Stacks (formerly Blockstack) is a decentralized platform that enables smart contracts and decentralized applications (DApps) to run on Bitcoin, extending Bitcoin's functionality without altering its core features. By leveraging Bitcoin's security and stability, Stacks allows developers to build on the world’s most secure blockchain. The platform uses the Clarity smart contract language, known for its predictability and security, distinguishing itself from other contract languages by ensuring developers know the exact behavior of their contracts before execution.
Originally developed by Blockstack PBC and co-founded by Muneeb Ali and Ryan Shea, the project was born from academic research and evolved into a broader ecosystem. Key milestones include the launch of the Blockstack browser in 2017, which provided early access to DApps, and a regulated token offering under SEC Regulation A+ in 2019, making Blockstack one of the first blockchain projects to conduct such an offering.
In 2021, Stacks 2.0 introduced major advancements like Proof-of-Transfer (PoX), connecting Stacks’ consensus directly to Bitcoin while enabling smart contracts via Clarity.
By 2024, Stacks had implemented the Nakamoto upgrade, a significant advancement aimed at improving transaction speeds and finality guarantees. This upgrade also introduced sBTC, a trustless, Bitcoin-backed asset, unlocking new opportunities for decentralized finance (DeFi) applications built on Bitcoin. The Nakamoto upgrade has further cemented Stacks' role as a leading Layer 2 solution for Bitcoin, enabling smart contract functionality and transforming BTC into a fully programmable asset.
Above are only for introduction, not intended as investment advice.
Explore the tokenomics of Stacks (STX) and review the project details below.
What is the allocation for Stacks (STX)?
Stacks issued 1.32 billion STX in the genesis block. STX was distributed through several offerings in 2017 and 2019. 2017 issued STX at $0.12, 2019 issued Reg S at $0.25, and 2019 issued SEC compliance at $0.30.
The initial distribution of STX is as follows:
- 14.2% is allocated to Hiro PBC
- 7.4% is allocated to Stacks Foundation
- 4.1% is allocated to Independent entity
- 6.6% is allocated to Liberated Software LLC
- 3.8% is allocated to Colleges and universities
- 6.6% is allocated to Muneeb Ali
- 7.9% is allocated to Team
- 8.0% is allocated to Equity investor
- 29.2% is allocated to Token sales in 2017
- 8.9% is allocated to Token sales in 2019
- 2.4% is allocated to Blockchain.com
In addition, miners bid for their BTC through Proof-of-Transfer (PoX) for the chance to write blocks on the Stacks blockchain, thereby earning STX rewards and collecting transaction fees.
What is the supply schedule for Stacks (STX)?
1)The maximum supply of STX is capped at 1,818,000,000 with the declining mining reward over time.
The reward amounts are:
- 1000 STX per block are released in the first 4 years of mining
- 500 STX per block are released during the following 4 years
- 250 STX per block are released during the following 4 years
- 125 STX per block are released from then on indefinitely
2)The Stacks cryptocurrency has a predetermined future supply that will reach about 1.818 billion by 2050 (a reduction from the previous 2.04 billion. By the end of January 2021, 1.006 billion STX of the approximately 1.32 billion STX in the genesis block will be liquid, and the rest will be unlocked on a monthly basis according to various unlocking schemes.
