-term reward distribution, Core balances the principles of sound money with the needs of an evolving blockchain ecosystem. This model aims to attract committed participants who will contribute to the network's strength and longevity.
Conclusion
In conclusion, Core DAO represents an innovative approach to integrating Bitcoin with decentralised finance through its Satoshi Plus consensus mechanism, which combines Delegated Proof of Work and Delegated Proof of Stake. This system allows Bitcoin and CORE token holders to participate in network governance and staking without losing custody of their assets. The network aims to enhance security and decentralisation while expanding the utility of Bitcoin within the decentralised finance space.
Since its mainnet launch in January 2023 and the airdrop in February, Core DAO has shown growth in key metrics, including transaction volumes, active addresses, and total value locked. The architecture of the network supports decentralised applications and smart contracts, with full compatibility with the Ethereum Virtual Machine. This compatibility allows developers to migrate Ethereum-based decentralised applications to the Core Chain, potentially broadening its ecosystem. The introduction of coreBTC, a wrapped version of Bitcoin, also enhances Bitcoin’s liquidity for use in financial applications.
The Core DAO ecosystem is primarily driven by lending and restaking services. Colend Protocol and Pell Network account for over 86% of the total value locked, which currently stands at $353.61 million. These services indicate a demand for lending and staking within the network, though other areas, such as decentralised exchanges and liquid staking, represent smaller portions of the ecosystem. These sectors may present opportunities for future development.
The CORE token plays a central role in the network’s governance, staking, and utility functions. With a fixed supply of 2.1 billion tokens and a deflationary burn mechanism, CORE is designed to limit inflation and promote scarcity over time. The token is used for transaction fees, network governance, and staking, which contributes to securing the network.
In summary, Core DAO combines Bitcoin’s security features with decentralised finance applications and aims to broaden the functionality of Bitcoin within decentralised finance. The network’s unique consensus mechanism and integration of smart contracts suggest it has potential for further growth in the decentralised finance space. As Core DAO continues to develop, it may contribute to shaping the future of decentralised finance through its focus on security, scalability, and expanded use cases for digital assets.
Sources:
https://docs.coredao.org/docs/Learn/introduction/what-is-core-chain
https://docs.coredao.org/docs/Learn/introduction/why-core-chain
https://docs.coredao.org/docs/Learn/economics/core-token/tokenomics-and-utility
https://whitepaper.coredao.org/core-white-paper-v1.0.7
whitepaper.coredao.org/core-white-paper-v1.0.7/introduction
whitepaper.coredao.org/core-white-paper-v1.0.7/core-objectives-and-principles
whitepaper.coredao.org/core-white-paper-v1.0.7/background
https://stake.coredao.org/
https://scan.coredao.org/
https://scan.coredao.org/charts
https://scan.coredao.org/topstat/overview
https://x.com/Coredao_Org
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Core DAO is a blockchain initiative designed to enhance Bitcoin's utility in the decentralized finance space by integrating it with smart contract capabilities and additional blockchain features. It operates on the Core Chain, the first Bitcoin-aligned Ethereum Virtual Machine (EVM) blockchain, utilising a distinctive consensus mechanism known as Satoshi Plus. This mechanism merges Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking, effectively leveraging Bitcoin's robust security and decentralisation.
The native token of the Core network, CORE, is central to its ecosystem, supporting decentralized governance, facilitating utility functions, and enabling peer-to-peer transactions. CORE can be stored in wallets, used in transactions, and traded on digital asset exchanges.
Core DAO supports smart contracts and decentralized applications and is fully compatible with the Ethereum Virtual Machine. This allows developers to easily migrate Ethereum-based dApps to Core Chain. Additionally, Core DAO has introduced coreBTC, a wrapped version of Bitcoin, which boosts Bitcoin's liquidity and functionality within financial applications.
Ultimately, Core DAO seeks to unlock Bitcoin's potential within DeFi while preserving its foundational principles of security and decentralization.
A closer look at CORE’s Architecture
Core Chain is a new Layer 1 blockchain that integrates features from various other Layer 1 networks. Gaining a clear understanding of its structure and functionality is best approached by examining similar blockchain projects:
Major Components, Roles, and Workflows in the Core Network
- Validators: Validators are responsible for producing blocks and validating transactions. Anyone can become a validator by registering and locking up a refundable deposit of CORE tokens.
- Validator Election: Validators are elected based on their hybrid scores for each round. Validators that haven’t been jailed or penalized are considered "live." The live validator set is updated every 200 blocks to maintain stable TPS. If a validator is jailed or slashed, others continue producing blocks.
- Hybrid Score: A validator's hybrid score is calculated based on contributions from Bitcoin miners (DPoW), CORE holders (DPoS), and Bitcoin holders who delegate their BTC. The top 21 validators with the highest hybrid scores from the validator set.
