Understanding CoreDAO: The Barbarians at the Gate of the Crypto World
What exactly is CoreDAO, and what aspects of its ecosystem are worth our attention?Author: Ximi Sammi
Recently, a project called CoreDAO launched simultaneously on eight major exchanges including OKEx and Huobi on February 8, creating quite a stir in the crypto space. In the crypto circle, CoreDAO is seen as the barbarian invading "Rome," receiving enthusiastic support from major exchanges, which has surprised many native crypto players. CoreDAO has broken the traditional rules of development and implementation for first-tier projects, showcasing a new way to win. CoreDAO has outperformed its competitors in multiple business metrics, leaving many orthodox blockchain projects far behind. So, what exactly is CoreDAO, and what aspects of its ecosystem should we pay attention to?
1. Introduction to Core DAO
1. Project Overview
Core DAO is an EVM-compatible L1 public chain. Core is an evolution of the Geth codebase, utilizing improvements made by the BSC team, and has increased throughput and reduced transaction fees through a hard fork. CORE is a cryptocurrency designed to avoid inflation, aiming to automatically execute profit strategies through a fully decentralized approach. Core can maintain decentralization without the performance compromises seen in traditional PoW consensus systems.
2. Core Token Economics
Token Information
Following Bitcoin's robust monetary model, the total supply of $CORE is capped at 2.1 billion tokens. Above this hard cap, a certain percentage of all block rewards and transaction fees will be burned, similar to Ethereum's "super robust currency" model. The exact percentage of the burn will be determined by the DAO.
The following image provides current token circulation information from the Core community for reference:
Release Mechanism
CORE's block rewards will be distributed over 81 years. This extended period increases the likelihood of the chain's success by adequately incentivizing all network participants before transitioning to purely transaction fee-based compensation. This additional block reward in the form of CORE can also be seen as a way for existing BTC miners to continue receiving subsidies by becoming validators on the Core network using their existing hashing power after Bitcoin block rewards cease (around 2040).
Token Distribution
Distribution breakdown of the 2.1 billion CORE tokens:
- Node Mining (839,900,000 tokens; 39.95% of total supply):
To launch Core, miners and stakers protecting the network must be compensated for their services. Node rewards will be distributed over a long period (approximately 81 years) to ensure long-term incentive consistency. Nodes can also earn rewards in the form of transaction fees.
- Users (525,600,000 tokens; 25.029%):
From the outset, core users should know that this chain is built for them. Airdropped CORE tokens will be allocated to a decentralized base of millions of users.
- Contributors (existing and future) (315,000,000 tokens; 15%):
Compensation will incentivize past, present, and future core contributors.
- Reserves (210,000,000 tokens; 10%):
This reserve can be used over time to capitalize the foundation without centralizing token supply.
- Treasury (199,500,000 tokens; 9.5%):
The treasury will provide necessary funding to the DAO to establish the ecosystem.
- Relayer Rewards (10,000,000 tokens; 0.476%):
Like nodes, relayers must be compensated for the services they provide for the chain's security. Relayers also receive rewards in the form of transaction fees.
3. Core Community Engagement
Core DAO boasts a broad community base that outshines many projects in the crypto space, with over 1.58 million followers on the official Twitter account, 179,000 members on Discord, and 2.6K online. Numerous self-organized bilingual KOL Twitter accounts have strong dissemination attributes. With the power of the community, CORE will achieve the necessary network effects required to create a successful currency and become a springboard for the broader adoption of Web 3.
2. Overview of Core Project Ecosystem
Several ecosystem projects have already been laid out on Core DAO, including DEX, wallet, and cross-chain bridge projects.
1. LayerZero ------ Cross-Chain Interoperability Protocol
LayerZero is an interoperability protocol that uses a new technology to make it easier for different blockchain networks to connect with each other. LayerZero provides a framework for scalable, secure, and decentralized cross-chain interoperability. By connecting various chains to a single platform and interface, multi-chain applications can conveniently communicate, transfer digital assets, and reach consensus. The integration of Core with LayerZero presents early opportunities for rapid expansion of use cases and development. LayerZero previously announced the completion of a $135 million Series A+ funding round, co-led by FTX Ventures, Sequoia Capital, and a16z, with participation from Coinbase Ventures, PayPal Ventures, Tiger Global, and Uniswap Labs, achieving a post-funding valuation of $1 billion.
2. LFG Swap ------ The First DEX on Core
One of the most important infrastructures for a public chain is a DEX, and the development of LFGSwap has received full support from CoreDAO. LFGSwap was originally the leading DEX on the ETHW chain, achieving an impressive milestone of reaching $10 million in TVL in just one day. Recently, the community announced the deployment of LFGSwap and the native LFG token on Core. LFGSwap will closely collaborate with the Core team on the deployment of core products such as Swap, Farm, Pools, and IFO across technologies, communities, and ecosystems.
LFGSwap is a community-driven organization where innovation is crucial for both the team and the community. LFGSwap does not limit itself to a single solution but intertwines many decentralized markets and tools. LFGSwap is committed to creating a swap that is distinct from others, with true "DAO" attributes, making the user experience enjoyable. LFGSwap will deploy multiple chains onto the Core chain, and the team has made very rapid progress in deploying existing functionalities onto Core. When the Core mainnet is ready for formal deployment, LFGSwap will launch immediately, looking forward to collaborating with all outstanding projects on Core and introducing them to the LFGSwap community.
This migration of LFG Swap is beneficial for Core DAO, LFG Swap, and users alike. LFGSwap brings a large number of native crypto users to CoreDAO, directly completing the cold start of the new chain project, while Core's vast community base will drive traffic to LFGSwap, ultimately benefiting both the Core and LFG communities.
3. Elementwallet ------ The First Wallet on Core
Elementwallet is the first wallet application built for the Core network, serving as the primary interface for accessing the Core network. Element will start with cryptocurrency wallet functionalities, enabling Core participants to send, receive, and stake CORE tokens, along with many other features. Ultimately, as Core and Element develop and expand symbiotically, the Core protocol will be easily accessible through Element.
4. Switchboard ------ Oracle on Core
Switchboard is a permissionless oracle protocol for general data feeds. With the support of the Switchboard oracle network, developers on Core can securely and permissionlessly connect to cross-chain and off-chain data, such as prices, sports, weather, etc. Through the oracle network, developers on Core can securely and permissionlessly connect to cross-chain and off-chain data, such as prices, sports, weather, etc.
3. The Collision of Crypto and Trading Circles
The success of Core seems to provide a new path for first-tier projects, and in the future, there will be more "model projects" for reference, imitation, and replication. This represents a new way of landing in this circle, a new goal to strive for, and a new standard for success.
Cryptocurrency exchanges also seem to want to find new traffic sources through CORE. Due to interests, technology and models no longer seem incompatible; the crypto and trading circles are no longer at odds but rather promote and support each other.
The mutual collision of the crypto and trading circles has forged a new machine for traffic and profit. Before their success, no one can ascertain the rules for a project's success. Great enterprises do not need to delve into original sins; as long as the original intention remains, it naturally becomes the driving force for the industry's advancement.
