Bitcoin holders have spent years watching their coins sit idle, earning nothing, while the rest of crypto invented increasingly creative ways to generate yield. Stacks is about to change that calculus in a meaningful way.
The Stacks network activates its PoX-5 upgrade, formally known as SIP-045 or the Bitcoin Staking and Emission Schedule Alignment proposal, at Bitcoin block 960,230. That block is expected to be mined on July 29, 2026, around 03:00 UTC.
What PoX-5 actually does
Under the new system, users lock BTC directly on the Bitcoin base layer inside a timelocked contract, using their own private keys. They then pair that locked Bitcoin with STX, the Stacks network’s native token, to earn yield denominated in BTC.
The targeted yield is approximately 3% APY, generated through protocol bonds and distributions from Stacks miners.
The upgrade passed with over 99% community approval, alongside SIP-044, which covers Clarity 6 improvements.
The deadline stakers cannot miss
Stakers must complete the restaking process before Bitcoin block 962,050 to continue receiving rewards under the new PoX-5 cycles. Missing that block is not a soft deadline. Rewards stop.
A public PoX-5 testnet has been running ahead of the mainnet activation. The first restaking cycles under the new system, along with a Genesis Bond, are scheduled for late August 2026.
The emissions story running alongside staking
PoX-5 also restores the STX coinbase reward to 1,000 STX per block, reversing a reduction to 500 STX that was implemented in April 2026. An initial temporary boost sets the coinbase reward at 1,500 STX per block to incentivize participation in the early cycles post-upgrade.
What this means for Bitcoin holders and STX investors
If PoX-5 delivers on its mechanical promises, it creates demand for STX as the pairing asset required to participate in staking. More BTC locked into the protocol means more demand for STX to pair with it.
The 3% APY target is sourced from miner distributions and protocol bonds. Whether miner distributions can consistently fund that rate at scale is the open question that the August Genesis Bond will begin to answer.
Investors watching STX should pay close attention to on-chain data in the days following block 960,230. Staking participation rates, the volume of BTC locked, and whether the Genesis Bond in August is oversubscribed or undersubscribed will all provide early signals about whether PoX-5 is attracting the long-term Bitcoin capital it was designed to pull in.