- Bitcoin Miners: Bitcoin miners secure the Bitcoin network using Proof of Work (PoW) and can delegate their PoW to Core validators by embedding certain data in their block's coinbase transaction. This is non-destructive, meaning miners can support both Bitcoin and Core simultaneously.
- Bitcoin Stakers: Bitcoin holders can stake their BTC without losing custody, earning yields while helping secure the Core network. This is the third key aspect of Satoshi Plus consensus.
- CORE Stakers: CORE token holders can delegate their tokens to validators, thereby contributing to the security of the network.
- Relayers: Relayers transmit Bitcoin block headers to Core. To become a relayer, individuals must register and lock up a refundable CORE deposit.
- Verifiers: Verifiers monitor the network for malicious activity. They can report dishonest validators, potentially leading to slashed rewards or jailing. Verifiers are compensated for their role when block rewards are distributed.
- Round: A round lasts for one day, during which the validator set is updated and rewards are distributed. The top 21 validators, based on their hybrid scores, produce blocks for that day, with rewards calculated and distributed at the end of each round.
- Slot: Each day (round) is divided into slots where each validator takes turns producing blocks. The slot duration is currently set at three seconds, and validators follow a round-robin schedule to take turns.
- Epoch: An epoch is a period of 200 slots (10 minutes). Validator status, such as whether they have been jailed, is checked at the end of each epoch to keep TPS stable throughout the round. Validators are only reassessed once per epoch.
CORE Staking and Governance Overview
Staking Overview
The table provides a clear snapshot of key metrics related to the Core blockchain and its integration with the Bitcoin network:
- Total CORE Delegate: 161,345,491 CORE, representing the total amount of CORE tokens delegated to validators. This figure is recalculated at the start of each new round.
- Total BTC Delegate: 5,572.375 BTC, showing the total amount of Bitcoin delegated to Core validators from the Bitcoin network.
- Total Hash Delegate: 64 Bitcoin blocks were mined by Bitcoin network miners who delegated their hash power to Core, reflecting their contribution during the same day of the prior week. This value is recalculated at the beginning of each round.
- Delegated Hash Rate / Bitcoin Total Hash Rate: 285 EH/s of hash power delegated to Core, compared to Bitcoin’s total of 667 EH/s, demonstrating Core’s substantial portion of Bitcoin’s overall security and computational capacity.
- Liquid Staking stCORE Reward Rate: 8.59%, which reflects the projected annualised return for holders of stCORE tokens. These tokens allow CORE holders to earn staking rewards without locking their assets, participating in Core’s delegated proof of stake consensus.
These figures collectively highlight Core’s integration with Bitcoin, demonstrating its significant role in enhancing the overall security of the Bitcoin network while offering attractive staking opportunities to its users.
Delegated Proof of Work (DPoW)
Validators in the Core network are selected based on a hybrid score, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). This section focuses on the DPoW aspect.
Bitcoin miners generate hash power to secure the Bitcoin network, validate transactions, and earn BTC rewards. To stabilise their earnings over time, miners often join mining pools, which combine their hash power to improve the chances of successfully mining a Bitcoin block and receiving BTC rewards.
When a Bitcoin miner decides to delegate their PoW to the Core network, they add specific data to the "op return" field in the coinbase transaction of a Bitcoin block. This data specifies the Core validator they wish to support and the destination for their CORE rewards. Since this delegation happens during the mining process, miners do not need to choose between securing the Bitcoin network or the Core network—they can do both simultaneously.
Bitcoin block headers are transferred to Core Chain via relayers. Each relayer runs an on-chain light client (or uses a similar service) that syncs the blocks mined by Bitcoin pools with the Core network. During a 1-day round, the Core network calculates each validator's DPoW by counting the number of blocks miners delegated to that validator a week earlier. For instance, if the round takes place on a Thursday, Core will tally the hash power delegated to each validator based on the blocks mined the previous Thursday.
The cross-chain communication architecture that enables this process is illustrated in the diagram below:
Delegated Proof of Stake (DPoS)
Having discussed DPoW, let’s explore the other component of Satoshi Plus consensus: Delegated Proof of Stake (DPoS).
DPoS enables holders of both CORE tokens and Bitcoin to participate in the election of the validator set by delegating their assets to their chosen validators. With a minimal staking requirement of just one CORE token, virtually all CORE holders can take part in the governance of the Core network. On the Bitcoin side, the current staking minimum is set at 0.01 BTC, though this can be adjusted in the future through a governance vote.
This system ensures wide participation, allowing both CORE and Bitcoin holders to contribute to network security and validator selection.
