Core DAO's Next Chapter: Evolving Into the Bitcoin Power Grid

Core contributor Richrines recently outlined the strategic evolution for Core DAO, positioning the network as an infrastructure layer for Bitcoin DeFi (BTCFi). In a two-part analysis published in December 2025, he describes how Core DAO aims to transition from offering Bitcoin staking tools to supporting a wider ecosystem of yield products, decentralized applications, and institutional integrations.

This shift reflects a broader challenge across BTCFi in that, while user interest in Bitcoin yield has grown, adoption remains uneven and depends heavily on credible infrastructure, verifiable security assumptions, and sustainable revenue models. Core DAO’s new roadmap aims to address these gaps by strengthening the CORE token's utility.

Rines’ Take on Core DAO’s Adoption

Core DAO operates using a consensus mechanism called Satoshi Plus, which combines Bitcoin's proof-of-work with delegated proof-of-stake. This setup allows Bitcoin holders to stake their assets without transferring custody, enabling them to earn yields while contributing to network security. According to Rines, approximately 90% of Bitcoin's mining hash power supports Core DAO's operations, providing a secure base for BTCFi activities.

The network's initial focus was on Bitcoin staking and decentralized finance tools. For context, users can stake Bitcoin directly or use dual staking, which pairs Bitcoin with the CORE token to increase rewards. This approach has attracted Bitcoin holders, exchange-traded products (ETPs), and decentralized autonomous treasuries (DATs) seeking yields. 

Rines compares this phase to the invention of the lightbulb in the history of electricity. Just as the lightbulb demonstrated electricity's potential but did not drive widespread adoption, Core DAO's staking tools have demonstrated Bitcoin's utility for yield but have not yet achieved a large-scale economic impact. 

“Just as with early electricity, Core has not yet achieved the scale required for escape-velocity revenue. It has, however, secured a seat at many of the most important tables in Bitcoin. Like the lightbulb, the CORE token has become associated with harnessing and making tangible the value of Bitcoin’s electrical charge.” Rines wrote

The network has become a recognized asset in Bitcoin circles, held by miners, holders, and DeFi users, but it lacks the ubiquity needed for sustained revenue.

Identifying The Problem: What is the Major Challenge Towards the Path to Scalability?

In 2025, Core DAO faced setbacks that affected its growth. Rines notes a shift toward partnerships that delayed product launches and reduced support for decentralized applications, resulting in slower total value locked (TVL) growth and diminished community momentum. 

Despite these issues, the network implemented foundational upgrades, including the Hermes update, which reduced block finality to two blocks and enabled six-second transaction confirmations. It also saw successes in ETP integrations, including listings on the London Stock Exchange.

These experiences highlighted the need for a broader infrastructure. Rines argues that relying on a single product, like staking, mirrors early electricity's limitations, where innovations, such as the lightbulb, existed, but distribution systems were absent. To move beyond a single-product model, Rines argues that Core DAO must develop interconnected modules that recycle revenue back into the network, a structure intended to reduce dependence on emissions and create more predictable economic alignment.

The Evolution: The Bitcoin Power Grid

Rines describes the network’s next phase as the emergence of a “Bitcoin Power Grid,” a conceptual framework in which Bitcoin functions as the underlying economic input and Core DAO provides standardized distribution rails for builders. In principle, applications that leverage these rails would pay for access using CORE, creating a token-driven economic model.

This design assumes that BTC-backed activity, staking, lending, and structured yield strategies can generate sustainable fees that flow back to stakers and builders. While this closed-loop model can reinforce network usage, its success depends on variables such as market demand for BTCFi products, the competitiveness of yields relative to alternative chains, and the security guarantees of the underlying smart-contract layer. Acknowledging these dependencies strengthens the model's credibility and helps readers understand where execution risk lies.

For example, a Bitcoin asset management protocol (AMP) on Core DAO follows a specific sequence: It accesses staking yields and DeFi rails, layers strategies like basis trades or delta-neutral positions to generate additional revenue, distributes yields to users, retains fees, and reinvests those fees into CORE to enhance yields via dual staking. This process increases assets under management (AUM), fees, and CORE demand. Similar dynamics apply to other protocols, such as BTC-backed stablecoins or payment systems, where CORE is required for operations.

Rines emphasizes that this grid compounds value. Each new product expands functionality for users and revenue for builders, increasing activity in lending markets, decentralized exchanges (DEXs), and other applications. All usage ties back to CORE through fees, buybacks, and staking demands, positioning the token as central to scaling.

Core DAO's 2026 Roadmap: Fueling Revenue and Buybacks for the Bitcoin Power Grid

Core DAO outlined its 2026 roadmap, which centers on directing revenue and buybacks to the CORE token. Core plans to support developers at BTCFi by enabling the creation of revenue-focused products that incorporate CORE buybacks. The plan outlines several modules within the Bitcoin Power Grid that are expected to contribute to CORE's value in 2026.

