Stacks rolled out its PoX-5 public testnet this week, bringing a Bitcoin staking mechanism that doesn't require users to hand over their coins. The upgrade lets participants earn roughly 3% yield while maintaining self-custody. The mainnet hard fork is expected around July 29, with a 3,000 BTC cap on staked assets.
How the staking works
The PoX-5 testnet introduces a staking design that keeps Bitcoin in the user's own wallet. Instead of transferring BTC to a third party or a smart contract, the mechanism uses a cryptographic proof to signal staking. That's a shift from earlier proof-of-transfer models where coins were sent to a burn address or pooled. For Bitcoin holders who've been wary of yield products, this is a different pitch: you don't lose control.
The 3,000 BTC cap
When the mainnet upgrade goes live, only 3,000 BTC will be eligible for staking under the new mechanism. That's a relatively small slice of the total Bitcoin supply, but it's meant to test demand and network stability. The yield is pegged at around 3% — modest compared to some DeFi protocols, but notable because it's earned on Bitcoin without giving up custody. The cap also limits the downside if something goes wrong.
Timeline and next steps
The testnet is live now. Developers are asking the community to run nodes and test the staking flow before the hard fork. The target date for mainnet activation is July 29, though that could shift if bugs surface. After the fork, the cap will be enforced on-chain. The Stacks team hasn't said whether the cap will be raised after the initial rollout. For now, the focus is on getting the testnet right and making sure the self-custody staking works as advertised.
