Stacks

What is Stacks (STX)?

Stacks (STX) is the layer-1 blockchain solution to bring smart contracts and decentralized apps (dApps) to Bitcoin. The Stacks design allows developers to leverage Bitcoin's security and network without modifying Bitcoin as an asset; rather, Stacks brings Layer 1 smart contracts and new applications to Bitcoin. It operates on a novel consensus mechanism called Proof of Transfer, enabling miners to secure the Stacks network by committing Bitcoin.

What Problem Does Stacks (STX) Solve?

Stacks addresses:

• Smart Contracts on Bitcoin: This entails smart contracts and dApps running over Bitcoin, which extends the functionality of Bitcoin beyond simple transactions.
• DeFi Integration: This integration provides for decentralized finance (DeFi) on Bitcoin, which is now made easily accessible to developers and users.
• Security: Uses the security that Bitcoin has already established but adds new features such as tokenized assets, smart contracts, and NFTs.

Why Does the Crypto Market Need Stacks (STX)?

The crypto market benefits from Stacks by:

• Enhancing Bitcoin's Functionality: Unlock new use-cases for Bitcoin by allowing dApps, smart contracts, and DeFi applications to run on the Bitcoin network.
• Interoperability: Makes Bitcoin and the larger DeFi ecosystem interoperable so that Bitcoin holders can tap into a DeFi environment without having to move their assets onto a different blockchain.
• Security and Decentralization: Introduces smart contract functionality to provide the same security guarantees as Bitcoin.

History of STX

Stacks, originally called Blockstack, rebranded in 2020. It raised over $60 million through its token sale back in 2017; this also marked one of the first times the U.S. SEC approved a token offering. The Stacks 2.0 mainnet, introducing smart contracts and PoX, was launched in January 2021.

Who Founded Stacks (STX)?

Stacks was developed by Muneeb Ali and Ryan Shea, co-founders of Blockstack PBC (now rebranded as Hiro Systems PBC). The project is backed by the Stacks Foundation and a global community of developers and contributors.

What's the Technology Behind Stacks (STX) and How Does It Work?

Stacks uses:

• Proof of Transfer (PoX): A consensus mechanism securing the Stacks blockchain by using Bitcoin. Miners commit Bitcoin in order to participate, and in return, they receive newly minted STX tokens.
• Clarity Smart Contracts: A deterministic programming language that enables smart contracts on Bitcoin without adding complexity to the base layer of Bitcoin.
• Gaia Storage: It is a decentralized storage system for off-chain data, with users retaining control over their assets.

What Determines Stacks (STX) Value?

Factors That Affect STX Pricing:

• Market Sentiment of Bitcoin: Stacks has deep associations with Bitcoin. Hence, the value of STX follows the price behavior of Bitcoin.
• Smart Contract Adoption: The more people that use Stacks for smart contracts and dApps, the more demand there will be for STX.
• DeFi Growth: The demand for STX will see an increment with Stacks integrating with more DeFi platforms.
• Network Upgrades: Any change or upgrade in the protocol can affect investor sentiment and influence the price of the token.

How Many Stacks (STX) Are Currently in Circulation?

There are currently 1,484,699,759 STX tokens in circulation from the maximum supply capped at 1,818,000,000 tokens.

Maximum Supply of Stacks (STX)

The STX token has a maximum supply capped at 1,818,000,000 tokens.

What is the (STX) Utility of Stacks?

STX Tokens are utilized for:

• Transaction Fees: STX is used to pay the fees accumulated from transactions and smart contract execution within the Stacks blockchain.
• Staking: This is done by STX holders when they lock in STX, therefore qualifying to receive Bitcoin rewards using the PoX consensus mechanism.
• Governance: Hold STX tokens to have a say in protocol upgrades and key decisions in the Stacks ecosystem.

Stacks Tokenomics (STX)

Stacks tokenomics include:

• Fixed Supply: STX has a maximum supply of 1.818 billion tokens, with capped mining rewards that decrease over time.
• Proof of Transfer (PoX): Miners can earn STX by committing Bitcoin, thus creating a one-of-a-kind bridge between Bitcoin and the Stacks ecosystem.
• Staking Rewards: Allows STX holders to lock in tokens for participation in PoX and earn Bitcoin rewards.

What are the All-Time High and All-Time Low for Stacks (STX)?

• All-Time High: $3.86 on April 1, 2024
• All-Time Low: $0.0456 on March 13, 2020

Where to Buy Stacks (STX)?

STX tokens are available for purchase on a number of the leading cryptocurrency exchanges:

• Binance
• Coinbase
• Kraken
• KuCoin

Who Bought Stacks (STX) Early?

Stacks has been backed in its early-stage financing rounds by leading VCs, such as Union Square Ventures, Y Combinator, and Winklevoss Capital. The company also raised capital through a regulated ICO in 2017, one of the first to receive SEC qualification in the United States.

What Are The Revenue Streams of Stacks (STX)?

Revenue streams for Stacks include:

• Transaction Fees: Fees that are collected during the transaction process and through smart contract execution on the Stacks Blockchain.
• Staking and Mining Rewards: STX holders can earn Bitcoin by staking their tokens through the PoX mechanism.
• DeFi Integrations: Income from decentralized finance platforms and applications built over Stacks.