CORE Network Overview
- Hour Transactions Chart:
The hourly transactions peaked at around 1.2 million during high-activity periods in mid-2023. These spikes suggest moments of heavy blockchain use, possibly driven by significant network events or dApp launches. The average hour transaction volume ranges between 250,000 to 750,000, demonstrating consistent use throughout each day.
- Daily Transactions Chart:
The daily transactions peaked at 1.5 million around mid-2023, following the mainnet launch in January. There was a steady increase from February onwards, likely driven by growing user engagement and activity after the airdrop. The volume has since stabilised, with daily transactions ranging from 500,000 to 1 million.
- ERC-20 Daily Token Transfer Chart:
The cumulative number of ERC-20 token transfers grew steadily post-launch, surpassing 60 million transfers by mid-2023. This indicates growing DeFi activity and increased use of tokens on the Core blockchain.
- Unique Addresses Chart:
The number of unique addresses interacting with the Core network has climbed past 50 million by May 2023, reflecting rapid user adoption following the airdrop in February. This growth is a strong indicator of increasing participation and usage.
- Average Block Size Chart:
Block sizes have fluctuated between 5 KB and 35 KB with significant spikes correlating with higher transaction volumes, particularly around peak periods in 2023. The largest blocks were created during periods of high network usage, such as the time around the airdrop event.
- Average Block Time Chart:
The average block time has been quite stable, ranging between 2.5 to 4 seconds, which indicates consistent and reliable block production. After the mainnet launch in January 2023, block time stabilised, showing improvements in the network's efficiency.
- Average Gas Price Chart:
After the launch in January 2023, average gas prices settled below 10 gwei, indicating relatively low transaction costs. This low price makes the network attractive for regular use, as transaction fees remain affordable even during busier periods.
- Average Gas Limit Chart:
The gas limit per block increased to 8 million gas units by early 2023, reflecting an expansion in the network’s capacity to handle more complex smart contracts and a greater number of transactions as the user base grew.
- Daily Gas Used Chart:
Daily gas usage surged after the mainnet launch, with peaks around 40 billion gas units per day by mid-2023. This demonstrates an increase in network activity, particularly around events like the airdrop and the subsequent rise in decentralized applications on the Core blockchain.
- Block Count and Rewards Chart:
The block count has remained steady at around 7,000 to 8,000 blocks per day since the mainnet launch. The corresponding block rewards incentivize the validators to maintain network security and support consistent block production.
- Daily Active Core Chain Address:
The number of active addresses interacting with Core has seen significant growth, surpassing 50 million cumulative addresses by May 2023. This growth is consistent with the airdrop in February, driving user engagement and network activity.
- Daily Active ERC-20 Address:
The daily active ERC-20 addresses have also seen steady growth, reaching 50 million cumulative addresses by May 2023. This indicates that token-related activities on Core, such as DeFi protocols, have become an integral part of the network's usage, particularly after the mainnet's release.
In summary, following Core’s mainnet launch in January 2023 and its notable airdrop in February, the network saw a surge in user activity, reflected in the high transaction volumes, gas usage, and growing number of active addresses. The network has maintained efficient block times and low transaction fees, making it an attractive platform for both users and developers. This growth reflects Core’s expanding presence in the blockchain ecosystem, particularly in DeFi and token transfers.
Ecosystem
The table highlights the top 10 protocols operating within the Core DAO ecosystem, across categories like lending, decentralised exchanges, liquid staking, and derivatives. The total TVL (Total Value Locked) of Core DAO amounts to $353.61 million, which indicates the following insights:
- Colend Protocol leads the ecosystem in terms of TVL, with $158.86 million locked in lending, making up approximately 45% of Core DAO's total TVL. This shows strong demand for lending services on the platform.
- Pell Network, focused on restaking, is the second largest with $146.04 million, accounting for about 41% of the total TVL. The high proportion of funds locked here suggests that restaking is a critical service in the Core DAO ecosystem.
- The remaining protocols, including COREX Network, Core Earn, and Glyph Exchange, contribute significantly less TVL in comparison. For instance, COREX Network, with $34.54 million (around 10% of the total), is the largest decentralized exchange, indicating moderate interest in Dexes compared to lending and restaking.
- Core Earn’s $10.1 million in liquid staking highlights the nascent but growing demand for staking-related services, contributing around 3% to the overall TVL.
- Other protocols like Glyph Exchange and Avalon Finance contribute smaller amounts, while Sushi, a well-known Dex, only manages $1.09 million, suggesting competition with other platforms or lower activity in this category.
- The protocols in the bottom half of the list, including ArcherSwap, iZiSwap, and NLX Protocol, collectively contribute less than 1% each, indicating their relatively minor role in Core DAO's ecosystem at present.
