Everything you need to know about stacking STX.
You can lock your Stacks (STX) to earn Bitcoin through the proof-of-transfer (PoX) consensus mechanism.
Before you “Stack” make sure to check out the Staking Rewards Asset Profile Page for Stacks to help bet a better understanding of this choice.
Get ready to enjoy up to a 20% APY reward rate annually based off current parameters! Make sure to stay up to date with the BTC and STX prices as this can affect reward rate.
What is PoX?
Proof-of-transfer (PoX) is a new consensus mechanism designed for the Stacks blockchain. It uses the security of the Bitcoin blockchain’s proof-of-work system, by requiring miners to spend BTC in order to win the block reward for a Stacks block.
The winning miner is selected randomly, with their chance of winning the block being proportional to the amount of BTC that they spend.
The following visual demonstrates how the winning miner is selected. The chance of each miner winning the block is proportional to the amount of BTC they have spent, compared to the other miners.
What is STX Stacking?
Stacking is locking your STX temporarily to support the Stacks blockchain’s security and consensus mechanism. As a reward, you earn Bitcoin that miners transfer to you as part of Proof of Transfer mining.
Just like how Bitcoin miners run mining software to support the Bitcoin blockchain and earn BTC, you can support the Stacks blockchain and earn BTC just by buying and locking up STX tokens.
Stack in Pool
If you have less than the minimum STX balance, you are able to stack collectively via services that allow for group stacking (stacking pools). Currently there are numerous pool options available as outlined in the provider section in the Stacks asset profile on Staking Rewards.
For starters, you need to own STX. You can either buy these these from Binance or OKEx.
Next you should make sure to download and become familiar with the Stacks Wallet by Hiro PBC.
Lastly you’ll want to be aware of the lock up period associated with Stacking.
How to Stack STX
First, get the Stacks Wallet by downloading it here Stacks Wallet by Hiro PBC.
You’ll be able to create a new wallet and save the back up phrase, please save this is a secure location.
Once you have a wallet please fund it with some STX.
Next you click “Get Started” on the bottom right Stacking section of the wallet.
You will be given two choices of either stacking in a pool or stacking by yourself.
The wallet will calculate if you have enough STX to Stack by yourself.
Click Stack in a pool.
Enter the Pool address – if you do not know the pool address you want, please visit the Staking Rewards Stacks Asset Profile to research the pool provider options.
Enter the amount and chose your cycle lock up length option.
Confirm and pool – review and check the box – click Confirm and start pooling.
Confirm and initiate pooling by entering your password.
Click initiate pooling and wait for the transaction to confirm on the blockchain.
Congratulations 🎊 🎉 You are now Stacking Stacks (STX) and will soon begin earning BTC rewards.
Stacking STX is extremely easy and the process is smooth enough for the mainstream user to catch on. One of the best parts of Staking STX is that you can actually earn Bitcoin for Stacking, this is a great way to get passive bitcoin income exposure to your portfolio. Some drawbacks are that there a lock-up period that is considered to add additional risk, as the prices of BTC and STX can fluctuate in you look in the short term. The team has designed the staking incentives to benefit both the Stacks and Bitcoin networks. Keep up to date with the Stacks news and developments, follow along in the Staking Rewards Stacks Advanced Calculator page to estimate your staking rewards!