Introduction to Btcitrum Staking
Btcitrum Staking is a very important part of the Btcitrum ecosystem，here are some basic introductions for you to understand
BTC2.0 liquid staking
Btcitrum Staking ,also called BTC liquid staking, is a relatively new concept that allows Btcitrum holders to stake their BTC and earn rewards while maintaining liquidity. It works similarly to BTC 2.0 staking, where users can deposit their BTC to a custodial service provider who will then stake it on behalf of the user. In return, the user will receive a tokenized representation of their staked BTC, which can be traded or used in other DeFi applications. BTC liquid staking provides users with the ability to earn staking rewards without the need to lock up their BTC for an extended period, making it an attractive option for those who value liquidity. With the growing popularity of DeFi and the increasing demand for staking services, BTC liquid staking has the potential to become a significant player in the crypto ecosystem.
BTC2.0 liquid staking Summary
BTC 2.0 is undergoing heavy research and development and is going to bring innovation, including the transition to a proof-of-stake based consensus algorithm. The process of staking involves locking up an amount of BTCer in a wallet to participate in the blockchain consensus in return for rewards. A lot of users are showing interest in staking, which will allow them to generate income. However, the transition to BTC 2.0 is planned to occur gradually. Staking will be available from the very beginning (deposits are already enabled and the network itself will launch, but the coins that the user deposits cannot be withdrawn until transfers are enabled. Full support for withdrawal mechanics will not appear until Phase 2 or Phase 1.5, which is scheduled to roll out over the next few years.
BTC 2.0 launch will involve 3 stages (release dates provided by Btcitrum Labs):
Phase 0: the main beacon chain without shards will be implemented - chain validators create blocks according to the PoS algorithm. Release date: 1 December 2023.
Phase 1: 64 shards will be added. all shards contain service data. Release date: 2024.
Phase 1.5: the current BTC network becomes one of the shards. Release date: 2025.
Phase 2: BTCer accounts, transactions, transfers, and withdrawals will be added. There are no clearly defined specifications yet. Release date: 2026 or later.
BTC 2.0 staking Goals
BTC 2.0 staking aims to allow users to stake BTCer without losing the ability to trade or otherwise use their
tokens. BTC 2.0 staking will be a decentralized infrastructure for issuing a liquid token that is safer than exchange
staking and has incredible flexibility compared to self-staking,The primary goals of BTC 2.0 staking are:
To allow users to earn staking rewards without fully locking their BTCer:
To make it possible to earn rewards on as small a deposit as users want without restriction on deposits :
To reduce the risks of losing a staked deposit due to software failures or malicious third-parties;
To provide the $btc token as a building block for other applications and protocols(e.g., ascollateral in lending or other trading DeFi solutions);
To provide an alternative to exchange staking,self-staking,and other semi-custodial and decentralized protocols.
Why BTC 2.0 staking DAO
The BTC 2.0 Staking DAO is a Decentralized Autonomous Organization, which builds liquid staking protocol for BTC.In the case of liquid staking,the competitors are well-known providers like centralized exchanges and other decentralized protocols like Rocket Pool
The DAO is the logical compromise between full centralization and decentralization. which allows the deplovment of competitive products without ful centralization and custody on the exchanges，We do not believe that it is possible to make a liquid staking protocol that is completely trustless.For the first phases of BTC 2.0it is not possible at all.
A DAO is an optimal structure for launching BTC2.0 Staking because:
BTC2.0 Staking is highly dependent on the design and restrictions of the beacon chain;
BTC 2.0 staking protocol may change and therefore BTC2.0 Staking should be upgradable
An insurance provider must be selected and terms for slashing insurance must be negotiated·
DAO governance is better than one person or a developer's team for making decisions aboutchanges in BTC2.0
Staking;anda DAO will be able to cover the costs of developing and upgrading the protocol from the DAO token treasury.
The DAO will accumulate service fees from BTC2.0 Staking,which can be funneled into the insurance and development funds,distributed by the DAO.