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