Stacks

What is the Stacks token?

Stacks Token (STX) is a native sign stack network (formerly known as Blockstack). Essentially, Stacks is Bitcoin scaling solution. It revolves around the implementation of decentralized applications (dApps) and smart contracts in Bitcoin.

The STX token powers the Stacks network and acts as a utility token. It is used to perform various Stacks network operations. including awards minersperformance smart contractsstyling and so on.

The price of Stacks fluctuates depending on various market factors, so to make an informed purchasing decision, be sure to check out the STX price history in the chart above.

Who developed the stacks?

The Stacks network was created Hero Systems PBC (formerly known as Blockstack PBC). Muneeb Ali and Ryan Shea are the founders of the project. In addition, the Stacks network was funded by such venture capital funds as Winklevoss Capital, Digital Currency Group, Y Combinator and others.

Main characteristics of Stacks tokens

In general, STX is a token that has more than one utility. Below are some of the main ones:

• Stack tokens are similar to fuel for the Stacks platform. So, every time a user wants to use one of the Stacks apps, he/she has to pay a modest STX fee. The commissions are then distributed as mining rewards.
• Stack tokens can be used to earn bitcoins. Essentially, STX holders have to pool tokens to generate BTC. Just notice that this process is called accumulation, not staking. Stacking is part of the Stacks Proof-of-Transfer consensus mechanism. Essentially, STX holders are locking up their tokens to receive Bitcoin rewards. The platform offers up to 10% per annum.
• Stack tokens can be used in a huge variety. dApps built on the Stacks network. This includes purchasing NFTs from NFT markets, investing in DeFi applications, and so on.

Additionally, Stacks coins can be minted using a proof-of-transfer mechanism. It is estimated that by 2050 there will be over 1.82 billion STX tokens in circulation.

Also, always keep in mind that most crypto assets are subject to high volatility. Stacks pricing is no different. This can be influenced by many factors affecting the cryptocurrency market.

Finally, please note that Stacks was the first crypto asset to be approved Securities and Exchange Commission (SEC) for sale in the USA. This allowed the project to survive cash offer according to Reg A+ standardwhich cost $28 million.

Is the Stacks token safe?

Bitcoin is the base level of the STX token. So this means the project is protected Proof of Work consensus mechanism. Additionally, the Stacks network has its own consensus mechanism called Transfer confirmation. Essentially, it is a mining model that allows users to transfer BTC to other miners, thus gaining access to STX mining. Overall, the STX token is secured using the Bitcoin network.