In conclusion, the Core DAO ecosystem is primarily driven by lending and restaking, which account for over 86% of the total TVL. Decentralized exchanges and liquid staking, while present, have a smaller market share, indicating growth potential in these areas. Overall, the ecosystem shows a concentration of value in just a few key protocols.
$CORE Value Accrual
Tokenomics of CORE Token
The tokenomics of CORE, the native utility and governance token for the Core blockchain, is structured to prioritise decentralization, sustainability, and long-term incentive alignment. With a capped supply similar to Bitcoin's scarcity model and a distribution strategy centred on decentralization, Core is one of the most equitably launched blockchains to date.
Token Distribution
CORE's tokenomics emphasize long-term sustainability and decentralization, drawing inspiration from Bitcoin's monetary policy and a fair distribution of governance power. CORE tokens underpin the Core ecosystem and are allocated strategically across several categories to balance the network.
The total supply of 2.1 billion CORE tokens is distributed as follows:
- Node Mining (39.995% - 839.9 million CORE tokens): To incentivize network security, nodes receive rewards over approximately 81 years, reflecting the long-term commitment of participants.
- Users (25.029% - 525.6 million CORE tokens): A significant portion is allocated for airdrops to decentralized users, ensuring a user-centric and inclusive blockchain.
- Contributors (15% - 315 million CORE tokens): This allocation rewards past and future contributors who support and maintain the Core network.
- Reserves (10% - 210 million CORE tokens): A strategic reserve ensures funding for the foundation without concentrating token supply.
- Treasury (9.5% - 199.5 million CORE tokens): The treasury supports ecosystem development and provides the DAO with resources for growth.
- Relayer Rewards (0.476% - 10 million CORE tokens): Relayers, essential to network security, are rewarded through transaction fees and tokens.
Token Utility CORE tokens play several key roles in the Core network:
- Transaction Fees: CORE tokens are used for paying transaction and smart contract fees.
- Staking: Users can stake both Bitcoin and CORE tokens, securing the network and earning rewards.
- Governance: CORE holders participate in on-chain governance, influencing the network's future.
Supply and Emissions
With a hard cap of 2.1 billion tokens, CORE follows Bitcoin’s scarcity principle to resist inflation. CORE rewards are distributed over 81 years to ensure sustainable network participation. Annual block rewards decrease by 3.6%, maintaining a deflationary pressure.
Decentralisation and Strategy Core’s long-term strategy focuses on stability, decentralisation, and resilience. By distributing tokens to builders, users, and long-term supporters, Core fosters a diverse and decentralised community. The project prioritises robustness over rapid expansion, ensuring the network is strong enough to withstand market volatility.
Sound Monetary Policy Core implements a deflationary mechanism by burning a portion of transaction fees and block rewards, as determined by the DAO, so the token supply approaches but does not exceed the hard cap.
Incentives for Bitcoin Network Participants
- Miners’ Supplemental Income: As Bitcoin block rewards diminish, CORE provides an additional revenue stream for miners who become validators, rewarding them for both Bitcoin and CORE transactions.
- Bitcoin HODLers: Non-custodial Bitcoin staking allows long-term holders to earn rewards without moving their assets from the Bitcoin blockchain, maintaining Bitcoin's high level of security.
Conclusion CORE's tokenomics are designed to support a decentralised and sustainable economy within the Core network. With clear utility, a hard cap on supply, and a long-term reward distribution, Core balances the principles of sound money with the needs of an evolving blockchain ecosystem. This model aims to attract committed participants who will contribute to the network's strength and longevity.
Conclusion
In conclusion, Core DAO represents an innovative approach to integrating Bitcoin with decentralised finance through its Satoshi Plus consensus mechanism, which combines Delegated Proof of Work and Delegated Proof of Stake. This system allows Bitcoin and CORE token holders to participate in network governance and staking without losing custody of their assets. The network aims to enhance security and decentralisation while expanding the utility of Bitcoin within the decentralised finance space.
Since its mainnet launch in January 2023 and the airdrop in February, Core DAO has shown growth in key metrics, including transaction volumes, active addresses, and total value locked. The architecture of the network supports decentralised applications and smart contracts, with full compatibility with the Ethereum Virtual Machine. This compatibility allows developers to migrate Ethereum-based decentralised applications to the Core Chain, potentially broadening its ecosystem. The introduction of coreBTC, a wrapped version of Bitcoin, also enhances Bitcoin’s liquidity for use in financial applications.
The Core DAO ecosystem is primarily driven by lending and restaking services. Colend Protocol and Pell Network account for over 86% of the total value locked, which currently stands at $353.61 million. These services indicate a demand for lending and staking within the network, though other areas, such as decentralised exchanges and liquid staking, represent smaller portions of the ecosystem. These sectors may present opportunities for future development.
