How Bitcoin Staking Works
BTC Karma is designed to let users participate in Bitcoin-native reward infrastructure without using traditional bridge infrastructure.
The goal is to create a staking and reward experience that feels natural for Bitcoin holders while using Cardano infrastructure for reward accounting, token distribution, and future yield access.
Basic Flow
- The user verifies Bitcoin wallet ownership.
- The user signs a Bitcoin message.
- The user creates a BTC staking position.
- BTC Karma tracks the staking account.
- The user verifies a Cardano reward destination.
- Rewards may accrue based on staking activity, active emissions, and protocol rules.
- The user may claim KARMA when rewards become available.
Bridgeless Design
BTC Karma is designed around a bridgeless Bitcoin experience.
The goal is not to force Bitcoin holders to move through traditional wrapped-asset bridge flows.
Instead, BTC Karma focuses on wallet verification, staking account tracking, and reward distribution through a verified account system.
Account-Level Reward Tracking
BTC Karma is designed to consolidate user staking activity into a clean account-level reward system.
This avoids fragmented UTXO-level reward accounting and creates a simpler experience for users, larger holders, institutions, custodians, and Bitcoin-focused capital allocators.
Bitcoin UTXO and Cardano eUTXO
BTC Karma is built around the relationship between Bitcoin's UTXO model and Cardano's eUTXO model.
At a high level, the system is designed to let Bitcoin staking activity be verified and represented through Cardano-based reward and accounting infrastructure.
This allows BTC Karma to use Cardano infrastructure while preserving a Bitcoin-first user experience.
Long-Term Goal
The long-term goal is for Bitcoin holders to access future Bitcoin yield opportunities without needing to understand every part of the underlying infrastructure.
BTC Karma should feel simple for Bitcoin users while using the infrastructure needed for rewards, levels, and future access.