Okcoin Earn STX Stacking update — participate in community feedback

written by OKCoin

Okcoin Earn STX Stacking update — participate in community feedback

STX Stacking on Earn has been one of the more popular Stacking products for the Okcoin investor community. As the first and only exchange to offer this product, we have proudly solved several challenges to ensure the customer experience in earning high returns in bitcoin is simple and easy.

We are making changes to the product to ensure that this experience is sustainable for the longer term. We want to share an outline of these changes, the challenges and ways we are solving them, and an option for the community to voice their opinion so we can together choose a direction that ultimately is best for our customers. 

What’s changing?

We temporarily paused STX stacking on Okcoin for the 4th Stacking cycle (from March 12 to March 26). During this time you were not able to earn BTC rewards on your STX holdings. Stacking on Okcoin Earn has officially resumed in time for the 5th stacking cycle (estimated to begin on March 26).

For customers who previously Stacked STX via our Earn product, or who have committed STX for the 4th cycle, automatically had their STX redeemed and transferred to their Okcoin Funding Account at the end of the 3rd cycle (March 12).

If you want to earn BTC in the 5th stacking cycle, you will need to re-deposit your STX onto Okcoin Earn and select how long you would like to commit your STX. Deposits for the 5th cycle will be open between March 16 and March 24 (estimated). We are offering an additional bonus for customers who come back and participate in the 5th cycle. More details on this will follow. 

Why are we making these changes?

Our goal when bringing STX Stacking to Okcoin users was to make it as accessible, flexible and rewarding as possible. Despite some challenges on how Stacking works on the protocol level, we were able to overcome these to deliver an experience that users love.

Stacking STX on the protocol requires a minimum of 80,000 STX

Okcoin made Stacking easy and accessible to anyone — you can earn BTC with as little as 50 STX. While the Stacks protocol requires users to commit a minimum of 90,000 STX, we solved this by giving Okcoin customers the opportunity to pool STX and collectively Stack together.

Stacking STX on the protocol requires a trade off between flexibility and full rewards

The STX protocol has an overlap between cycles, preventing Stackers from seamlessly transitioning from one cycle to the next, unless they lock up their STX for multiple cycles. This was a major challenge of the protocol that we had to overcome. 

When we first integrated Stacking on Earn, we tried to provide our customers with both flexibility and rewards by supplying additional capital to cover the overlap period, so that customers are able to move from one cycle to the next seamlessly, even though their funds remained locked up in the previous cycle. Unfortunately, the growing popularity of Stacking via Okcoin Earn has made the capital requirements unsustainable on our end.

As a result, in order to maintain a balance of flexibility and sustainability, we’ve decided to update the Stacking process on Earn to be able to offer customers two options for how long they’d like to lock their STX and earn BTC.

Currently, a Stacks Improvement Proposal (SIP) exists that proposes making continuous Stacking possible. That change may be implemented by miners in the coming months. STX holders are encouraged to leave their feedback on the SIP.

We loved hearing from you 

As part of this update, we called on the community to vote for a product direction. 

On Monday, March 8, at 8:30 am PST, we hosted a fireside chat to discuss our plans and answer Stacking-related questions with Okcoin CEO Hong Fang and Stacks founder Muneeb Ali. We also published a survey to gather community feedback on which direction we should choose to move forward. If you are unable to attend, we will record the session, and our teams will be available to answer any of your questions in our telegram communities. 

Okcoin is not engaged in the offer, sale, or trading of securities. No FDIC or SIPC protections are available. Please consult your own investment/tax professional regarding your specific circumstances. Rewards terms may change without notice and are subject to Okcoin’s Terms of Service.

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