In our previous guide, we explained the Stack 2.0 ecosystem in detail, i.e., the consensus algorithm used for transaction finality, language opted for the smart contract, different types of users involved in the mining process, etc.
In this article, we will explain How STX holders can stake their tokens and earn Bitcoin as a reward.
Table of Contents
Usage Guide
To stake your STX token, go to the Stack page.
Click on Start Stacking, and it will ask you to install the Stacks Wallet (desktop app) and will redirect you to the page.
The wallet application is available in Windows, Linux, and macOS operating systems.
Choose the correct operating system and click on download. An .exe file will be downloaded into your system. Run the setup, and once the application gets launched, it will give you two options for wallet installation.
- Create A New Wallet
- I Already Have A Wallet
If you are a new user, then click on Create A New Wallet.
The application will further give you an option to create a software wallet or connect your hardware (Ledger/Trezor).
Click on Create A Software Wallet. It will show your 24-word keyphrase, which you need to store safely. The wallet application will ask you to verify the keyphrase. Once verified, you will be prompted to set up a wallet password.
Your Stacks wallet is created successfully. You can see the landing page.
Receive
Through this option, you can get your public address which you can share with other users to receive STX tokens.
Click on Receive, and it will ask you to provide your wallet password. Once you have filled in your correct password, it will show your wallet address to receive STX tokens.
Get the STX Token
You can get the STX token from Binance with the BTC/STX pair.
Place the order. Once confirmed, you can see the STX tokens in your Binance account.
Transfer STX From Binance To Stacks Wallet
Now, you need to transfer these STX tokens to your Stacks wallet.
To withdraw, click on withdraw against the token name and enter the amount of STX tokens and the recipient’s wallet address and then submit the transaction.
Once confirmed, you can see the STX tokens in your wallet.
Send
The Send option allows you to send the STX tokens to another account. The Stacks wallet allows you to send tokens to the recipient by providing the recipient’s wallet address. Enter the recipient’s address and the token value.
Stacking
You can stake your STX token and earn Bitcoin as a reward.
To stake, click on get started, and it will show you two options which you can use to stake your token:
- Stack by yourself – Choose this option if you want to stake your STX token by yourself. But for that, you need a minimum of 70,100 STX tokens in your wallet.
- Delegate – You can delegate your tokens to other users/pool who can stack on your behalf.
We will go for Delegate as we have a lesser amount of STX tokens.
Choose Delegate Address
Click on Continue displayed in the above screenshot. It will redirect you to the page that consists of a list of available delegates you can choose from.
Each of these options will lead you to the Delegator site or profile where you need to login/signup. Different delegators have different minimum token criteria. So check before opting.
Staked – Minimum token required is 10,000 STX.
Friedger’s Pool – At the time of writing the article, the pool is closed.
So, we tried with OKCoin. Click on it, and it will redirect you to the page.
It will send you an email verification code to your email address. Once verified, your setup is done.
Now the application will ask you about the type of account you want to setup:
-
Individual
-
Corporate
Select your option. We have chosen Individual. The application will ask for your personal details like name, nationality, and ID proof. Once done, your OKCoin account is set up successfully.
Deposit STX Into OKCoin Account
To deposit funds, go to the Funding Account tab.
From the drop-down, select the token that you want to deposit.
It will show you the deposit details like STX wallet address and memo number.
Important: Users are recommended to set up a withdrawal password and 2FA for account safety before making any deposit/withdrawal transaction into the OKCoin account.
Now go to your Stacks wallet and transfer funds into the OKCoin account.
Important: The STX token deposit process is quite slow. It takes too much time to send STX tokens from the Stacks wallet and confirming and depositing it into the OKCoin account.
We now have the STX tokens in our OKCoin account which we will now delegate.
Important: With OKCoin, you need to have a minimum of 50 STX tokens to participate in the stacking process.
To Delegate, go to the Earn tab.
Click on Deposit and enter the amount of STX tokens you wish to stake.
A page will pop up showing your locking period and estimated BTC return/day. Confirm the process by clicking on the Deposit button.
You can check your deposited tokens and accumulated bonus from the Earn tab.
Important: The STX tokens will be locked in the stacking pool for 14 days and you will earn BTC randomly over the period of 14 days. Users will not be able to withdraw during this period. At the end of the cycle, users need to request unlocking STX tokens. In case you missed the request, your tokens will be added to the next cycle automatically.
Conclusion
Stacking STX provides a passive way to earn Bitcoin. Users can stake their STX tokens into the stacking pool for a locking period of 14 days and earn rewards for supporting the network. However, we have noticed that the transactions are taking too much time to commit. Both the sending tokens from the Stacks wallet and depositing tokens into the OKCoin account took too much time. Although OKCoin allows you to stake a minimum of 50 STX tokens, it is custodial. That means you do not have the keys of your account, which is a bit risky. The non-custodial stacking facility provided by the Staked delegator requires you to have 10,000 STX tokens, which may not be suited for small traders.
Resources: Stacks Website
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