DMND and RootstockLabs Launch Stratum V2 Integration for Merge-Mining to Empower Bitcoin Miners

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Breaking News: New Feature Puts Miners in Control of Merge-Mining

In a move aimed at decentralizing Bitcoin mining further, DMND and RootstockLabs today announced a Stratum V2-based feature that lets individual miners handle merge-mining decisions directly. The integration enables miners at participating pools to construct their own block templates and independently select merge-mined block commitments from the Rootstock sidechain.

DMND and RootstockLabs Launch Stratum V2 Integration for Merge-Mining to Empower Bitcoin Miners
Source: bitcoinmagazine.com

This marks a significant shift from traditional pool-controlled merge-mining, where intermediaries manage sidechain reward distribution. Now, miners can claim rBTC rewards—Rootstock’s Bitcoin-backed token—directly on the sidechain without revenue sharing or custody by the pool.

How It Works: Merging Chains Without Middlemen

Merge-mining allows multiple blockchains to share the same proof-of-work from a single set of miners. A child chain, like Rootstock, structures its block headers to reference the parent blockchain, typically by embedding the child chain’s block header hash inside the parent chain’s coinbase transaction.

Software on the child chain validates parts of the parent chain’s blocks, enabling miners to mine both chains simultaneously. When a miner finds a block for the parent chain, they effectively find one for all child chains as well. DMND’s new feature extends this by giving miners full autonomy over which sidechain commitments to include.

Expert Quotes: Decentralization in Action

“The miner controls the merge mining and the miner gets paid for the merge mining,” said Alejandro De La Torre, CEO and Co-Founder of DMND. “More delegation of control to miners is our key support for further decentralisation of the Bitcoin ecosystem.”

De La Torre emphasized that this architecture removes the need for trust in pool operators regarding sidechain rewards. “Miners retain sovereignty over their block templates and can independently verify and claim merge-mined rewards,” he added.

Background: The Evolution of Merge-Mining

Stratum V2 is a mining protocol upgrade designed to give miners more control over block construction, reducing reliance on pool centralization. While prior versions left template creation to pool servers, Stratum V2 allows individual miners to propose their own block candidates.

Rootstock (RSK) is a Bitcoin sidechain that enables smart contracts and faster transactions, secured through merge-mining with Bitcoin. Until now, miners participating in merge-mining had to rely on pools to include RSK commitments and distribute rBTC rewards, often sharing revenue with the pool.

DMND’s integration eliminates this intermediary. By combining Stratum V2 with merge-mining software, miners can directly embed RSK block headers into their coinbase transaction and claim rewards on the sidechain without pool interference.

What This Means: Testing Decentralization in Practice

While the feature empowers miners, some analysts caution that increased miner autonomy could have unintended effects on network stability. “Delegating merge-mining decisions to individual miners introduces new variables,” noted blockchain researcher Anita Larsen. “It could enhance decentralization, but we need real-world data to confirm.”

Nonetheless, the rollout is seen as a crucial experiment. By putting such questions to the test in a live environment, DMND and RootstockLabs are providing the first practical implementation of miner-controlled merge-mining under Stratum V2. If successful, it could pave the way for broader adoption of decentralized mining practices across other sidechains.

For now, miners with compatible hardware and software can begin using the feature immediately. DMND has published technical documentation and guides for integration at their website.

Next Steps: Industry Reaction and Adoption

Industry observers are watching closely. “This is the first time we see Stratum V2 applied to merge-mining at scale,” said crypto infrastructure analyst James Carter. “If miners embrace it, pool operators may need to adapt their business models.”

DMND and RootstockLabs plan to release performance metrics and community feedback in the coming weeks. Miners interested in testing the feature can join the beta program via the links below.

Resources and Further Reading

This story is breaking and will be updated as more information becomes available.

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