Stacks, the Bitcoin Layer 2 ecosystem, has published a whitepaper describing a new Bitcoin Staking model that lets users stake BTC and earn yield paid in BTC.
From STX stacking to BTC staking
Stacks uses a consensus mechanism called Proof of Transfer, or PoX. In the previous model, users who wanted to earn BTC yield had to acquire and “stack” STX, the native token of the Stacks network. Miners would send BTC to these STX stackers as part of the consensus process, creating a flow of Bitcoin rewards back to participants.
The old STX stacking model offered yields that historically ranged from roughly 7% to 20% in BTC, though more recent rates have been variable and generally lower.
The new Bitcoin Staking model eliminates the STX requirement entirely. Users can stake BTC directly and earn BTC yield.
