Stacking STX: Understanding BTC Rewards

  • ** See below for why rewards behave that way
  1. BTC rewards increase: Miners will want to increase their chances to win the block and STX, they may be incentivized to put up more BTC.
  2. BTC rewards decrease: Miners will continue to bid for STX rewards, but the incentive to win STX decreases relative to BTC, miners may want to hold more BTC.
  3. BTC rewards decrease: Miners will continue to bid for STX rewards, but the incentive to win STX decreases relative to BTC, miners may want to hold more BTC.
  4. BTC rewards increase: Miners will want to increase their chances to win the block and STX, they may be incentivized to put up more BTC seeing the price decrease.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store