STX (STX)

📌 SIP Office Hours Recap Bitcoin Staking SIP (PoX-5) Q&A ◆ Overview A SIP Office Hours session hosted by @StacksOrg. A community Q&A on the Bitcoin Staking SIP (PoX-5) draft released on June 4. · Host: Stacks Foundation · Answering: Alex Miller + Muneeb Ali (Stacks Labs) · Centered on questions raised on the forum ◆ The Foundation's Role · Neutral, neither advocating for nor against the SIP · Purpose is to give the community space and resources to engage · Supporting a smooth governance process · Technical and economic questions answered directly by Labs ◆ Why Bitcoin Staking · Gives more people a reason to care that STX exists · The biggest top-of-funnel for onboarding Bitcoin holders to Stacks · Native BTC yield is Stacks' strongest differentiator · Smart contracts and NFTs alone don't move users right now · Bitcoin creates the incentive to hold STX, and STX is what secures the network ◆ Emissions Change · Block reward permanently restored to 1,000 STX · Halvings eliminated going forward · Add

📌 SIP Office Hours Recap Bitcoin Staking SIP (PoX-5) Q&A ◆ Overview A SIP Office Hours session hosted by @StacksOrg. A community Q&A on the Bitcoin Staking SIP (PoX-5) draft released on June 4 (50 min 53 sec). · Host: Stacks Foundation (neutral facilitator) · Answering: Alex Miller + Muneeb Ali (Stacks Labs) · Centered on questions raised on the forum ◆ The Foundation's Role · Neutral, neither advocating for nor against the SIP · Purpose is to give the community space and resources to engage · Supporting a smooth governance process · Technical and economic questions answered directly by Labs ◆ Why Bitcoin Staking · Gives more people a reason to care that STX exists · The biggest top-of-funnel for onboarding Bitcoin holders to Stacks · Native BTC yield is Stacks' strongest differentiator · Smart contracts and NFTs alone don't move users right now · Bitcoin creates the incentive to hold STX, and STX is what secures the network ◆ Emissions Change · Block reward permanently restored to 1,000 STX · Halvings eliminated going forward · Additional 500 STX boost for the first 6 months (→ 1,500 STX) Why 1,000 STX: · The baseline Stacks ran on for its first five years · The step-down to 500 in April 2026 was the exception · Based on data from Stacks Labs' finance team and SIP authors (Tange, Sam) · A proven level where market response can be modeled accurately Halvings are essentially legacy code: · A convention copied from early Bitcoin clones · Halvings have never actually triggered in Stacks history (always postponed for one reason or another) · The first trigger now was only due to SIP timing · Muneeb: Bitcoin (store of value) and STX (economic layer) are different assets and should be separated; STX is better suited to a fixed inflation model ◆ Funding the Boost (community feedback applied) · 6-month 500 STX boost = ~13 million tokens · Original plan: newly issued via Coinbase rewards · Community input: "If it's a growth mechanism, the endowment should fund it" · Revised direction: burn an equivalent amount from the treasury → still issued to miners via Coinbase to incentivize BTC bids → effectively funded by the endowment's growth programs · Pending financial and regulatory checks ◆ Mining Competition · Stacks mining is highly competitive on a financial basis · Miner margin is around 5% · ~95% of the STX block reward value flows back as BTC bids · Nakamoto Bitcoin finality makes reorg games impossible · High confidence in the market modeling ◆ How It Secures the Network (question) Q. How does Bitcoin Staking secure the Stacks network? · Holding STX is the core of network security · All governance = STX only · Signer weight (validation authority) = STX only · Bitcoin has no governance or signer role · Bitcoin's role: a powerful incentive to hold and align with STX · The more STX held, the more aligned, so the more weight assigned ◆ STX Price and Rewards · What matters is the STX/BTC ratio · Whether routed through USD or not, it's the same ratio · USD terms are used simply because they're easier to grasp · Since Bitcoin is always moving, USD-only tables assume a fixed Bitcoin price (relative movement only) ◆ Depth of Economic Research · Sam (ex-Black Lotus Capital) joined as a SIP author · Pulled tick-level trade data from all major exchanges (4-5 years) · Modeled market flows across pre-bull, bull, post-bull, and bear · Ongoing weekly monitoring · SIP-31 made it possible to bring on full-time specialists · The data behind the SIP appendices comes from this work ◆ Sell-Pressure Assumptions Miners: · Assumes miners sell 100% of the STX they receive (conservative) · Miners spend BTC to win block rewards, taking only ~5% margin SIP-31 unlocking STX: · Does not hit the market the same way · Much of it is used by the endowment for DeFi deployment / collateral · Even when sold, it's sold privately to long-term locked holders · ~4-5M STX unlocks monthly, but not all reaches the market ◆ Removing the 100-Block Burn Cycle · The existing PoX 100-block proof-of-burn cycle is removed · Historically ~600 BTC was simply burned (never distributed) · Now it flows through the smart contract to participants · About 5% of "free yield" is newly captured and distributed ◆ The Tension the Bond Structure Resolves (Muneeb) Two types of participants: · Institutions / OG Bitcoin holders: extremely risk-averse - Dislike variable yield, prefer a stable 3% bond - Willing to give up upside for downside protection · STX holders: early adopters, risk-tolerant - Betting on something new with big potential - Up to 7-8% yield in a bull market (bonds stay at 3%) - But may earn less in a downturn Why it matters: · Each group gets the product it wants · Reinforces STX as a higher-beta asset in the market's eyes · The clearer STX's identity, the easier its adoption and integration ◆ Next Steps · Forum feedback phase stays open · Draft will be refined and formally moved to GitHub · Additional calls planned beyond the regular SIP calls · Recording to be shared and summarized 📚 Forum discussion https://t.co/AeNeYpfct7 🔗 Official post https://t.co/QHFPyWmR6p