Michael Saylor Says Bitcoin Doesn't Need Ethereum-Style Staking and Proposes Digital Asset Stack

Strategy Founder Michael Saylor has put forward a new framework for digital assets, identifying Bitcoin as the foundation for a broader financial ecosystem. Characterizing BTC as  “pure digital capital,” Saylor dismissed the idea of Ethereum-like staking.

According to Michael Saylor, Bitcoin’s value is primarily driven by its scarcity and stability. He believes that BTC investors can earn income from Bitcoin through related financial products, without relying on staking.

Michael Saylor’s ‘Digital Asset Stack’ explained

Saylor recently shared an X post outlining a five-layer Digital Asset Stack. This model places Bitcoin as the foundation of a broader financial system, followed by digital credit, money, yield, and equity products.

Source: Michael Saylor via X

Saylor’s model holds the key idea that Bitcoin should remain simple. “Bitcoin does not need staking,” stated Saylor. This means that the cryptocurrency does not need features like staking, inflation, or protocol-based rewards to earn returns. He believes that BTC should remain scarce and unchanged. For returns, investors can depend on the financial products linked to it. His words read,

How can Bitcoin products generate returns?

Adding more credibility to his statement, Strategy’s Michael Saylor highlighted his own company’s investment products. He argued that Bitcoin treasury company Strategy’s BTC-linked investment tools help investors earn returns without staking and other yield mechanisms. According to him, these products provide multiple risk and return opportunities.

The mentioned products include preferred shares and Bitcoin-linked securities. They provide investors with access to BTC as per their investment types. While some investors look for steady income, others may prefer higher growth potential. 

For instance, Saylor’s Digital Asset Stack highlighted the “digital credit” system. In simple terms, it is the concept of Bitcoin as collateral to support financial products to gain different types of returns. 

He referred to STRC preferred shares, which provide exposure to Bitcoin without putting the holder at risk of direct ownership. Here, Bitcoin serves as the foundation of the system, as other investment products are built on top of it.

However, the Strategy founder added that the credit products aren’t completely risk-free. Instead, they offer stable returns, compared to risky equity products that are closely tied to Bitcoin price movements. He noted:

Further, Saylor stressed that the risk can change depending on different factors. These include liquidity, investor demand, and broader market conditions.