Stacks has completed its second Bitcoin staking bond, filling capacity with 505 BTC enrolled alongside 6.7 million STX and distributing 1.21 BTC in rewards to participants.
Bond Structure and Returns
Bond 2 operates under Stacks' PoX-5 upgrade, which went live on July 30. The bond targets an annualized yield of approximately 3%, paid in Bitcoin and funded by Stacks miners' earnings. Rewards are distributed weekly over a six-month term. Participants must stake a small amount of STX, roughly 5% of the Bitcoin value they commit.
The bond reached its approximate 500 BTC capacity by October 12, 2026.
Liquid Staking Dominates Deposits
Approximately 483 BTC of the 505 BTC total arrived through liquid staking, primarily Stacking DAO's stBTC product. The Xverse pool also contributed to participation.
Liquid staking allows bond participants to earn rewards while using their position elsewhere in Stacks DeFi. Holders can, for example, borrow USDC on Zest Protocol without unwinding their staked Bitcoin.
The concentration of deposits through a single product means the health of that product becomes a meaningful variable for the overall program.
Comparison to Genesis Bond
Bond 2 follows the Genesis Bond, which launched on September 10 and distributed 0.28 BTC in rewards during its first two weeks. Across both bonds, 735 BTC has now entered Bitcoin staking on Stacks, with Bond 2 accounting for the bulk of that total.
Broader Network Activity
Since PoX-5 launched, total STX staked has climbed more than 25%, rising from 392 million to 493 million STX. Decentralized exchange volumes and synthetic Bitcoin holdings on Stacks reached year-high levels in Q3 2026.
Stacks founder Muneeb Ali indicated that the on-chain staking mechanism is functioning as intended and that additional capacity may be offered in future cycles.
Key Considerations
The 3% target return depends on Stacks miners' earnings, so actual returns may vary with network activity and broader market conditions. For STX holders, the bond structure creates demand, as each Bitcoin entering a bond requires STX paired alongside it.