Expanding Yield to Support Revenue: Drawing in BTC and Enhancing Returns

The roadmap describes 2026 as a period of growth in yield features, aimed at attracting additional Bitcoin, collecting more revenue, and allocating those funds to CORE buybacks. It notes that Bitcoin Staking provides a secure foundation by leveraging Bitcoin's consensus, enabling the use of strategies to increase yield.

By increasing the variety of yield sources, Core seeks to improve its economic model. This approach is said to deliver consistent returns across market conditions, offer users choices in risk and reward, and generate revenue independent of token emissions. It also introduces financing methods known to institutions, preparing for revenue activities focused on CORE buybacks.

Core is reportedly shifting from encouraging all BTC activity on its platform to focusing on yield generation from various sources. This method is intended to increase BTC, raise CORE demand, and reduce reliance on emissions.

Contributors to Core have collaborated with Bitcoin yield specialists to develop infrastructure for a range of yield strategies. Developers in the ecosystem are using this to create products for both individual and institutional users.

The key change in 2026, per the roadmap, is shifting from showing yield potential to generating revenue. The focus is on ensuring that BTC holders' benefits translate into CORE buybacks, supporting the token and its holders as the network grows.

Asset Management Protocols (AMPs)

AMPs are described as a way to combine yield options for CORE and Bitcoin. Users deposit CORE, BTC, or both, and the protocol allocates funds to strategies to generate returns, generating fees that drive CORE buybacks.

The process is outlined as follows:

1. The AMP connects to Core to access staking yields, users, and DeFi elements.
2. It adds strategies, such as basis trading or delta-neutral approaches, to create additional revenue.
3. Yields are distributed to users on Core.
4. A portion of the yield is retained as protocol revenue.
5. A portion of the revenue is reinvested in CORE to improve yield through Dual Staking, gas for BTCFi, or other Bitcoin-related uses.
6. This accumulation supports growth, enabling increased assets under management while maintaining yields through Dual Staking.

This is said to create a cycle where more CORE leads to sustained yields, larger assets, higher fees, and greater CORE demand.

Liquid Staked Tokens (LSTs)

The revenue plan highlights yield products, including LSTs. Yield-bearing liquid BTC is an opportunity at BTCFi, with demand present but constrained by current returns and integration options. With varied yield sources and AMP support, Core is positioned to facilitate LSTs that address these issues. Core DAO is working with partners to introduce LSTs with improved yields and compatibility, leveraging sources such as AMPs and lending.

The model for Core-supported LSTs is described as:

• Users deposit BTC to receive an LST representing the BTC and earnings.
• The BTC is staked on Core for base yield.
• Time-locked BTC supports additional strategies for fees not tied to staking.
• Providers collect a fee.
• Revenue is reinvested in CORE for yield enhancements and buybacks.

These LSTs are expected to flow through lending markets, DEXs, and applications, increasing CORE fees, volumes, and activity, thereby supporting CORE through gas and buybacks.

Additionally, LSTs may serve as the basis for yield-bearing BTC ETFs, structured products, and savings accounts. Existing spot BTC ETFs have gathered significant assets without yields; incorporating yields could redirect capital and generate fees for CORE demand.

Dual Staking Marketplaces

The roadmap addresses a limitation in Dual Staking, where some BTC remains unused because holders prefer staking only BTC.

Marketplaces are proposed to allow BTC stakers to compensate CORE holders for acquiring and staking CORE. BTC is staked, CORE is obtained and staked, and the protocol pairs them for Dual Staking. Yields are shared, benefiting both parties. Positions can use single-asset LSTs for BTC or CORE, maintaining Dual Staking advantages.

BTC-only stakers receive yields better than none, while CORE holders get higher returns supported by BTC stakers. This is intended to resolve participation barriers and increase CORE demand.

SatPay: A Bitcoin-Powered Neobank on Core

SatPay is presented as Core's neobank, designed to convert CORE gas and BTC yields into user applications while building demand and revenue for CORE. Developed with Mobilum, which operates neobank services with notable annual revenue, SatPay is designed to generate ongoing earnings for CORE buybacks, alongside demand from user activity.

The main function involves borrowing stablecoins against yielding BTC or LSTs to fund a debit card, allowing spending while BTC earns. Yields help repay loans over time, supporting efficient borrowing.

SatPay integrates lending, DEXs, and BTCFi tools for managing finances in one place. Incentives and referrals for early users are modeled after Core's Satoshi App, but expanded.

Activities like deposits, LST creation, loans, repayments, and transactions are expected to increase CORE use for staking, gas, and buybacks. SatPay is positioned as an entry point for users, supporting adoption, volume, and revenue for the token.

