FAQs, STX (Stacks) Staking¶
What is Stacks?¶
Stacks is a Bitcoin Layer 2 network enabling smart contracts and DeFi applications through Proof of Transfer (PoX) consensus. The native asset STX can be stacked to earn BTC rewards.
General FAQs on Stacking¶
Who can I Stack to on Hex Safe?
You can stack STX with these partners: - Chorus One - Kiln
Can I lose my STX due to slashing when stacking?
No. "Your STX is never at risk of slashing when stacking. The Stacks network does not penalize users by reducing their principal."
What is the average reward rate for Stacking STX?
Rates fluctuate based on several factors including BTC price, STX price, total BTC committed by miners, and total STX stacked across the network. Check Hex Safe for current average rates.
How are rewards generated in Stacks?
- Stackers must stake before a cycle begins for eligibility
- Miners commit BTC to write Stacks blocks
- Miners receive STX rewards and fees
- BTC committed by miners distributes to eligible stackers as rewards
How are rewards distributed?
- Paid directly in BTC
- Distributed at month's end
- Sent to the same Hex Safe Vault that performed the transaction
Can I have multiple STX Stacking positions from the same vault?
No. "Only one active staking position per vault is allowed. If you wish to stake multiple positions, you must use separate vaults."
How can I create a new vault to Stack again?
Contact your relationship manager or clients@hextrust.com for assistance setting up additional vaults.