Core DAO’s early contributors Rich Rines and Brendon Sedo have stepped down from their roles in the DAO as the Bitcoin-focused blockchain transfers more responsibilities to independent validators and community members.
Summary
- Core DAO early contributors Rich Rines and Brendon Sedo have stepped down from their roles.
- Core DAO said independent validators have already taken over block production, while community operators are expected to assume more responsibility for development and network decisions.
- The departures follow an earlier validator reward incident that prompted an emergency hard fork after some validators received more CORE tokens than permitted by the protocol.
In an October 27 announcement on X, Core DAO said the decision was part of its ongoing decentralization process, which has already seen the network begin transferring block production away from its own operations.
The project said community members would gradually take responsibility for ecosystem development, growth initiatives, and decisions concerning the network’s future direction. It expects more independent operators and community-led projects to become involved over the coming months.
Core DAO contributors leave as community takes control
Rines, one of Core’s most recognizable contributors, confirmed his departure in a separate statement on X, describing the decision as another step toward the decentralization principles that have guided the project since its launch.
According to him, independent validators had already taken responsibility for block production without interrupting the network, and the same approach was now being applied to other parts of Core’s operations.
“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,” Rines added.
Core DAO has not announced replacements for either contributor or provided a detailed timetable for transferring their remaining responsibilities.
Both Rines and Sedo have played prominent roles in the project, although Core officially identifies them as initial contributors rather than founders.
Rines previously worked at Coinbase, where he led an engineering team responsible for money movement. He joined Core’s development efforts in 2022 and helped bring its mainnet online in January 2023.
Sedo, meanwhile, previously co-founded business software company Joist, which was later acquired by EverCommerce. He served as Head of Core Ventures, which had deployed $1 million across several Bitcoin DeFi projects by May 2025, including Colend, Solv Protocol, and BitFLUX.
Core’s blockchain uses the Satoshi Plus consensus mechanism, which combines delegated proof of stake with Bitcoin mining participation and noncustodial Bitcoin staking.
The network supports Ethereum-compatible smart contracts, while CORE serves as its native token for transaction fees and staking.
Core has previously worked with institutional custody provider Cobo to expand dual Bitcoin staking services across Asia. The March 2025 partnership focused on helping institutional investors access Bitcoin staking through Core’s DeFi infrastructure.
Core DAO’s validator transition follows earlier incident
The leadership changes follow Core’s decision to transfer its remaining block production responsibilities to independent validators.
In late September, the project outlined plans to hand over the block production duties still managed by its official node, with the transition expected to continue over the following months.
Core said its network had maintained uninterrupted operations during the handover, although it has not specified how many additional independent operators will eventually participate.
Earlier this year, Core ran into problems with validator rewards. As crypto.news previously reported at the time, a small group of Core validators had obtained CORE rewards above the amounts permitted by the protocol.
The incident prompted the project to coordinate an emergency hard fork, while Coinbase, Bithumb, Coinone, and other exchanges temporarily restricted CORE transfers.
Core said the issue concerned reward issuance and had not compromised user assets or the network’s security. Its proposed upgrade was designed to prevent further excess rewards without reversing previously confirmed transactions.
The project subsequently activated an emergency upgrade in September, with the response becoming one of several developments involving Core’s validator infrastructure during 2026.
Community questions CORE allocations and transparency
Not everyone in Core’s community has welcomed the explanation surrounding the leadership departures.
In a response to the announcement, community account Corefrontline questioned whether the transition represented genuine decentralization, citing concerns about CORE liquidity, token distribution, and accountability.
The account argued that transferring block production to independent validators did not necessarily address control over contributor allocations, reserves, and treasury tokens.
It called for wallet-level transparency concerning the remaining allocations and questioned whether the departing contributors had adequately addressed concerns raised by token holders.
Corefrontline further pointed to the project’s previous dispute with Maple Finance and the validator reward incident, arguing that unresolved community questions should receive attention during the handover.
The dispute with Maple Finance dates back to 2025, when Core Foundation accused the lending protocol of breaching confidentiality and exclusivity agreements connected to their Bitcoin yield partnership.
A Cayman Islands court granted an injunction in November 2025 that restricted Maple’s planned syrupBTC launch and certain dealings involving CORE tokens. Maple denied the allegations.
The parties subsequently reached a settlement in May 2026, with the terms remaining confidential and neither side admitting liability.
