Stacks Activates PoX-5 Hard Fork to Launch Bitcoin Staking

Stacks is set to activate its PoX-5 hard fork on July 30, marking a major milestone in the development of Bitcoin staking on the network. The upgrade introduces Proof-of-Transfer and Bitcoin Bonds, which will enable users to lock BTC on the Bitcoin network and pair it with STX on Stacks to earn yield while retaining control of their Bitcoin keys.

The PoX-5 codebase has been audited by Trail of Bits and Clarity Alliance, with additional review from Asymmetric Research. Node operators must upgrade to stacks core version 4.0.1 before block 960,230 to remain connected after the new consensus rules take effect.

Users can restake their STX after the upgrade becomes active to continue earning rewards. The PoX-5 contract will unlock staking from the previous contract as staking moves to the new PoX-5 contract. Users must restake before Bitcoin block 962,050 to receive rewards during the first cycle following the hard fork.

The protocol bond model is designed to generate yield without lending or transferring custody of the underlying Bitcoin. However, Stacks notes that target yields are not guaranteed and remain dependent on miner participation and network conditions.