What is Stacks (STX)?

Deep Dive

1. Purpose & Value Proposition

Stacks unlocks Bitcoin’s $500B+ dormant capital by letting developers build apps that treat Bitcoin as a base layer. This bridges Bitcoin’s security with programmable use cases like DeFi and NFTs. All Stacks transactions are hashed onto Bitcoin, ensuring finality without altering Bitcoin’s core protocol.

2. Technology & Architecture

Stacks uses Proof of Transfer (PoX), where miners spend Bitcoin to validate blocks, tying Stacks’ security to Bitcoin’s hash power. Its Clarity language avoids ambiguity in smart contracts, reducing exploits. The sBTC protocol (decentralized Bitcoin token) lets users move BTC into Stacks for DeFi while maintaining 1:1 redeemability.

3. Tokenomics & Governance

The STX token has three roles:
- Fuel: Pays for transactions and smart contract execution.
- Mining Rewards: Distributed to miners who secure the network.
- Stacking: Users lock STX to participate in consensus and earn Bitcoin rewards (up to 10% APY).

Conclusion

Stacks reimagines Bitcoin as a programmable asset layer, blending its security with modern DeFi tools. As Bitcoin’s role evolves, can Stacks become the standard for Bitcoin-centric innovation?