The CORE token plays a central role in the network’s governance, staking, and utility functions. With a fixed supply of 2.1 billion tokens and a deflationary burn mechanism, CORE is designed to limit inflation and promote scarcity over time. The token is used for transaction fees, network governance, and staking, which contributes to securing the network.
In summary, Core DAO combines Bitcoin’s security features with decentralised finance applications and aims to broaden the functionality of Bitcoin within decentralised finance. The network’s unique consensus mechanism and integration of smart contracts suggest it has potential for further growth in the decentralised finance space. As Core DAO continues to develop, it may contribute to shaping the future of decentralised finance through its focus on security, scalability, and expanded use cases for digital assets.
Sources:
https://docs.coredao.org/docs/Learn/introduction/what-is-core-chain
https://docs.coredao.org/docs/Learn/introduction/why-core-chain
https://docs.coredao.org/docs/Learn/economics/core-token/tokenomics-and-utility
https://whitepaper.coredao.org/core-white-paper-v1.0.7
whitepaper.coredao.org/core-white-paper-v1.0.7/introduction
whitepaper.coredao.org/core-white-paper-v1.0.7/core-objectives-and-principles
whitepaper.coredao.org/core-white-paper-v1.0.7/background
https://stake.coredao.org/
https://scan.coredao.org/
https://scan.coredao.org/charts
https://scan.coredao.org/topstat/overview
https://x.com/Coredao_Org
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Core DAO is a blockchain initiative designed to enhance Bitcoin's utility in the decentralized finance space by integrating it with smart contract capabilities and additional blockchain features. It operates on the Core Chain, the first Bitcoin-aligned Ethereum Virtual Machine (EVM) blockchain, utilising a distinctive consensus mechanism known as Satoshi Plus. This mechanism merges Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking, effectively leveraging Bitcoin's robust security and decentralisation.
The native token of the Core network, CORE, is central to its ecosystem, supporting decentralized governance, facilitating utility functions, and enabling peer-to-peer transactions. CORE can be stored in wallets, used in transactions, and traded on digital asset exchanges.
Core DAO supports smart contracts and decentralized applications and is fully compatible with the Ethereum Virtual Machine. This allows developers to easily migrate Ethereum-based dApps to Core Chain. Additionally, Core DAO has introduced coreBTC, a wrapped version of Bitcoin, which boosts Bitcoin's liquidity and functionality within financial applications.
Ultimately, Core DAO seeks to unlock Bitcoin's potential within DeFi while preserving its foundational principles of security and decentralization.
A closer look at CORE’s Architecture
Core Chain is a new Layer 1 blockchain that integrates features from various other Layer 1 networks. Gaining a clear understanding of its structure and functionality is best approached by examining similar blockchain projects:
Major Components, Roles, and Workflows in the Core Network
- Validators: Validators are responsible for producing blocks and validating transactions. Anyone can become a validator by registering and locking up a refundable deposit of CORE tokens.
- Validator Election: Validators are elected based on their hybrid scores for each round. Validators that haven’t been jailed or penalized are considered "live." The live validator set is updated every 200 blocks to maintain stable TPS. If a validator is jailed or slashed, others continue producing blocks.
- Hybrid Score: A validator's hybrid score is calculated based on contributions from Bitcoin miners (DPoW), CORE holders (DPoS), and Bitcoin holders who delegate their BTC. The top 21 validators with the highest hybrid scores from the validator set.
- Bitcoin Miners: Bitcoin miners secure the Bitcoin network using Proof of Work (PoW) and can delegate their PoW to Core validators by embedding certain data in their block's coinbase transaction. This is non-destructive, meaning miners can support both Bitcoin and Core simultaneously.
- Bitcoin Stakers: Bitcoin holders can stake their BTC without losing custody, earning yields while helping secure the Core network. This is the third key aspect of Satoshi Plus consensus.
- CORE Stakers: CORE token holders can delegate their tokens to validators, thereby contributing to the security of the network.
- Relayers: Relayers transmit Bitcoin block headers to Core. To become a relayer, individuals must register and lock up a refundable CORE deposit.
- Verifiers: Verifiers monitor the network for malicious activity. They can report dishonest validators, potentially leading to slashed rewards or jailing. Verifiers are compensated for their role when block rewards are distributed.
- Round: A round lasts for one day, during which the validator set is updated and rewards are distributed. The top 21 validators, based on their hybrid scores, produce blocks for that day, with rewards calculated and distributed at the end of each round.
- Slot: Each day (round) is divided into slots where each validator takes turns producing blocks. The slot duration is currently set at three seconds, and validators follow a round-robin schedule to take turns.
- Epoch: An epoch is a period of 200 slots (10 minutes). Validator status, such as whether they have been jailed, is checked at the end of each epoch to keep TPS stable throughout the round. Validators are only reassessed once per epoch.