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Stacks (STX) is a unique cryptocurrency and blockchain platform designed to extend the capabilities of Bitcoin, the most renowned and valuable decentralized digital asset. Here's a breakdown of what Stacks is and its main features:
1. Bitcoin Layer for Smart Contracts: Stacks operates as a layer on top of the Bitcoin blockchain. This layer introduces the functionality of smart contracts and decentralized applications (dApps) to Bitcoin. Essentially, it allows these applications to utilize Bitcoin as an asset and settle their transactions on the Bitcoin blockchain
2. Native Cryptocurrency - STX: STX is the native cryptocurrency of the Stacks network. It plays a crucial role in maintaining the network's security and consensus mechanisms. Users can hold and temporarily lock their STX tokens to support these functions. This process, known as "stacking," is a way to earn Bitcoin rewards, integrating the Stacks ecosystem closely with Bitcoin's value and security model
3. Consensus and Economy Role: The STX token is central to the Stacks network's consensus mechanism and overall economic structure. It's an integral part of how the network operates and maintains its security. This design choice reflects a trend in newer blockchain networks, which often balance innovative features like smart contracts with the foundational principles of decentralization and security seen in older blockchain systems like Bitcoin
In summary, Stacks represents a significant development in the world of cryptocurrencies by bringing smart contract functionality to Bitcoin. Its native token, STX, not only serves as a currency within its ecosystem but also underpins the network's security and consensus, linking the Stacks platform closely with the broader Bitcoin network. This combination of new technology with the proven stability and security of Bitcoin makes Stacks a notable player in the crypto space.
Stacks (STX) belongs to the Bitcoin Layer 2 sector in the blockchain field. This sector, and Stacks as a part of it, plays a crucial role in addressing the limitations of the Bitcoin blockchain, particularly in terms of scalability and efficiency.
1. Role and Function in the Blockchain Sector: Stacks is classified as a smart contract blockchain that utilizes Bitcoin miners and BTC in a "proof of transfer" blockchain model. It represents an innovative approach to leveraging Bitcoin's security and integrity while introducing smart contract functionality and improving scalability. This "Layer 2" protocol operates in tandem with Bitcoin, enhancing its efficiency and enabling more complex applications, such as dApps, on Bitcoin's robust network
2. Current Situation of the Bitcoin Layer 2 Sector: Layer 2 crypto projects, like Stacks, have become significant contributors to the broader cryptocurrency ecosystem. These projects are designed to improve the scalability, speed, and overall efficiency of Layer 1 blockchains, like Bitcoin and Ethereum. By addressing these fundamental issues, Layer 2 technologies enhance the usability and performance of dApps and other blockchain applications, making them more accessible and efficient for everyday use. The surge in popularity of Layer 2 solutions is partly due to the high transaction fees and slow speeds experienced on networks like Ethereum
3. Development Prospects and Challenges: Looking ahead, Layer 2 projects, including those associated with Bitcoin like Stacks, are expected to continue evolving and contributing significantly to the blockchain space. However, they face several challenges, such as scalability issues, as they work towards increasing transaction speeds and efficiency on the base blockchain. Additionally, security remains a concern, with vulnerabilities in the primary blockchain potentially impacting Layer 2 solutions. Despite these challenges, the ongoing development and innovation in Layer 2 technologies hold promise for more scalable, efficient, and secure blockchain ecosystems
The Stacks project, initially known as Blockstack, was co-founded by Muneeb Ali and Ryan Shea. They began working on this concept while at Princeton University's computer science department. The primary goal of Stacks is to build a decentralized computing network and app ecosystem with a focus on leveraging the security and stability of the Bitcoin blockchain.
Regarding the funding history of Stacks, Blockstack PBC, the company working on Stacks technology, has raised approximately $75 million through a combination of venture capital and token sales. This funding has played a crucial role in the development and launch of the main Stacks blockchain, which officially commenced in January 2021.
The project has undergone several funding rounds, including a significant Seed Round in November 2014, raising $1.3 million, and a $4 million funding round in January 2017. These rounds involved notable investors such as Union Square Ventures, Digital Currency Group, and SV Angel. Additionally, there were other rounds like the Private Round, Series A Round, and Public Round, where Stacks raised funds at various valuations, with the Public Round raising $18.1 million at a valuation of $396 million.
Stacks' progress in funding and development has been notable, especially considering it became the first SEC-qualified token offering in 2019, marking a significant milestone in the project's journey and the broader landscape of blockchain and cryptocurrency regulations.
