How Stacking Works
Stacking allows you to temporarily lock STX (the native cryptocurrency of Stacks) to support network security and consensus. In return, you earn Bitcoin rewards through Proof of Transfer (PoX), the unique consensus mechanism of the Stacks blockchain.
Current average rewards (last full cycle):
- 857.13 BTC distributed
- 15.93% average APY
Benefits of Stacking
1. Bitcoin Earnings
Stackers earn bitcoin transferred by miners as part of the PoX consensus process, leveraging Bitcoin's $1T+ economic power.
2. Flexible Participation
Choose from multiple Stacking methods that suit your technical experience and STX holdings, with options ranging from simple exchange-based solutions to advanced self-stacking.
3. Network Support
As a Stacker, you actively participate in block validation and signing, contributing to the Stacks protocol's security alongside Signers.
Stacking Methods Comparison
| Method | Minimum STX | Technical Level | Custody |
|---|---|---|---|
| Pool Stacking | Flexible | Beginner | Non-custodial |
| Exchange Stacking | Low | Newbie | Custodial |
| Liquid Stacking | Flexible | Intermediate | Mixed |
| Institutional | High | Advanced | Custodial |
| Independent Stacking | 100,000+ | Expert | Self-custody |
๐ Explore Stacking providers for current options and reward rates.
Detailed Stacking Options
Pool Stacking
- Ideal for smaller STX holders
- Providers combine your tokens with others
- Rewards distributed at cycle end
- Available via platforms like Leather Earn
Exchange-Based Stacking
- Simplest option for beginners
- Custodial service handles all technical aspects
- Lower minimum requirements
Liquid Stacking
- Earn rewards while using STX in DeFi
- Maintain liquidity for other investments
- Higher yield potential through ecosystem utilization
Institutional Solutions
- Custom custody arrangements
- Enterprise-grade security
- Tax-optimized structures
Independent Stacking
- Requires significant STX holdings
- Full control over participation
- Direct interaction with protocol
FAQ Section
Q: How often are Stacking rewards paid out?
A: Rewards are distributed at the end of each Stacking cycle (typically 2-4 weeks).
Q: Can I unstake my STX whenever I want?
A: STX remains locked for the full Stacking period you commit to - early unstaking isn't possible.
Q: What's the minimum STX required to participate?
A: Minimums vary by method, starting from small amounts in pools up to 100,000+ STX for independent stacking.
Q: How are Stacking rewards calculated?
A: Rewards depend on total STX locked, Bitcoin miner contributions, and your share of the Stacking pool.
Q: Is Stacking safe?
A: The protocol itself is secure, but always use ๐ trusted providers and practice proper key management.
Q: Can I compound my Stacking rewards?
A: Yes, many providers offer automatic compounding options for optimal earnings.