Stacks Activates PoX-5 Hard Fork, Enabling Bitcoin Staking
Stacks is set to activate its PoX-5 hard fork on July 30 at approximately 2 a.m. Eastern Time, introducing the consensus infrastructure needed for Bitcoin staking on the network.
The upgrade introduces Bitcoin Bonds, which allow users to lock BTC on the Bitcoin network and pair it with STX on Stacks to earn BTC-denominated yield while retaining control of their Bitcoin keys.
PoX-5 upgrades Proof of Transfer, the Stacks consensus mechanism under which miners commit BTC to compete for the right to produce Stacks blocks and receive STX rewards.
The upgrade also removes the previous cooldown cycle, allowing stakers to change their reward address without missing a full cycle. Additionally, it simplifies pool participation and reduces the risk of users missing rewards due to failed pool commitments.