CORE Staking and Governance Overview
Staking Overview
The table provides a clear snapshot of key metrics related to the Core blockchain and its integration with the Bitcoin network:
- Total CORE Delegate: 161,345,491 CORE, representing the total amount of CORE tokens delegated to validators. This figure is recalculated at the start of each new round.
- Total BTC Delegate: 5,572.375 BTC, showing the total amount of Bitcoin delegated to Core validators from the Bitcoin network.
- Total Hash Delegate: 64 Bitcoin blocks were mined by Bitcoin network miners who delegated their hash power to Core, reflecting their contribution during the same day of the prior week. This value is recalculated at the beginning of each round.
- Delegated Hash Rate / Bitcoin Total Hash Rate: 285 EH/s of hash power delegated to Core, compared to Bitcoin’s total of 667 EH/s, demonstrating Core’s substantial portion of Bitcoin’s overall security and computational capacity.
- Liquid Staking stCORE Reward Rate: 8.59%, which reflects the projected annualised return for holders of stCORE tokens. These tokens allow CORE holders to earn staking rewards without locking their assets, participating in Core’s delegated proof of stake consensus.
These figures collectively highlight Core’s integration with Bitcoin, demonstrating its significant role in enhancing the overall security of the Bitcoin network while offering attractive staking opportunities to its users.
Delegated Proof of Work (DPoW)
Validators in the Core network are selected based on a hybrid score, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). This section focuses on the DPoW aspect.
Bitcoin miners generate hash power to secure the Bitcoin network, validate transactions, and earn BTC rewards. To stabilise their earnings over time, miners often join mining pools, which combine their hash power to improve the chances of successfully mining a Bitcoin block and receiving BTC rewards.
When a Bitcoin miner decides to delegate their PoW to the Core network, they add specific data to the "op return" field in the coinbase transaction of a Bitcoin block. This data specifies the Core validator they wish to support and the destination for their CORE rewards. Since this delegation happens during the mining process, miners do not need to choose between securing the Bitcoin network or the Core network—they can do both simultaneously.
Bitcoin block headers are transferred to Core Chain via relayers. Each relayer runs an on-chain light client (or uses a similar service) that syncs the blocks mined by Bitcoin pools with the Core network. During a 1-day round, the Core network calculates each validator's DPoW by counting the number of blocks miners delegated to that validator a week earlier. For instance, if the round takes place on a Thursday, Core will tally the hash power delegated to each validator based on the blocks mined the previous Thursday.
The cross-chain communication architecture that enables this process is illustrated in the diagram below:
Delegated Proof of Stake (DPoS)
Having discussed DPoW, let’s explore the other component of Satoshi Plus consensus: Delegated Proof of Stake (DPoS).
DPoS enables holders of both CORE tokens and Bitcoin to participate in the election of the validator set by delegating their assets to their chosen validators. With a minimal staking requirement of just one CORE token, virtually all CORE holders can take part in the governance of the Core network. On the Bitcoin side, the current staking minimum is set at 0.01 BTC, though this can be adjusted in the future through a governance vote.
This system ensures wide participation, allowing both CORE and Bitcoin holders to contribute to network security and validator selection.
CORE Network Overview
- Hour Transactions Chart:
The hourly transactions peaked at around 1.2 million during high-activity periods in mid-2023. These spikes suggest moments of heavy blockchain use, possibly driven by significant network events or dApp launches. The average hour transaction volume ranges between 250,000 to 750,000, demonstrating consistent use throughout each day.
- Daily Transactions Chart:
The daily transactions peaked at 1.5 million around mid-2023, following the mainnet launch in January. There was a steady increase from February onwards, likely driven by growing user engagement and activity after the airdrop. The volume has since stabilised, with daily transactions ranging from 500,000 to 1 million.
- ERC-20 Daily Token Transfer Chart:
The cumulative number of ERC-20 token transfers grew steadily post-launch, surpassing 60 million transfers by mid-2023. This indicates growing DeFi activity and increased use of tokens on the Core blockchain.
- Unique Addresses Chart:
The number of unique addresses interacting with the Core network has climbed past 50 million by May 2023, reflecting rapid user adoption following the airdrop in February. This growth is a strong indicator of increasing participation and usage.
- Average Block Size Chart:
Block sizes have fluctuated between 5 KB and 35 KB with significant spikes correlating with higher transaction volumes, particularly around peak periods in 2023. The largest blocks were created during periods of high network usage, such as the time around the airdrop event.
- Average Block Time Chart:
The average block time has been quite stable, ranging between 2.5 to 4 seconds, which indicates consistent and reliable block production. After the mainnet launch in January 2023, block time stabilised, showing improvements in the network's efficiency.
