Stacks Labs and UTXO Management announced that UTXO will become one of the first participants in Bitcoin Staking on the Stacks network. UTXO is the Bitcoin-focused asset management subsidiary of Nakamoto Inc. and plans to allocate part of its existing Bitcoin holdings to the new staking protocol.
The initiative allows institutional investors to earn Bitcoin-denominated yield without transferring custody of their $BTC. Under the Bitcoin Staking model, participants create protocol bonds by combining a Bitcoin timelock on the Bitcoin network with a corresponding $STX token lock on Stacks. The bonding period lasts six months, while the Bitcoin remains secured on the base layer under the participant’s own control.
Yield is generated through Stacks’ Proof-of-Transfer (PoX) consensus mechanism. In this system, miners spend $BTC to compete for block rewards on Stacks, and the contributed Bitcoin is distributed to eligible staking participants. The amount of $STX locked determines how much staking capacity a participant receives.
According to the project, PoX has been operating since January 2021 and has distributed more than 4,200 $BTC to participants. The first phase of Bitcoin Staking will be launched later this year during a bootstrapping period overseen by the Stacks Endowment.
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