The world of blockchain continues to evolve, and one of the most exciting developments on the Bitcoin network is the emergence of BRC20 tokens. Unlike traditional cryptocurrencies that operate on their own chains, BRC20 tokens are built directly on Bitcoin using the Ordinals protocol, enabling users to issue and transfer fungible tokens via inscriptions. This innovation has opened the door to new financial opportunities — including earning staking rewards directly from your BRC20 holdings.
With platforms like OKX Web3 Wallet now supporting BRC20 staking, users can generate passive income without giving up control of their assets. In this guide, we’ll walk you through everything you need to know about BRC20, how to earn yield, and best practices for maximizing returns — all while keeping your digital assets secure.
Understanding BRC20: The Basics
BRC20 is a token standard inspired by Ethereum’s ERC-20 but implemented on the Bitcoin blockchain through ordinal inscriptions. These inscriptions embed data — such as JSON code defining a token — into individual satoshis (the smallest unit of Bitcoin), effectively turning them into unique digital artifacts.
While early use cases focused on NFT-like collectibles, developers quickly realized that similar techniques could be used to create fungible tokens, leading to the birth of BRC20. Popular examples include $ORDI, $SATS, and $VMPX — each representing different projects or communities built around Bitcoin-native utility.
👉 Discover how to start earning yield with BRC20 tokens today.
How to Earn Staking Rewards with BRC20 Tokens
Thanks to innovations like BRC20-S, an enhanced version of the original standard, users can now participate in decentralized staking pools directly from their self-custody wallets. Here's how it works:
- You retain full ownership: Your BRC20 assets remain in your wallet at all times.
- No third-party custody: There's no need to lock or authorize funds externally.
- Flexible transfers: You can still send your staked tokens, though doing so may reduce accrued rewards.
Note: Each BRC20 token can only be staked in one pool at a time. To switch, you must first redeem your principal before re-investing elsewhere.
Let’s break down the step-by-step process.
Step 1: Set Up Your Wallet
To begin earning yield, install the OKX Web3 browser extension wallet. Once installed:
- Create or import a BTC-compatible wallet.
- Navigate to OKX Web3 Wallet > Earn > BRC20 Staking.
This gives you access to a curated list of available staking opportunities — all powered by community-deployed, decentralized protocols.
👉 Get started with secure BRC20 staking in minutes.
Step 2: Choose a Staking Pool
After connecting your wallet, browse available BRC20 investment products. Use filters or search functionality to find tokens that match your risk tolerance and return goals.
Each pool displays key metrics such as:
- Estimated Annual Percentage Yield (APY)
- Lock-up period (if any)
- Reward token distribution schedule
- Total value locked (TVL)
Important: APY figures are calculated based on market prices from the OKX Ordinals marketplace and may fluctuate due to trading volume or manipulation (e.g., wash trading). Always treat APY as an estimate, not a guaranteed return.
Take time to research the project behind the token. Since BRC20-S allows open deployment by anyone, due diligence is essential.
Step 3: Start Earning Yield
Once you’ve selected a pool:
- Enter the amount of BRC20 tokens you'd like to stake.
- Click “Subscribe” (or “Obtain Token” if you need to acquire them first).
- Confirm the transaction via your wallet extension.
- Adjust network fees if needed to speed up confirmation.
After the transaction is confirmed on-chain, you’ll start earning rewards from the next block onward.
You can monitor your earnings in two places:
- Investment Details Page
- Asset Dashboard > DeFi
To claim rewards, simply click “Claim,” connect your wallet, and confirm the transaction.
✅ Pro Tip: Claiming rewards does not affect your staked principal — only accumulated yield is withdrawn.
Step 4: Redeem Your Principal
If you decide to exit a staking pool — whether because the mining period has ended or you want to reallocate funds — follow these steps:
- Go to the investment detail page.
- Click “Redeem.”
- Enter the amount of principal to withdraw.
- Confirm with your wallet.
Your funds will be released after the transaction is confirmed on-chain.
⚠️ Warning: If you transfer staked tokens during an active staking period, the system will deduct from your most recent deposit first and recalculate accrued rewards accordingly. While possible, this is not recommended if you aim to maximize returns.
Sell Your BRC20 Tokens on the Secondary Market
Beyond staking, another way to monetize your BRC20 holdings is by selling them on the secondary market.
Using OKX Web3 Wallet, you can directly list your tokens for sale:
- Go to Web3 Wallet > Asset Dashboard > Token > Token Details.
- Click “List.”
- Follow the prompts to set price and quantity.
This peer-to-peer trading feature empowers creators and investors alike to capitalize on market demand without intermediaries.
Frequently Asked Questions (FAQ)
Q: Are BRC20 tokens safe to stake?
A: While the underlying technology is secure, risks exist due to the decentralized and open nature of BRC20-S deployments. Always verify smart contract legitimacy and community trust before investing.
Q: Can I stake multiple BRC20 tokens at once?
A: Yes, but each individual token type (e.g., $ORDI) can only be staked in one pool at a time. You must redeem before switching pools.
Q: Do I lose control of my assets when staking?
A: No. Your BRC20 tokens stay in your wallet. There’s no need to transfer them to third parties or grant spending approvals.
Q: Why does transferring staked tokens reduce my rewards?
A: The system uses a last-in-first-out (LIFO) model for deductions. Moving tokens triggers a rebalancing of your active stake, which can lower earning potential.
Q: Is APY fixed or variable?
A: APY is variable and based on real-time trading activity in the Ordinals market. It may change daily depending on supply, demand, and reward emissions.
Q: Can I automate reward claims?
A: Currently, claiming must be done manually per transaction. However, frequent claiming can help compound returns over time.
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Final Thoughts
BRC20 represents a groundbreaking shift in how we think about programmability on Bitcoin. Once considered purely a store of value, Bitcoin is now becoming a platform for innovation — thanks to inscriptions and token standards like BRC20.
By leveraging tools such as OKX Web3 Wallet, users can now earn passive income through decentralized staking — all without sacrificing custody or flexibility. Whether you're a seasoned DeFi user or new to crypto, exploring BRC20 opportunities offers a compelling way to grow your digital asset portfolio.