Stacking, which launched as part of the Stacks 2.0 network in January 2021, is a key part of the novel Proof of Transfer
consensus mechanism that powers Stacks 2.0. Stacking itself is the act of temporarily locking up STX to support the Stacks blockchain's security and consensus. As a reward, those engaged in Stacking earn the bitcoin that miners transfer to the protocol to mine new STX.
Over the past 2 months, Stacking has paid out more than $5.5M
in BTC as Stacking rewards. There’s been clear demand for Stacking from the broader market, driving new user adoption for Stacking providers like OKCoin, the creation of new pooling and delegation options like Staked and Friedger’s Pool, and an increase in the amount Stacked in each successive cycle. In just a few cycles, Stacking would already be ranked among the Top 20 DeFi protocols indexed at defipulse.com with over $320M locked up.
Now, with more data available we wanted to share two key reminders about how Stacking works along with best practices for Stackers, particularly those Stacking on their own, at or near the minimum threshold.