1. Q4 2018: Launch of the Stacks Genesis Block.
2. Q4 2018: Blockstack unlocks approximately $25 million in funding from its December 2017 token offering.
3. Q4 2018: Hiro launches the Stacks Wallet for macOS and Windows.
4. Q2 2019: Blockstack announces SEC filing for a $50 million regulated token offering.
5. Q2 2019: Release of the Blockstack Whitepaper 2.0.
6. Q2 2019: Introduction of Clarity, a language for predictable smart contracts.
7. Q4 2020: Stacks cryptocurrency expected to reach non-security status in the United States.
8. Q2 2021: Launch of NFTrees - scalable and yield-generating NFTs.
9. Q2 2022: Release of Stacks 2.05.0.2.0.
10. Q1 2023: Stacks 2.1 - The latest Stacks network upgrade.
11. Q1 2023: Launch of Hiro Developer Platform.
12. Q2 2023: Introduction of Subnets for scaling.
13. Q4 2023: sBTC Developer Release.
14. Q1 2024: Stacks: Nakamoto Release, introducing sBTC, Clarity language updates, faster transactions, and more.
15. Q1 2024: sBTC: Unlocking Bitcoin Write
The sBTC Developer Release is scheduled for Q4 2023, with the Nakamoto Release following in Q1 2024. These updates are expected to include new features such as sBTC, which will allow trustless writing to Bitcoin and the movement of Bitcoin in and out of Bitcoin layers, alongside Clarity language updates and improvements in transaction speed
General Information about Stacks:
Stacks Overview: https://www.stacks.co/explore/get-stx
Developer Documentation: docs.stacks.co
Latest News and Updates: newsletters.stacks.org
Community Forum: forum.stacks.org
Discord Community: discord.gg
Reddit Community: reddit.com
Telegram Community: t.me
Twitter Updates: twitter.com
YouTube Channel: youtube.com
Looking at the potential future prospects and expert analyses of Stacks:
1. Short-term Price Predictions (2023): CoinCodex presents a bullish outlook for Stacks in the short term, predicting a rise to $0.742648 by December 6, 2023
2. , and $0.783748 by the end of December 2023
3. . This prediction aligns with the general bullish sentiment based on technical analysis indicators
4. Long-term Price Predictions (2024-2030): According to the historical price movements and BTC halving cycles, the price of Stacks is expected to see significant variations in the coming years. Predictions for the yearly high range from $2.58 in 2024 to $6.41 in 2029, before dipping to $2.27 in 2030
5. . By 2025, the price of Stacks could potentially gain 318.76% if it reaches the upper price target of $2.95
6. . In 2030, the upper price target is predicted at $2.27, which could mean a gain of 221.78% compared to today's price
7. Expert Analyses and Other Predictions:
Stacks (formerly Blockstack) is a decentralized platform that enables smart contracts and decentralized applications (DApps) to run on Bitcoin, extending Bitcoin's functionality without altering its core features. By leveraging Bitcoin's security and stability, Stacks allows developers to build on the world’s most secure blockchain. The platform uses the Clarity smart contract language, known for its predictability and security, distinguishing itself from other contract languages by ensuring developers know the exact behavior of their contracts before execution.
Originally developed by Blockstack PBC and co-founded by Muneeb Ali and Ryan Shea, the project was born from academic research and evolved into a broader ecosystem. Key milestones include the launch of the Blockstack browser in 2017, which provided early access to DApps, and a regulated token offering under SEC Regulation A+ in 2019, making Blockstack one of the first blockchain projects to conduct such an offering.
In 2021, Stacks 2.0 introduced major advancements like Proof-of-Transfer (PoX), connecting Stacks’ consensus directly to Bitcoin while enabling smart contracts via Clarity.
By 2024, Stacks had implemented the Nakamoto upgrade, a significant advancement aimed at improving transaction speeds and finality guarantees. This upgrade also introduced sBTC, a trustless, Bitcoin-backed asset, unlocking new opportunities for decentralized finance (DeFi) applications built on Bitcoin. The Nakamoto upgrade has further cemented Stacks' role as a leading Layer 2 solution for Bitcoin, enabling smart contract functionality and transforming BTC into a fully programmable asset.
Above are only for introduction, not intended as investment advice.