The Stacks Token

STX is the native cryptocurrency of the Stacks blockchain, built on top of Bitcoin to enable smart contracts and decentralized applications while leveraging Bitcoin’s security. These are its primary uses in the ecosystem.

Transaction fees

STX pays for transaction fees on Stacks: executing smart contracts, processing transactions, and registering digital assets.

Stacking — similar to staking, not the same

STX holders can lock tokens to support the network’s consensus. In return they earn bitcoin, not more of the same token. That is the distinction from traditional staking, and it ties Stacks directly to Bitcoin’s economy.

Smart contract execution

STX fuels Clarity smart contracts on Stacks. Clarity is designed for safety and predictability. Developers write contracts that can interact with both Stacks and Bitcoin.

Governance

STX holders have governance rights on the network. They can take part in decisions on upgrades, protocol changes, and other proposals.

Mining rewards

Miners are rewarded in STX for mining new blocks. Stacks uses Proof of Transfer: miners transfer bitcoin to be eligible to mine STX, which further integrates with Bitcoin’s security model.

Payment in the ecosystem

STX can be used as payment or value transfer inside applications on Stacks — DeFi platforms, NFT marketplaces, and other decentralized apps.

Liquidity and trading

STX trades on various cryptocurrency exchanges. That liquidity is how people buy, sell, or trade STX for other cryptocurrencies or fiat.

DeFi and yield

On Stacks, STX can be used in DeFi for lending, borrowing, or earning yield through liquidity pools or yield farming.

STX plus Bitcoin’s security, plus PoX, is the point: smart contracts and apps with Bitcoin’s robustness behind them.