Introduction

‍Stacks is a Bitcoin L2 that enables smart contracts and decentralized applications to use Bitcoin as a secure base layer. Stacks is the current leading Bitcoin L2 by developer traction and market cap and is poised to help unlock Bitcoin and its $1T in passive capital as a fully programmable, productive asset.

With the recent rollout of the Nakamoto upgrade on Stacks, Luganodes is proud to be one of the early signers on the network. This upgrade marks a significant step forward in the Stacks ecosystem, bringing faster transaction speeds, enhanced security, and improved finality guarantees. As a signer, Luganodes is excited to offer stacking services to STX holders and enterprises.

Validator Details

Validator Name- Luganodes

Pool Address - SP2TXK60BBCSNDE1GNNMHM89KY6ZY4ZHTBTJP8X9V

*Note - Pool address will be used during delegation

Unbonding Period

• Unbonding period is a timeframe in which the funds are locked when you unstack.

• Lock-up period for STX tokens vary depending on the cycles chosen during stacking, with adjustments for Bitcoin network confirmation times. This lockup period ensures the security of the Stacking process.

• Stackers must confirm their intention to lock STX before the prepare phase of the subsequent reward cycle, typically occurring during the final 100 Bitcoin blocks of the ongoing reward phase. This ensures the smooth functioning of Stacking and aligns with the network's reward cycle.

No Slashing

• Unlike other blockchains, Stacks' Stacking has no slashing. No risk of losing your STX.

Reward Distribution Mechanisms:

• Manual Distribution: Some pools track delegated amounts, set their BTC address as the reward address, and manually distribute BTC rewards based on each individual's delegated proportion. This process involves the pool using its own UI and a wrapper contract to manage pool members' BTC addresses.

• Automatic STX Distribution: Luganodes is currently working on the best enterprise-grade solution to distribute rewards automatically in STX. Pool members provide a Stacks address and use a contract principal as the pool operator address. When the pool operator receives rewards in BTC, they convert it to STX tokens for distribution.

Step-by-Step Stacking Guide

Step 1 - Head over to the Official

• For this guide, we recommend using LockStacks as it's a non-custodial solution and can pay out rewards in both STX and BTC ( depends upon pool operator how they are going to distribute the rewards) .

Step 2 - Connect your wallet and Select Stack in a Pool

• Ensure you have enough STX in your wallet to cover the minimum requirement (50 STX required to delegate to the Luganodes pool, plus additional STX for gas fees). This ensures a seamless and secure experience while maximizing your rewards.

• For this guide we’ve used leather wallet chrome extension

• Once you’ve connected your wallet, click on “stack in a pool”

Step 3 - Enter the Pool Address and Amount of tokens to Stack

• Select “Custom Pool” and Ether the Luganodes Pool Address

• Pool Address - SP2TXK60BBCSNDE1GNNMHM89KY6ZY4ZHTBTJP8X9V

• Enter the amount of tokens you want to stack (50 STX required to delegate to the Luganodes pool)

Step 4 - Set the duration of Stacking

1. Indefinite Permission:

• Allows the pool to stack on your behalf for a maximum of 12 cycles at a time.

• You can revoke this permission at any time, but keep in mind that your STX will be locked until the end of the duration initially set by the pool.

• Recommended for users who want to stack continuously and understand that they must revoke the permission before the set duration ends to access their STX again.

3. Limited Permission:

• Sets a limit between 1 and 12 cycles for how long the pool can stack on your behalf.

• Ensure you don't set it lower than the number of cycles your pool intends to stack.

• One cycle lasts about 15 days.

• Recommended for users who want to ensure their funds are not locked beyond a certain period. This option provides more control over the duration of the stacking commitment.

Step 5 - Confirm the transaction and start Stacking

• Click on “Confirm and start pooling”

• Sign your transaction

You are now successfully pooling your $STX

• You can also check your pooling details from the home page of the LockStacks website under “ View your Pooling Info”

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 40+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.