Stacks releases Bitcoin staking whitepaper for self‑custodial BTC yield

Stacks Labs published a whitepaper (May 13, 2026) proposing a self‑custodial Bitcoin staking mechanism that extends its Proof‑of‑Transfer (PoX) protocol to deliver native BTC‑denominated yield without wrapping or surrendering custody. The design uses “protocol bonds”: users timelock BTC on Bitcoin’s L1 and simultaneously lock STX for six months; Stacks miners’ BTC bids fund rewards. A managed PoX‑5 bootstrap (≈12 months) would target ~3,000 BTC capacity, a 3% APY in BTC and a minimum STX pairing ratio of 5%, before moving to permissionless PoX‑6 via on‑chain consensus. Market impact: the proposal could increase on‑chain BTC demand, provide a new native yield product that avoids custodial/wrapping risks, and boost demand for Stacks’ STX token as a pairing requirement — potentially bullish for BTC liquidity dynamics and STX utility, pending community approval and implementation risks.