ChainCatcher report: The Bitcoin Layer-2 network Stacks has implemented its SIP-034 upgrade on mainnet, enabling up to a 30x increase in network throughput for certain DeFi applications. The upgrade improves efficiency by optimizing transaction processing limits—resetting only the exhausted individual resource constraints rather than all limits, thereby making better use of block capacity. Alex Huth, Product Lead at Stacks Labs, stated that this improvement most significantly benefits complex, read-intensive DeFi applications such as concentrated liquidity and advanced automated market maker (AMM) designs. While the upgrade does not directly alter the STX tokenomics, it is expected to indirectly increase transaction volume and fees as network activity grows.
Stacks Implements SIP-034 Upgrade to Boost Network Capacity by 30x
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Summary
Stacks has launched a network upgrade, SIP-034, on mainnet, increasing DeFi app throughput by up to 30x. The blockchain upgrade enhances block efficiency by resetting only the utilized resource limit, rather than all of them. Stacks Labs’ Alex Huth said the change benefits read-intensive applications such as AMMs and liquidity pools. Transaction volume and fees may increase as usage grows, though STX token economics remain unchanged.
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