Stacks approves upgrade letting Bitcoin holders lock BTC to earn returns

The Stacks community has approved SIP-045, the protocol’s Bitcoin Staking upgrade, with more than 99% of votes cast in favor, co-creator Muneeb Ali announced. The hard fork is targeted for around July 29 at approximately Bitcoin block 907,740.

SIP-045, formally called “PoX-5: Bitcoin Staking and Emission Schedule,” introduces a mechanism that lets Bitcoin holders stake their BTC directly on the Stacks network. Instead of the current Proof-of-Transfer consensus – where miners send Bitcoin to stackers in exchange for STX – the upgrade allows Bitcoin to be locked as collateral to secure the layer and earn yields. The emission schedule of new STX tokens is also adjusted under the proposal.

The vote passed with overwhelming support, reflecting strong community alignment behind the upgrade. Stacks, a Bitcoin layer for smart contracts, has been working toward native Bitcoin staking since the Nakamoto release earlier this year. This proposal is a key piece of that roadmap.

For traders, the upgrade opens a new yield avenue for Bitcoin, potentially drawing more capital into the Stacks ecosystem. The hard fork date is tied to a specific Bitcoin block height, meaning timing could shift slightly depending on block production. Market participants should watch for any delays or issues during the fork activation.

The Stacks team has not released detailed instructions for token holders or infrastructure operators ahead of the upgrade. Those running nodes or using Stacks-based applications will likely need to update their software by July 29. Ali said the code is ready and the community is aligned.

The clear vote margin suggests minimal political friction, but execution risk remains. Hard forks always carry a chance of chain splits or software bugs. The next concrete watch item is the successful activation at block 907,740 – and whether the new Bitcoin staking feature works as designed on day one.