DMND and RootstockLabs announced a partnership integration of Stratum V2 protocol on May 15, 2026, allowing Bitcoin miners to select Rootstock sidechain blocks while maintaining control over block template construction and receiving sBTC rewards directly without intermediaries. The feature targets merge-mining workflows, where miners can simultaneously earn on both Bitcoin and the Rootstock sidechain while retaining custody of rewards.
Merge-Mining Control Returns to Miners
Merge-mining allows multiple blockchains to share proof-of-work from the same miners. Child chains embed parent chain headers into their blocks; when a parent chain block is found, child chain blocks are simultaneously mined. Historically, mining pools have controlled this process and claimed sidechain rewards as pool revenue.
DMND’s Stratum V2 integration inverts that model. Miners using DMND’s pool can now select which Rootstock blocks to include in their templates and claim sBTC rewards directly on the sidechain. Alejandro De La Torre, CEO and Co-Founder of DMND, stated: “The miner controls the merge mining and the miner gets paid for the merge mining. More delegation of control to miners is our key support for further decentralisation of the Bitcoin ecosystem.”
Decentralization Trade-offs in Practice
The announcement explicitly acknowledges a paradox: enabling individual miner control over block selection could theoretically fragment mining power across multiple sidechain instances, potentially reducing network consolidation but also creating new coordination challenges.
Bitcoin Magazine’s coverage notes that real-world adoption will test whether this mechanism actually strengthens or weakens mining decentralization. The technical implementation allows miners to bypass pool custody models entirely, eliminating intermediary revenue-sharing arrangements that have historically characterized sidechain merge-mining.
Rootstock’s Path to Merge-Mined Adoption
Rootstock (RSK) is a Bitcoin sidechain secured by merge-mining. Its native token, sBTC, represents bitcoin locked on the sidechain. The Stratum V2 protocol upgrade enables granular miner agency over block construction—a capability previously unavailable in standardized mining pools.
This partnership positions Rootstock to attract hash power without requiring miners to deposit rewards with a custodial pool operator. Direct on-chain reward settlement removes counterparty risk and aligns miner incentives with sidechain validator participation.
Next Steps: Adoption Metrics Pending
No specific technical specifications, implementation timeline details, or comment from RootstockLabs leadership was provided in the announcement. Miner participation rates and sBTC reward flow data will be critical indicators of whether the integration achieves its stated decentralization goals. Watch for adoption signals from major mining operations in Q3 2026.
