Stake Stacks (STX)

Stacks (STX) is a layer-1 solution that enables the deployment of smart contracts and decentralized applications on top of Bitcoin. Holders of STX can earn rewards in bitcoin when they lock their tokens to secure the protocol.

What is Stacks (STX)?

Stacks was launched in 2013 by Blockstack PBC, now called Hiro PBC. The founders of Blockstack are computer scientist Muneeb Ali and engineer Ryan Shea. The company rebranded from Blockstacks to simply “Stacks” in 2020.

To pair with the Stacks blockchain solution, Blockstack PBC developed a new smart contract programming language called Clarity. Clarity is designed to be as secure as other languages, with the advantage of having an unambiguous syntax making it easy to build with.

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Stake Stacks (STX)

Stacks uses a novel proof-of-transfer (PoX) consensus mechanism. What this means is miners on Stacks must stake Bitcoin (BTC) in order to unlock and mint new STX, the native cryptocurrency of Stacks.

In other words, miners earn STX by forwarding Bitcoin into a reward pool. This pool of funds is then programmatically distributed to qualified “Stackholders” who are ‘Stacking’ — what other blockchains call staking.

Registering assets to Stacks, using the Stacks protocol as well as earning bitcoin from Stacks’ reward cycles all require holding and using STX.

Stacks is the only smart contracts platform running on top of Bitcoin. This enables developers to build decentralized applications on arguably the world’s most valuable and secure peer-to-peer network today. Any changes made to Stacks IDs or wallet balances can be verified using the Bitcoin blockchain.

What are the benefits of stacking STX?

Staking is the process of locking tokens on a protocol to secure it, and earn more tokens in return. In order to stake, it’s necessary to lock funds in a crypto-wallet compatible with the blockchain network you wish to stake with. In turn, you will receive crypto rewards based on the amount and time your cryptocurrency is locked-in for.

Earning bitcoin

There are a few key benefits to stacking (i.e. staking) STX on the Stacks protocol. The first is that you can earn bitcoin rewards paid every day. The minimum amount is set by the miners of the network and varies each reward cycle.

Securing the network

Stacking STX helps secure the network via Stacks’ proof-of-transfer consensus mechanism. Staking tokens or coins is a communal contribution that helps incentivize node operators, which are the network actors that make

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What are the risks of stacking STX?

The only risk to staking your STX is tied to the earnings following completion of the rewards cycle. Yield farmers are after one thing: Strong yield on their investment. If the network can’t accrue demand then earnings from your stacked STX will be under-performing.

In addition, once your STX is ‘stacked’, there is a lock-in period. This means use of your staked STX is restricted during this time.

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How to stack STX on Okcoin?

You can stake STX to earn bitcoin rewards in a few clicks on Okcoin. All you need is an Okcoin account, which takes a few minutes to set up. Then deposit STX and start earning BTC.

Stake Stacks (STX)
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