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Bitcoin Layer-2 Network Stacks implements SIP-034 upgrade to boost network capacity

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Stacks has launched a network upgrade on mainnet, implementing SIP-034 to increase DeFi app throughput by up to 30 times. The blockchain upgrade enhances block efficiency by resetting only the utilized resource limit, rather than all of them. Product lead Alex Huth said the change benefits read-heavy DeFi protocols such as concentrated liquidity and AMMs. The update will not alter STX token economics, but fees may rise as usage increases.

Odaily Planet Daily reports: The Bitcoin Layer-2 network Stacks has announced the implementation of its SIP-034 upgrade on mainnet, which can increase the network processing capacity of certain DeFi applications by up to 30 times. The upgrade achieves more efficient use of block capacity by optimizing transaction processing limits—resetting only the exhausted individual resource limits rather than all limits. Alex Huth, Product Lead at Stacks Labs, stated that this improvement most significantly benefits complex and read-intensive DeFi applications, such as concentrated liquidity and advanced automated market maker (AMM) designs. Although the upgrade does not directly alter the STX tokenomics, it is expected to indirectly increase transaction volume and fees as network activity grows. (The Block)

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