Core DAO hands over control, Rines and Sedo step down October 27

He shared his perspective, stating, "The validators, builders, partners, and Coretoshis who power Core are already leading the way. I'm grateful to everyone I've had the chance to build alongside. I'll always be a Coretoshi, and I'm excited to see Core continue growing as a network built to scale Bitcoin and carry its decentralized ideals forward." This shift sees the Bitcoin-focused blockchain moving increasing operational duties to independent community members and validators, as early contributors Rich Rines and Brendon Sedo step down from their roles in the DAO.

Core DAO announced on X on October 27 that this change is part of its continuing decentralization journey, a process that has already seen the network begin shifting block production away from its own internal management. The project is now entering a new phase of decentralization. Since the DAO started handing over the role of block production to independent validators, the network has maintained flawless operation throughout the entire transition period. Decentralization has been the guiding principle of Core since its very first block. The project indicated that community participants will progressively assume responsibility for various aspects, including growth initiatives, ecosystem development, and decisions shaping the network's future. Over the ensuing months, Core anticipates greater involvement from community-led projects and more independent operators.

Rines elaborated that independent validators had already assumed block production duties without causing any interruption to the network, and this same methodology is now being applied to other functions within Core's operations.

Core DAO has not yet named replacements for either contributor, nor has it provided a specific timeline for transferring their remaining duties. Both Rines and Sedo held significant positions within the project, though Core officially designates them as initial contributors rather than founders. Rines previously worked at Coinbase, where he led an engineering group tasked with money movement. He joined Core's development efforts in 2022 and assisted in bringing the mainnet online in January 2023. Sedo, conversely, previously co-founded the business software firm Joist, which was later acquired by EverCommerce. In his capacity as Head of Core Ventures, he oversaw the deployment of $1 million across several Bitcoin DeFi ventures by May 2025, including Colend, Solv Protocol, and BitFLUX.

The blockchain utilized by Core operates on the Satoshi Plus consensus mechanism, which integrates noncustodial Bitcoin staking with Bitcoin mining participation and delegated proof of stake. The network supports smart contracts compatible with Ethereum, while CORE functions as its native token for staking and transaction fees. Previously, Core collaborated with the institutional custody provider Cobo to expand its dual Bitcoin staking services across Asia. This March 2025 partnership was aimed at enabling institutional investors to access Bitcoin staking through Core's DeFi infrastructure.

These leadership changes follow Core's decision to delegate its remaining block production responsibilities to independent validators. In late September, the project published plans detailing the handover of the block production duties still managed by its official node, with this transition slated to continue across the subsequent months. Core confirmed that its network remained operational without any downtime during the handover, though it refrained from specifying the final number of additional independent operators who will participate.

Earlier this year, Core experienced issues related to validator rewards. As crypto.news reported at the time, a small cohort of Core validators received CORE rewards exceeding the limits established by the protocol. This incident necessitated the project coordinating an emergency hard fork, leading to temporary restrictions on CORE transfers by exchanges such as Coinbase, Bithumb, and Coinone. Core stated that the problem related to reward issuance and did not compromise the network's security or user assets. The proposed upgrade was engineered to prevent any further excessive rewards without invalidating transactions already confirmed. Subsequently, the project activated an emergency upgrade in September, which became one of several events involving Core's validator infrastructure throughout 2026.

Not everyone within the Core community has embraced the explanation provided for these leadership departures. In response to the announcement, the community account Corefrontline questioned whether the transition truly signifies genuine decentralization, raising concerns regarding CORE liquidity, token distribution, and accountability. The account posted, "Hey @Coredao_Org Decentralization of block production is one thing. Handing the community a dried-up token while the same group that controlled the partnerships, the Maple litigation (settled with confidential terms and no public benefit to holders), the reward-issuance mess,…" It contended that shifting block production to independent validators does not automatically resolve control over treasury tokens, contributor allocations, or reserves. Corefrontline demanded wallet-level transparency concerning the remaining allocations and questioned whether the departing contributors had sufficiently addressed the concerns voiced by token holders. Furthermore, the account referenced the project's prior conflict with Maple Finance and the validator reward debacle, arguing that unresolved community questions merit attention during this handover period. The dispute with Maple Finance originated in 2025, when Core Foundation accused the lending protocol of violating confidentiality and exclusivity agreements tied to their Bitcoin yield partnership. A Cayman Islands court issued an injunction in November 2025, restricting Maple's planned syrupBTC launch and certain dealings involving CORE tokens. Maple refuted these claims. The two parties ultimately reached a settlement in May 2026, keeping the terms private and without either side admitting fault.

Why it matters

This shift signifies a major move toward decentralization for the Bitcoin-focused blockchain. Readers should watch how the community handles ecosystem development and governance without the original leadership in place. Concerns remain within the community regarding the depth of this decentralization.