- Average Gas Price Chart:
After the launch in January 2023, average gas prices settled below 10 gwei, indicating relatively low transaction costs. This low price makes the network attractive for regular use, as transaction fees remain affordable even during busier periods.
- Average Gas Limit Chart:
The gas limit per block increased to 8 million gas units by early 2023, reflecting an expansion in the network’s capacity to handle more complex smart contracts and a greater number of transactions as the user base grew.
- Daily Gas Used Chart:
Daily gas usage surged after the mainnet launch, with peaks around 40 billion gas units per day by mid-2023. This demonstrates an increase in network activity, particularly around events like the airdrop and the subsequent rise in decentralized applications on the Core blockchain.
- Block Count and Rewards Chart:
The block count has remained steady at around 7,000 to 8,000 blocks per day since the mainnet launch. The corresponding block rewards incentivize the validators to maintain network security and support consistent block production.
- Daily Active Core Chain Address:
The number of active addresses interacting with Core has seen significant growth, surpassing 50 million cumulative addresses by May 2023. This growth is consistent with the airdrop in February, driving user engagement and network activity.
- Daily Active ERC-20 Address:
The daily active ERC-20 addresses have also seen steady growth, reaching 50 million cumulative addresses by May 2023. This indicates that token-related activities on Core, such as DeFi protocols, have become an integral part of the network's usage, particularly after the mainnet's release.
In summary, following Core’s mainnet launch in January 2023 and its notable airdrop in February, the network saw a surge in user activity, reflected in the high transaction volumes, gas usage, and growing number of active addresses. The network has maintained efficient block times and low transaction fees, making it an attractive platform for both users and developers. This growth reflects Core’s expanding presence in the blockchain ecosystem, particularly in DeFi and token transfers.
Ecosystem
The table highlights the top 10 protocols operating within the Core DAO ecosystem, across categories like lending, decentralised exchanges, liquid staking, and derivatives. The total TVL (Total Value Locked) of Core DAO amounts to $353.61 million, which indicates the following insights:
- Colend Protocol leads the ecosystem in terms of TVL, with $158.86 million locked in lending, making up approximately 45% of Core DAO's total TVL. This shows strong demand for lending services on the platform.
- Pell Network, focused on restaking, is the second largest with $146.04 million, accounting for about 41% of the total TVL. The high proportion of funds locked here suggests that restaking is a critical service in the Core DAO ecosystem.
- The remaining protocols, including COREX Network, Core Earn, and Glyph Exchange, contribute significantly less TVL in comparison. For instance, COREX Network, with $34.54 million (around 10% of the total), is the largest decentralized exchange, indicating moderate interest in Dexes compared to lending and restaking.
- Core Earn’s $10.1 million in liquid staking highlights the nascent but growing demand for staking-related services, contributing around 3% to the overall TVL.
- Other protocols like Glyph Exchange and Avalon Finance contribute smaller amounts, while Sushi, a well-known Dex, only manages $1.09 million, suggesting competition with other platforms or lower activity in this category.
- The protocols in the bottom half of the list, including ArcherSwap, iZiSwap, and NLX Protocol, collectively contribute less than 1% each, indicating their relatively minor role in Core DAO's ecosystem at present.
In conclusion, the Core DAO ecosystem is primarily driven by lending and restaking, which account for over 86% of the total TVL. Decentralized exchanges and liquid staking, while present, have a smaller market share, indicating growth potential in these areas. Overall, the ecosystem shows a concentration of value in just a few key protocols.
$CORE Value Accrual
Tokenomics of CORE Token
The tokenomics of CORE, the native utility and governance token for the Core blockchain, is structured to prioritise decentralization, sustainability, and long-term incentive alignment. With a capped supply similar to Bitcoin's scarcity model and a distribution strategy centred on decentralization, Core is one of the most equitably launched blockchains to date.
Token Distribution
CORE's tokenomics emphasize long-term sustainability and decentralization, drawing inspiration from Bitcoin's monetary policy and a fair distribution of governance power. CORE tokens underpin the Core ecosystem and are allocated strategically across several categories to balance the network.
The total supply of 2.1 billion CORE tokens is distributed as follows:
- Node Mining (39.995% - 839.9 million CORE tokens): To incentivize network security, nodes receive rewards over approximately 81 years, reflecting the long-term commitment of participants.
- Users (25.029% - 525.6 million CORE tokens): A significant portion is allocated for airdrops to decentralized users, ensuring a user-centric and inclusive blockchain.
- Contributors (15% - 315 million CORE tokens): This allocation rewards past and future contributors who support and maintain the Core network.
- Reserves (10% - 210 million CORE tokens): A strategic reserve ensures funding for the foundation without concentrating token supply.
