Stacks (STX) is the native cryptocurrency of the Stacks blockchain, a decentralized layer-2 scaling solution for Bitcoin launched in 2018. Built by Blockstack PBC (now Hiro Systems), Stacks enables smart contracts, decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized applications (dApps) on Bitcoin’s secure network. Using a Proof-of-Transfer (PoT) consensus mechanism, Stacks leverages Bitcoin’s hash power for security while offering fast transactions and low fees.

Key Features

  • Bitcoin Layer-2: Anchors transactions to Bitcoin, inheriting its security while enabling smart contract functionality via the Clarity language.
  • Proof-of-Transfer (PoT): Miners bid BTC to validate transactions, rewarding STX holders who stake (stack) their tokens with BTC payouts.
  • High Throughput: Processes transactions in ~5 seconds post-Nakamoto upgrade, supporting thousands of TPS.
  • DeFi and NFT Ecosystem: Hosts dApps like Stacking DAO and markets for Bitcoin-based NFTs and tokenized assets.

STX Token

  • Purpose: Powers transaction fees, stacking (staking), governance, and participation in DeFi and NFT markets.
  • Supply: ~1.5B STX in circulation, with a maximum supply of ~1.8B.
  • Contract Address: Native to Stacks blockchain; compatible with wallets like Leather or Xverse for DeFi and stacking CoinGecko CMC.

Who Are the Founders of Stacks?

Stacks was co-founded by Muneeb Ali and Ryan Shea under Blockstack PBC, with Ali leading as CEO. The project raised $52M through a 2017 token sale, the first SEC-regulated offering in crypto. Supported by investors like Tim Draper and Union Square Ventures, Stacks transitioned to a decentralized network with the Nakamoto upgrade in 2024.

What Makes Stacks Unique?

Stacks stands out in the blockchain ecosystem:

  • Bitcoin Integration: Expands Bitcoin’s utility beyond a store of value, enabling DeFi, NFTs, and dApps without altering Bitcoin’s protocol.
  • Clarity Language: Offers a secure, predictable smart contract language, reducing vulnerabilities compared to Solidity.
  • sBTC Asset: Introduces a decentralized, Bitcoin-backed asset for DeFi, with 100% Bitcoin hash-power security.
  • SEC Regulation: First crypto project with an SEC-regulated token offering, enhancing institutional trust.

Stacks Network Upgrades (2025)

  • SIP-031 Emission Schedule (June 2025): Passed with majority support, introducing incentives to boost ecosystem growth and market adoption.
  • sBTC Mainnet Expansion (March 2025): Scaled sBTC for broader DeFi use, enabling tokenized Bitcoin in Stacks dApps.
  • WASM Integration (May 2025): Added WebAssembly support, expanding developer access to Rust-based dApps.
  • Stacking DAO Enhancements (July 2025): Improved staking rewards and governance, increasing BTC payouts for STX stakers.

How Is Stacks Secured?

  • Proof-of-Transfer (PoT): Ties Stacks’ consensus to Bitcoin’s hash power, ensuring unparalleled security.
  • Bitcoin Anchoring: Finalizes transactions on Bitcoin’s blockchain, leveraging its immutability.
  • Clarity Contracts: Minimizes bugs and exploits through predictable smart contract execution.

Conclusion

Stacks (STX) is a transformative layer-2 blockchain unlocking smart contracts and DeFi on Bitcoin’s secure network. With backing from Tim Draper and Union Square Ventures, Stacks’ 2025 upgrades like SIP-031 and sBTC expansion position it as a leader in Bitcoin-based Web3 innovation.