Network Enhancements: Speed and Dependability Upgrades

Following the Hermes upgrade, which improved speed, the 2026 upgrades aim for sub-second block finality, comparable to high-throughput chains.

These align with neobanking, institutional connections, and BTCFi's expansion. Faster settlements and lower latency are intended to make CORE a suitable gas token for Bitcoin finance, enabling reliable transactions.

Further improvements in 2026 are planned to enhance user experience, reduce builder challenges, and maintain Core's uptime record.

ETFs and ETPs Backed by CORE

Valour's yield-bearing BTC ETP on the London Stock Exchange demonstrates Core's capacity for regulated Bitcoin yields. With expanded yields and LSTs, Core is set to support future BTC ETFs, similar to ETH models using stETH.

ETF issuers face challenges justifying fees on non-yielding BTC. To compete and grow assets, they may lower fees on passive exposure and add yields. Core provides the LST structure and tools for this.

Core contributors are working with ETF providers to develop regulated LST-based products. These could produce higher fees, contributing to CORE buybacks.

As these ETFs emerge, demand for CORE exposure may lead to dedicated ETPs or ETFs for direct investment.

CORE's Role in Digital Asset Treasuries (DATs)

As DATs progress, they need to offer distinct features, support premiums, and show ways to increase BTC per share without dilution. The focus shifts to income, productivity, and yields. Core provides a foundation for this.

BTCS S.A., Europe's largest DAT, has integrated Core, run a validator, and earned yields on its balance sheet, offering a method for BTC growth without dilution.

Core-supported DATs are expected to create a category of companies that optimize Bitcoin holdings as active businesses. BTCS serves as an example, with potential for wider application.

Institutional Bitcoin Solutions from Core DAO

Core DAO's enterprise focus targets banks, custodians, and institutions managing Bitcoin. As demand for yields grows, Core offers systems for staking, collateral, and liquidity, operable on Core, hybrids, or anchored privates.

With spot BTC access becoming common, institutions seek active management. Core provides Bitcoin-specific systems for yields, collateral, liquidity, and execution, validated in production.

Institutions can integrate, customize, or use hybrids linked to Core's security and economy.

Compared to Ethereum modular platforms like OP Stack or Arbitrum Orbit, Core offers a Bitcoin yield stack for custom setups with base-layer support.

This results in tools for institutions to provide yielding accounts, credit products, lending, or liquidity, using Core for operations. Growing BTC holdings position Core as infrastructure, with integrations increasing token activity.

This approach is similar to stablecoin integrations in traditional finance. Core's tools, tested in use, make it relevant for institutional yield management.

Duration-Based Staking and Term Structures

Core introduced Dual Staking, now followed by others. It plans to add duration-based staking and terms to improve the model and CORE value.

Users choose lock periods for CORE, with longer ones offering higher yields. Terms provide maturity options balancing liquidity and return, creating a yield curve for CORE.

This aligns users with the protocol: Longer locks stabilize capital, reduce supply in volatility, and encourage staking. Shorter options suit flexibility needs, with higher rewards for long-term support.

These features are intended to strengthen CORE's economics, with extended locks supporting token value and capital base.

Developments in Privacy, AI, and Real-World Assets

Core is expanding into areas that support staking and yield generation, increasing CORE demand sources.

Privacy infrastructure aligns with Bitcoin principles, supporting applications that prioritize confidentiality. Increased privacy is expected to encourage BTCFi involvement, raising staking and usage.

AI agents are noted for automating strategies and management in BTCFi, creating passive options. As use grows, they rely on CORE for gas and routing, adding demand.

Real-world assets are being developed on Core, including property and Bitcoin finance use cases. This will expand into broader offerings, attracting traditional capital for yield and interaction. RWA integrations with LSTs and markets reinforce CORE's role.

These areas diversify uses, attract new users, and direct activity to CORE infrastructure.

Conclusion

Every part of the 2026 roadmap serves one objective. Bitcoin activity must generate revenue, and that revenue must drive CORE buybacks. The expansion of yield strategies, AMPs, LSTs, Dual Staking Marketplaces, SatPay, ETFs, DAT integrations, enterprise tooling, and new verticals such as privacy, AI, and RWAs all increase BTC usage on Core and expand the number of systems that feed value into the CORE token.

Core is shifting from demonstrating what Bitcoin finance enables to monetizing those flows at every level. The outcome is a platform where builders, users, and institutions succeed, and where the CORE token becomes the central beneficiary of the next phase of BTCFi growth.

Sources

• Richrines Series Part 1 - Evolving into the Bitcoin Power Grid
• Richrines Series Part 2 - Revenue Roadmap Sneakpeak
• CoreDAO X Article - 2026 Revenue Roadmap