Stacks Launches Real BTC-Denominated Yield Through PoX Mechanism

Stacks, a Bitcoin layer, is making waves in the crypto community by introducing real BTC-denominated yield that allows users to earn while keeping their coins under their own control.

This mechanism is called Proof of Transfer (PoX) and has been live since January 2021 with over 99.9% uptime.

Users can participate in three ways: Traditional Stacking, where they lock STX tokens for a reward cycle; Dual Stacking, which pairs sBTC with stacked STX to boost Bitcoin rewards; and Pooled Native Bitcoin Staking, a pooled model that allows users to delegate their STX without running infrastructure themselves.

The yield rates fluctuate with network participation and miner activity, but gross yields have recently sat in the high single digits to low double digits annually.