- Treasury (9.5% - 199.5 million CORE tokens): The treasury supports ecosystem development and provides the DAO with resources for growth.
- Relayer Rewards (0.476% - 10 million CORE tokens): Relayers, essential to network security, are rewarded through transaction fees and tokens.
Token Utility CORE tokens play several key roles in the Core network:
- Transaction Fees: CORE tokens are used for paying transaction and smart contract fees.
- Staking: Users can stake both Bitcoin and CORE tokens, securing the network and earning rewards.
- Governance: CORE holders participate in on-chain governance, influencing the network's future.
Supply and Emissions
With a hard cap of 2.1 billion tokens, CORE follows Bitcoin’s scarcity principle to resist inflation. CORE rewards are distributed over 81 years to ensure sustainable network participation. Annual block rewards decrease by 3.6%, maintaining a deflationary pressure.
Decentralisation and Strategy Core’s long-term strategy focuses on stability, decentralisation, and resilience. By distributing tokens to builders, users, and long-term supporters, Core fosters a diverse and decentralised community. The project prioritises robustness over rapid expansion, ensuring the network is strong enough to withstand market volatility.
Sound Monetary Policy Core implements a deflationary mechanism by burning a portion of transaction fees and block rewards, as determined by the DAO, so the token supply approaches but does not exceed the hard cap.
Incentives for Bitcoin Network Participants
- Miners’ Supplemental Income: As Bitcoin block rewards diminish, CORE provides an additional revenue stream for miners who become validators, rewarding them for both Bitcoin and CORE transactions.
- Bitcoin HODLers: Non-custodial Bitcoin staking allows long-term holders to earn rewards without moving their assets from the Bitcoin blockchain, maintaining Bitcoin's high level of security.
Conclusion CORE's tokenomics are designed to support a decentralised and sustainable economy within the Core network. With clear utility, a hard cap on supply, and a long-term reward distribution, Core balances the principles of sound money with the needs of an evolving blockchain ecosystem. This model aims to attract committed participants who will contribute to the network's strength and longevity.
Conclusion
In conclusion, Core DAO represents an innovative approach to integrating Bitcoin with decentralised finance through its Satoshi Plus consensus mechanism, which combines Delegated Proof of Work and Delegated Proof of Stake. This system allows Bitcoin and CORE token holders to participate in network governance and staking without losing custody of their assets. The network aims to enhance security and decentralisation while expanding the utility of Bitcoin within the decentralised finance space.
Since its mainnet launch in January 2023 and the airdrop in February, Core DAO has shown growth in key metrics, including transaction volumes, active addresses, and total value locked. The architecture of the network supports decentralised applications and smart contracts, with full compatibility with the Ethereum Virtual Machine. This compatibility allows developers to migrate Ethereum-based decentralised applications to the Core Chain, potentially broadening its ecosystem. The introduction of coreBTC, a wrapped version of Bitcoin, also enhances Bitcoin’s liquidity for use in financial applications.
The Core DAO ecosystem is primarily driven by lending and restaking services. Colend Protocol and Pell Network account for over 86% of the total value locked, which currently stands at $353.61 million. These services indicate a demand for lending and staking within the network, though other areas, such as decentralised exchanges and liquid staking, represent smaller portions of the ecosystem. These sectors may present opportunities for future development.
The CORE token plays a central role in the network’s governance, staking, and utility functions. With a fixed supply of 2.1 billion tokens and a deflationary burn mechanism, CORE is designed to limit inflation and promote scarcity over time. The token is used for transaction fees, network governance, and staking, which contributes to securing the network.
In summary, Core DAO combines Bitcoin’s security features with decentralised finance applications and aims to broaden the functionality of Bitcoin within decentralised finance. The network’s unique consensus mechanism and integration of smart contracts suggest it has potential for further growth in the decentralised finance space. As Core DAO continues to develop, it may contribute to shaping the future of decentralised finance through its focus on security, scalability, and expanded use cases for digital assets.
Sources:
https://docs.coredao.org/docs/Learn/introduction/what-is-core-chain
https://docs.coredao.org/docs/Learn/introduction/why-core-chain
https://docs.coredao.org/docs/Learn/economics/core-token/tokenomics-and-utility
https://whitepaper.coredao.org/core-white-paper-v1.0.7
whitepaper.coredao.org/core-white-paper-v1.0.7/introduction
whitepaper.coredao.org/core-white-paper-v1.0.7/core-objectives-and-principles
whitepaper.coredao.org/core-white-paper-v1.0.7/background
https://stake.coredao.org/
https://scan.coredao.org/
https://scan.coredao.org/charts
https://scan.coredao.org/topstat/overview
https://x.com/Coredao_Org
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
