Can Stacks (STX) coins be mined?

To participate in the Stacks (STX) PoX consensus mechanism and earn STX coins, users need to hold a minimum of 10,000 STX and connect their wallet to an eligible PoX reward pool, receiving and transferring STX regularly.

Dec 07, 2024 at 09:06 am

Can Stacks (STX) Coins be Mined?

Stacks (STX) coins cannot be mined in the traditional sense of proof-of-work or proof-of-stake mining. Instead, STX coins are earned through a process called "Proof of Transfer" (PoX).

Proof of Transfer (PoX)

PoX is a unique consensus mechanism developed by the Stacks ecosystem. It incentivizes users to transfer and receive STX coins on the Stacks blockchain. Nodes are rewarded for verifying and processing these transactions.

Eligibility for STX Earnings

• Hold STX coins: To earn STX, you must hold a minimum balance of 10,000 STX in your wallet.
• Connect to the PoX reward pool: You need to connect your wallet to an eligible PoX reward pool to participate in the earning process.
• Receive and transfer STX regularly: Nodes earn more STX by receiving and transferring more STX coins. Consistent activity is essential for maximizing earnings.

Steps to Earn STX Coins

1. Acquire STX coins: Purchase or acquire STX coins through exchanges or other acquisition methods.
2. Store STX in a compatible wallet: Create a Stacks wallet or store your STX coins in a compatible hardware wallet.
3. Connect to a PoX reward pool: Research and select a reputable PoX reward pool to connect your wallet to. The reward pool will handle the technical aspects of validating transactions and distributing rewards.
4. Regularly receive and transfer STX: Initiate transactions on the Stacks blockchain by receiving or sending STX coins. The more active you are, the higher your earnings will be.
5. Claim earned STX: Earned STX rewards are automatically accumulated in your connected reward pool. You can claim your earned rewards periodically, usually on a monthly or quarterly basis.

Factors Affecting Earning Potential

• STX holding amount: The more STX you hold, the greater your potential rewards.
• Transfer frequency: Regular and frequent transactions increase your earning rate.
• PoX reward pool performance: Different reward pools may offer varying rewards based on their reliability and performance.
• Stacks blockchain activity: The overall activity on the Stacks blockchain influences the amount of STX rewards distributed.

Additional Insights

• PoX is an energy-efficient alternative to traditional mining methods, making Stacks environmentally friendly.
• Earnings in STX can be used to cover transaction fees, participate in decentralized applications (dApps), or simply hold as an investment.
• There is no predetermined block reward for STX earnings. Rewards are dynamically adjusted based on network activity and inflation rates.
• Stacks (STX) is an emerging Layer 1 blockchain focused on bridging the gap between Bitcoin and smart contracts.