Question 1

What is STX?

Accepted Answer

STX is the native token of the Stacks network, used to pay transaction fees on the network and participate in its PoX (Proof of Transfer) incentive mechanism. Stacks is a smart-contract network connected to Bitcoin: it executes contracts and applications on its own network rather than changing the rules of the Bitcoin main chain. Therefore, STX's primary role is to serve the Stacks network itself; it is not Bitcoin, nor is it the sBTC that represents Bitcoin on Stacks.

Question 2

What is the role of the Stacks network?

Accepted Answer

Stacks provides a smart-contract and application execution environment connected to Bitcoin. Application transactions and contract logic are processed on the Stacks network, while the network connects to the Bitcoin blockchain through its design. The Bitcoin main chain continues to operate under its own rules; Stacks provides programmable functionality in an independent network environment.

Question 3

What are STX's main uses?

Accepted Answer

STX's direct network use is paying transaction fees on the Stacks chain. Sending a transaction or calling a smart contract consumes Stacks network resources, and fees are denominated and settled in STX. It is also part of the PoX incentive structure: successful block-producing miners can receive newly minted STX and transaction fees; participants who meet the rules and lock STX can participate in BTC reward arrangements related to PoX. The inputs and assets received by these two types of participants differ.

Question 4

What is PoX (Proof of Transfer)?

Accepted Answer

PoX is Stacks' block-production and incentive mechanism. Rather than consuming computing power to mine BTC, miners submit BTC payments to compete to become the leader of a Stacks block; the selected miner produces the Stacks block. In return, successful miners can receive newly minted STX and network transaction fees. The BTC submitted by miners enters reward distributions for eligible STX-locking participants according to protocol rules; thus, the mechanism connects miners' BTC payments, STX locking, and block production.

Question 5

What is the relationship between STX and Bitcoin?

Accepted Answer

Stacks' relationship with Bitcoin is reflected in PoX and the network connection: miners use BTC to participate in Stacks leader selection, rather than using STX to replace BTC; Stacks blocks are connected to the Bitcoin chain according to protocol design. This does not mean STX and BTC are interchangeable. BTC is the asset miners pay in PoX, while STX is Stacks' native token; they have different denomination, incentive, and asset roles in the network.

Question 6

What can STX holders participate in?

Accepted Answer

Users who hold STX can lock STX under PoX rules (commonly called stacking) and register a reward address to participate in BTC reward distributions. Locking does not mean paying STX to miners; locked assets and satisfaction of current eligibility conditions are prerequisites for entering this mechanism. Whether participation succeeds and the distribution received depend on the current protocol rules and participation method. Availability during the lockup period, reward cycles, and delegation arrangements should all follow the PoX-5 rules applicable to the wallet or service actually used.

Question 7

What is the difference between STX and sBTC?

Accepted Answer

STX is the native token of the Stacks network: it is used for Stacks transaction fees and is part of the incentive structure for PoX miners and STX-locking participants. sBTC is an asset on Stacks that represents Bitcoin, enabling BTC to be used in Stacks applications and contract environments. The two should not be conflated merely because both are within the Stacks ecosystem. STX's creation and protocol responsibilities originate from the Stacks network; sBTC is designed to represent BTC, and its minting, redemption, and availability depend on the sBTC mechanism.

Question 8

What is the smallest unit of STX?

Accepted Answer

The smallest unit of STX is the micro-STX, with 1 STX = 1,000,000 micro-STX. The underlying integer denomination for on-chain transactions and balances uses micro-STX, while wallets typically display it as STX.

Question 9

What version is the current PoX mechanism?

Accepted Answer

The official technical specifications list the current mechanism as PoX-5. One PoX reward cycle corresponds to 2,100 Bitcoin blocks and is divided into a prepare phase and a reward phase. The prepare phase handles the registration and processing required by the protocol for the next reward arrangement; the reward phase distributes BTC submitted by miners according to valid arrangements for that cycle. The phase structure means participants cannot treat an action at any arbitrary time as immediately entering the next reward distribution.

Question 10

How is the reward pool in PoX-5 formed?

Accepted Answer

The PoX-5 reward pool is formed by BTC payments submitted by miners competing for Stacks block leadership. If a miner successfully becomes the leader, it receives newly minted STX and transaction fees; its BTC payment is distributed according to the rules of the current cycle. Reward distribution is organized by reward cycle and depends on participation and reward-address arrangements valid during the relevant phase. In other words, BTC rewards are not generated automatically simply by holding STX; they are related to locking, eligibility, and protocol processing for that cycle.

Question 11

What applications can be developed on Stacks?

Accepted Answer

Stacks uses the Clarity smart-contract language to develop applications. Clarity is designed for Stacks and Bitcoin-related use cases and supports contracts that execute logic based on readable Bitcoin state. Therefore, developers can build on Stacks applications that require smart-contract execution and have rule-based connections to Bitcoin state; the specific functions of an application are still determined by each contract's code.

Question 12

Where can I find official information about STX and Stacks?

Accepted Answer

To learn about STX and Stacks, first consult the Stacks official documentation's network overview, PoX explanation, and technical specifications. These materials explain the network's positioning, participant incentives, and current parameter definitions, respectively. Before transferring, locking STX, or calling a contract, also verify the destination address, transaction fees, lockup conditions, and operation confirmation information in the wallet or application being used, because specific operations are governed by the rules applicable to that transaction and service interface.

Stacks (STX) Price

Stacks (STX) Price Performance

Fear & Greed Index

Why Did Stacks (STX) Rise in the Last 24 Hours?

About Stacks (STX)

Use Cases and Features

Supply and Issuance Mechanism

How to Buy and Use Stacks (STX)

How to Buy

Related Markets

Simple Earn

Fiat Exchange

Stacks (STX) Basics & Market Insights

Fundamentals

Market Analysis

Frequently Asked Questions About Stacks (STX)