Staking

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What is Staking?

Staking on Botanix is the process of locking up your Bitcoin to help secure the network and participate in consensus. Unlike traditional Bitcoin, which doesn't offer native staking, Botanix enables Bitcoin holders to earn rewards by contributing to network security through the Spiderchain's Proof-of-Stake consensus mechanism.

Think of staking as putting your Bitcoin to work—instead of just holding it, your Bitcoin actively helps secure the network while earning you additional Bitcoin rewards.

How Staking Works on Botanix

The Staking Process

  1. Lock Bitcoin: You commit your Bitcoin as stake to participate in network security

  2. Validation Rights: Your stake gives you the right to participate in consensus and validate transactions

  3. Earn Rewards: You receive Bitcoin rewards for honest participation in securing the network

  4. Risk/Reward: Your stake can be slashed (partially or fully lost) for malicious behavior

Bitcoin-Native Staking

Unlike other networks that require you to buy separate tokens:

  • Stake with Bitcoin: Use your actual Bitcoin as collateral

  • Earn Bitcoin: Rewards are paid in Bitcoin, not other tokens

  • Maintain Exposure: Keep your Bitcoin exposure while earning yield

Why Stake on Botanix?

Earn Bitcoin Yield

For the first time, Bitcoin holders can earn native yield on their holdings:

  • Passive Income: Generate Bitcoin rewards without selling your position

  • Compound Growth: Reinvest rewards to increase your stake over time

  • Bitcoin Denominated: No exposure to other tokens or currencies

Support Network Security

Your staked Bitcoin directly contributes to Botanix's security:

  • Consensus Participation: Help validate transactions and create blocks

  • Economic Security: Your stake adds to the total economic security of the network

  • Decentralization: More stakers means a more decentralized and resilient network

Staking Phases

Current Phase: Federated, no Staking

  • Selected Operators: Current Orchestrators are pre-selected for network stability

  • No Staking: Staking is not required yet for selected node operators

Future: Permissionless

  • Open Participation: Anyone can stake Bitcoin and participate in consensus

  • Full Decentralization: Transition to truly permissionless network participation

Key Takeaways

  • Bitcoin-native staking enables yield generation without leaving the Bitcoin ecosystem

  • Network security benefits from increased economic participation

  • Aligned incentives ensure stakers and network interests are aligned

  • Future implementation will transition from federated to permissionless participation

  • Multiple participation options will accommodate different risk profiles and technical capabilities

Staking represents a fundamental evolution in Bitcoin's utility—transforming it from purely a store of value into a productive asset that generates yield while securing the next generation of Bitcoin-based financial applications.

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