Token Type Native Token Uses Payments
The fundamental use case of the Stacks cryptocurrency (STX) is to pay for network activity and contract execution. STX owners can also lock their holdings on the network (an action known as "Stacking") to support the Stacks blockchain's consensus mechanism. Stacking participants earn Bitcoin (BTC) rewards in exchange for their contributors.
Launch & Initial Token Distribution
The Stacks v1 genesis block introduced 1.32 billion tokens when it went live in November 2018. Of the initial 1.32 billion STX, 866,827,880 STX were allocated to pre-launch purchasers, while 453,172,120 remained unallocated. A portion of the remaining amount was distributed to 2019 token sale participants through the network's hard fork upgrade in October 2019. The initial supply of 1.32 billion STX were allocated as follows: 8.34% was allocated to a Long-term treasury. These tokens are locked until October 30, 2021, and will then follow a three-year time lock. 13.53% was distributed to the Founders. These tokens follow a three-year time lock starting on October 30, 2018. 8.23% was distributed to Equity Investors. These tokens follow a three-year time lock starting on October 30, 2018. 5.65% was reserved for Employee distribution. These tokens follow a three-year time lock starting on October 30, 2018, apart from 5,534,869 of them. 29.93% was distributed to 2018 Token Sales participants. These tokens follow a two-year time lock starting on October 30, 2018, apart from 50,000,000 of them, which vest over four years. 9.09% was distributed to 2019 Token Sales participants. These tokens follow a two-year time lock starting on October 18, 2019. 3.03% was reserved for the Reg A App Mining. This program is meant to reward both application developers who create well-reviewed applications and the reviewers of those applications. 22.20% was allocated to a Short-Term Treasury. These tokens follow a two-year time lock starting on October 18, 2019. In the case of an approximately two-year time lock, 1/24th of the tokens are unlocked at the time of distribution, and 1/24th unlock on an approximately monthly basis then onward. In the case of an approximately three-year time lock, 1/36th of the tokens are unlocked at the time of distribution, and 1/36th unlock on an approximately monthly basis then onward. Funding Rounds Seed Round $1.30M Nov 2014 Equity Series A $4.00M Jan 2017 Equity Blockstack Employee LLC Round 1 $4.36K Sep 2017 Private Sales related to Blockstack Token Funds $26.30M Nov 2017 Public SAFT $21.20M Dec 2017 Public Blockstack Employee LLC Round 2 $0.50M Oct 2018 Private Token Sale $26.40K Jan 2019 Private Reg A+ Token Sale $10.90M Sep 2019 Public Reg A+ Token Sale $4.60M Sep 2019 Voucher Program Reg S Token Sale $7.60M Sep 2019 Public Reg S Token Sale Sep 2019 Private Initial Supply Breakdown Launch Style Crowdsale, Private Sale Initial Supply 1,320,000,000 Founders & Project Investors 49.8% 47.2%
Key Info General Emission Type Burn & Mint Precise Emission Type Other Burn & Mint models Liquid Supply Curve Details Stacks revamped its economic policy in Oct. 2020, choosing to switch from an adaptive burn and mint mechanism to a more straightforward decreasing issuance model before reaching a plateau. New token issuance is still frontloaded in the network's early years, but issuance will undergo three halvings that will occur once every four years. The new release schedule is as follows: 1,000 STX per block for years one through four 500 STX per block for years five through nine 250 STX per block for years ten through fourteen 125 STX per block indefinitely
Key Info General Consensus Other Proof-of-Transfer (PoX) consensus The Stacks network operates on top of the Bitcoin blockchain and leverages its Proof-of-Work (PoW) security model. The Hiro PBC team selected this approach because bootstrapping a PoW network is difficult and time-consuming, and it would compete directly with Bitcoin to win mining resources. Instead of mimicking Bitcoin's success outright, Blockstack miners participate in a Proof-of-Transfer consensus model, where miners relinquish their BTC as the economic cost for their participation (akin to electricity and equipment costs in traditional mining). In the event of a fork (if two different miners propose valid blocks simultaneously), Stacks clients will need to eventually select the longest fork as the valid chain. This design is similar in nature to Bitcoin, where the fork with the most accumulated "work" is considered the correct chain. Leader selection The likelihood of winning the right to mine the next block (and earn the block reward and any accompanying transaction fees) increases with the amount of Bitcoin a miner burns compared to other participants. On a more granular level, Stacks determines the next block via a verifiable random function (VRF). VRFs to ensure the miner selection process remains random and impractical to game.