Stacks is set to activate its PoX-5 hard fork this week, introducing the consensus infrastructure needed to support Bitcoin staking on the network.
The upgrade is scheduled to activate at Bitcoin block 960,230, currently expected around 2 a.m. Eastern Time on Thursday, July 30. The precise timing may change depending on how quickly Bitcoin blocks are produced.
PoX-5 upgrades Proof-of-Transfer, the Stacks consensus mechanism under which miners commit BTC to compete for the right to produce Stacks blocks and receive STX rewards.
The upgrade introduces Bitcoin Bonds, which allow users to lock BTC on the Bitcoin network and pair it with STX on Stacks to earn BTC denominated yield while retaining control of their Bitcoin keys.
Stacks describes the structure as a protocol bond. Bitcoin remains locked on Bitcoin layer one, while the corresponding STX position is held through a Stacks smart contract. Yield is funded by the BTC that Stacks miners commit through Proof of Transfer.
