Stacking DAO V2 provides solutions to the new challenges brought by the Nakamoto upgrade.

CN
1 year ago

Nakamoto's upgrade marks a transformative era for the Stacks ecosystem.

Preface

The highly anticipated Nakamoto upgrade will completely change the Stacks ecosystem.

The Nakamoto upgrade for Stacks will accelerate the block time and ensure 100% Bitcoin finality. These updates will enhance Stacks' functionality, effectively providing an environment for developing applications on Bitcoin.

Source: nakamoto.run

Post-Nakamoto upgrade, market participants will find it easier to predict network fees, enhancing transparency and stability. Moreover, this update will lower network costs, enabling developers to innovate aggressively in building Bitcoin-centric applications.

However, this update will also bring new challenges, particularly in Stacking.

What is Stacking? Stacking involves locking STX tokens on the Stacks network to participate in Proof of Transfer (PoX) consensus. It is similar to PoS staking on Ethereum, but the rewards obtained by Stackers through Stacking are Bitcoin (BTC) used in the PoX consensus process, rather than the native token (STX).

In addition to changes in Stacking, running node operators will also have significant responsibilities to ensure network decentralization. Stacking DAO V2 will provide solutions for these new challenges.

New Challenges for Signers Post-Nakamoto Upgrade

One of the key changes brought by the Nakamoto upgrade is the requirement for Stackers to run a node, effectively becoming active network signers (Signers). The core task of signers is to verify and approve Stacks blocks generated by miners, contributing to the network's consistency, security, and decentralization.

This new complexity presents a new challenge, as Stackers need to not only operate a node but also ensure its continuous operation for block validation.

Because signers play a crucial role in promoting the health and security of a decentralized network, the successful introduction of reliable nodes will be crucial to Stacks' future success.

Stacking DAO V2

While the Nakamoto upgrade will bring many benefits and improvements, ensuring a robust signer network is also crucial.

Stacking DAO V2 will make it easier to enable new Stacks signers by introducing a user authorization model to delegate STX to node operators. This will incentivize the creation of new nodes and their participation in the Stacking DAO signer network.

The goal of Stacking DAO is to continue developing the Stacks ecosystem, and V2 will promote the growth and resilience of the Stacks network.

How does authorization work, and what are the benefits?

Stacking DAO V2 introduces an authorization model to delegate users' STX to signers based on their performance.

This authorization system serves two important purposes:

  • Network Health: By allocating STX to different signers, Stacking DAO V2 can promote network decentralization and resilience.

  • Potential Earnings Increase: By strategically allocating STX to high-performing signers, users can earn higher returns on their STX.

Stacking DAO Signer Network

The signer program launched by Stacking DAO makes Stacks more resilient and decentralized. The Stacking DAO signer network currently includes enterprise-level Stacking providers such as Luganodes, Restake, ALUM LABS, and others.

Source: nakamoto.run

Recently, DeSpread officially announced its addition to the Stacking DAO V2 signer network post-Nakamoto upgrade. By joining the Stacking DAO signer network, DeSpread will contribute to the decentralization and stability of the Stacks chain, while providing the highest Stacking returns to Stacking DAO users.

These companies are leaders in the Web3 space, with 99% uptime and a record of billions of dollars, and partnerships with companies such as Ledger, Metamask, Lido, and the Network Foundation. Collaborating with these node operators is a commitment to the development of the Stacks network, which will bring greater reliability to the Stacking DAO community and Stacks.

Conclusion

Nakamoto's upgrade signifies a transformative era for the Stacks ecosystem, elevating its performance, security, and efficiency to new levels. As the upgrade approaches, Stacking DAO V2 will guide users to join the signer network, promoting network decentralization by delegating STX to signers and helping Stacks develop more robustly.

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