March 27, 2024

Stacking DAO V2: Bootstrapping the Stacks Validator Network

Stacking DAO mission has always been to support the Stacks network and contribute to its ecosystem growth.

The first step was making it simple for the community to earn Stacking yield. Then, it was about bootstrapping DeFi on Stacks with protocol integrations. The Nakamoto Upgrade will mark the next milestone.

The release has been a core focus for Stacks engineers in the last couple of years, and Stacking DAO is here to bring this work forward.

With the Nakamoto launch, it’s Stacking DAO duty to keep assisting Stacks by forming a set of signers to ensure an efficient and decentralized block production environment on Stacks.

For this reason, Stacking DAO is setting up the foundation for an entire validator network post-Nakamoto release. With Nakamoto, Stackers’ responsibilities will expand to effectively become validators (on Stacks “signers”) and contribute to chain security

Stacking DAO V2 has been in the works for a few months and will be live after Nakamoto is activated, enabling the delegation of STX deposited on the protocol, resulting in:

  • Maximizing Stacking yield for users
  • Enhancing Stacks network health
  • Improving signers’ discoverability

The Stacks community, from holders to signers, is the network's backbone; Stacking DAO will become their “Stacking” hub so that they can thrive even further.

How will Stacking DAO V2 create a healthy signer network?

Right now, all the STX deposited in the protocol are using Stacking DAO as the pool to earn rewards.

But Stacking DAO is committed to help its users earn more and increase Stacks decentralization by creating a strong signer community.

In the near future, Signers such as Stacking pools will receive STX delegated by Stacking DAO depositors to strike a balance between ensuring value for protocol users and the mission of driving decentralization.

STX liquidity will be spread across Signers, according to a high-performing strategy, which will help:

  • Ensure Stacking DAO users receive the highest Stacking yield possible
  • Signers experience growth as more tokens are used to mint stSTX.

To achieve these goals, Stacking DAO will launch a validator program with incentives to kickstart the formation of a comprehensive and healthy set of Stacking pools ready to receive STX delegation from the protocol.

All the top-tier liquid Stacking protocols have already applied this concept, from Lido and Rocket Pool to Jito and Marinade, to create a more robust protocol and ecosystem.

The Stacking DAO Impact on the Stacking Landscape

With this initiative, Stacking DAO aims to become the leading infrastructure for the Stacking process, making Stacks more resilient.

As the protocol grows in terms of deposits, it will not only benefit users and the DeFi ecosystem; it will also ensure a fair distribution among signers, stimulating the creation of new Stacking pools.

It’s Stacking DAO responsability to innovate on Stacks, and the validator program will make this vision a reality sooner rather than later.

Stacking DAO Details:

Mint stSTX today and earn up to 10% yield on your STX: https://app.stackingdao.com/

Follow us on Twitter to always be up to date on Stacking DAO: https://twitter.com/StackingDao

For any questions or support, join our Telegram community: https://t.me/+0jPjegAOoMwyNTU0

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