Core Project and Token Mechanics
In the module 2, we'll cover the multifaceted role of CORE, the primary utility and governance token of the Core network. This will include its use in transaction fees, staking mechanisms, and governance participation. We'll also explore the sound supply model of CORE, highlighting its hard cap and the deflationary aspect introduced by token burning. Additionally, we'll look into the emission strategy of CORE tokens and how it aims to sustain long-term engagement and security. The phased governance model of Core DAO will also be detailed, examining how it transitions from off-chain to fully on-chain governance to enhance decentralization and community control.
CORE Token
CORE serves as the primary utility and governance token of the Core network. Its primary functions include:
Transaction Fees: Users can pay transaction or gas fees using CORE tokens, facilitating network operations.
Staking: CORE tokens can be staked on the Core network, contributing to network security and operations while earning rewards for the stakeholders.
Governance: Token holders participate in on-chain governance of the Core network, influencing decisions such as network upgrades and parameter settings.
Sound Supply Model
Inspired by Bitcoin, CORE has a hard cap of 2.1 billion tokens. Similar to Ethereum’s model post EIP-1559, a percentage of all block rewards and transaction fees is burned, reducing the total supply over time. This burn mechanism aims to create a deflationary pressure on the token supply, enhancing its potential value. The exact percentage of tokens to be burned is determined by the Core DAO through governance processes.
CORE Emissions
CORE tokens are distributed as block rewards over an extended period of 81 years, mirroring the incentivization strategy used by Bitcoin but extending far beyond Bitcoin’s expected end of mining rewards circa 2140. This strategy is designed to sustain miner engagement and network security by providing ongoing incentives, especially important as Bitcoin’s block rewards diminish and eventually cease.
Decentralization and Governance
Source: Website
The governance of the Core network is overseen by the Core DAO, which is responsible for critical decisions including the adjustment of governance parameters and the validator roster. The governance process is planned to evolve through three key phases:
- Off-Chain Governance: Currently, decisions are made through a majority vote among DAO voters, primarily off-chain.
- Limited On-Chain Governance: This phase will introduce on-chain voting for a predefined set of parameters. The ability to modify these parameters or introduce new ones remains under the DAO’s control, managed through Core Improvement Proposals (CIPs).
Full On-Chain Governance
In the final phase, governance will be fully decentralized and driven by the community, allowing CORE token holders comprehensive control over network policies and directions. This phased approach towards decentralization aims to minimize risks and provide a stable transition as the network scales and matures, ensuring a secure and democratic governance structure.
Source: Website
Core DAO Foundation
The Core DAO Foundation leverages Bitcoin’s security for decentralized applications (Dapps) using EVM-compatible smart contracts. The organization emerged from a community-oriented initiative blending principles of Bitcoin and Ethereum. Core DAO emphasizes collaboration and blockchain adoption without a winner-takes-all approach. They offer Builder Grants to support innovative projects, highlighting their commitment to fostering a decentralized economy and engaging a broad community. The network showcases robust engagement with millions of transactions, a large social following, and a significant number of validators and hash rate contributions.
Core Project and Token Mechanics
In the module 2, we'll cover the multifaceted role of CORE, the primary utility and governance token of the Core network. This will include its use in transaction fees, staking mechanisms, and governance participation. We'll also explore the sound supply model of CORE, highlighting its hard cap and the deflationary aspect introduced by token burning. Additionally, we'll look into the emission strategy of CORE tokens and how it aims to sustain long-term engagement and security. The phased governance model of Core DAO will also be detailed, examining how it transitions from off-chain to fully on-chain governance to enhance decentralization and community control.
CORE Token
CORE serves as the primary utility and governance token of the Core network. Its primary functions include:
Transaction Fees: Users can pay transaction or gas fees using CORE tokens, facilitating network operations.
Staking: CORE tokens can be staked on the Core network, contributing to network security and operations while earning rewards for the stakeholders.
Governance: Token holders participate in on-chain governance of the Core network, influencing decisions such as network upgrades and parameter settings.
Sound Supply Model
Inspired by Bitcoin, CORE has a hard cap of 2.1 billion tokens. Similar to Ethereum’s model post EIP-1559, a percentage of all block rewards and transaction fees is burned, reducing the total supply over time. This burn mechanism aims to create a deflationary pressure on the token supply, enhancing its potential value. The exact percentage of tokens to be burned is determined by the Core DAO through governance processes.
CORE Emissions
CORE tokens are distributed as block rewards over an extended period of 81 years, mirroring the incentivization strategy used by Bitcoin but extending far beyond Bitcoin’s expected end of mining rewards circa 2140. This strategy is designed to sustain miner engagement and network security by providing ongoing incentives, especially important as Bitcoin’s block rewards diminish and eventually cease.
Decentralization and Governance
Source: Website
The governance of the Core network is overseen by the Core DAO, which is responsible for critical decisions including the adjustment of governance parameters and the validator roster. The governance process is planned to evolve through three key phases:
- Off-Chain Governance: Currently, decisions are made through a majority vote among DAO voters, primarily off-chain.
- Limited On-Chain Governance: This phase will introduce on-chain voting for a predefined set of parameters. The ability to modify these parameters or introduce new ones remains under the DAO’s control, managed through Core Improvement Proposals (CIPs).
Full On-Chain Governance
In the final phase, governance will be fully decentralized and driven by the community, allowing CORE token holders comprehensive control over network policies and directions. This phased approach towards decentralization aims to minimize risks and provide a stable transition as the network scales and matures, ensuring a secure and democratic governance structure.
Source: Website
Core DAO Foundation
The Core DAO Foundation leverages Bitcoin’s security for decentralized applications (Dapps) using EVM-compatible smart contracts. The organization emerged from a community-oriented initiative blending principles of Bitcoin and Ethereum. Core DAO emphasizes collaboration and blockchain adoption without a winner-takes-all approach. They offer Builder Grants to support innovative projects, highlighting their commitment to fostering a decentralized economy and engaging a broad community. The network showcases robust engagement with millions of transactions, a large social following, and a significant number of validators and hash rate contributions.