Staking Protocol

Staking Account

• A 2-of-3 multi-signature account.
• Includes the user, Coffer Network, and a third-party as signers.
• Funds can only be withdrawn under contract expiry or slash conditions.

Staking Process

1. Verify Ownership: Sign a message from your Bitcoin address.
2. Sign Off-Chain Contract: Agree to staking terms.
3. Provide Pledge: Deposit 0.1% Bitcoin to the staking account.

Happy Path

• The user adheres to the off-chain contract.
• 0.1% Bitcoin is returned to the user along with staking rewards.
• The user can renew the staking period for continued rewards.

Unhappy Path

• The user breaks the off-chain contract by moving Bitcoin prematurely.
• 0.1% Bitcoin is slashed and sent to the treasury.
• The user’s Bitcoin in their wallet remains unaffected.
• The user can rejoin staking by creating a new contract.