Stacks Protocol Info
Explore in-depth insights about Stacks.
About Stacks
Stacks is Bitcoin L2 that allows smart contracts and decentralized applications (dApps) to use Bitcoin as a secure base layer. It supports decentralized finance applications like tokenized assets and decentralized exchanges.
The Stacks Token
STX is the cryptocurrency and native token of the Stacks network. The STX used as gas in L2 received its first SEC-certified sale in the United States.
Proof-of-Transfer (PoX)
The Stack uses a consensus mechanism called Proof of Transfer (PoX).
PoX is an extension of the Proof-of-Burn mechanism, where miners secure a new blockchain by transferring the Proof-of-Work cryptocurrency of an established blockchain. Unlike Proof of Burn, where cryptocurrencies are destroyed, miners in PoX transfer the committed cryptocurrency to other participants in the network.
In Stacks' case, Bitcoin serves as the anchor chain, and PoX participants secure their blockchain and earn rewards in Bitcoin. This approach ensures that Stacks is anchored on Bitcoin's established Proof-of-Work chain.
About Stacking
Stacks introduces the concept of "Stacking," where you can lock up their tokens to participate in the Stacks network's security and generate Bitcoin rewards in return.
Below are the key points of Stacking:
| Parameters | Stacks |
|---|---|
| Minimum Staking Amount | The minimum STX for Stacking is dynamic. You can go to lockstacks.com, which shows the current minimum STX. Currently, the minimum is 100,000 STX. |
| Reward Cycle | The total length of the cycle is 2100 BTC blocks. Each block is generated approximately every 10 minutes, with an average cycle duration of 14 days. The preparation phase is 100 blocks. |
| Unbonding Time | It is up to 15 days, depending on when the STX is stacked in the 15-day Stacks cycle. |
| Slashing Risk | There is no slashing mechanism for Stacks. |
| Staking Rewards Distribution | Stacking rewards are paid in BTC, not STX. The original STX tokens will be unlocked to participate without any deduction at the end of the cycle. |
| Staking Rewards Compound | You don’t compound earnings through STX. You only receive the original STX you locked up. |
| Inflation Rate | - |
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Updated about 1 month ago