Stacks miners batch users' transactions and receive fees from users (supply-side fees). Miners submit transactions to Bitcoin, paying a share of the transaction fees to Bitcoin miners.

Stacks is an smart contract platform for creating decentralized applications on Bitcoin (a blockchain). Stacks was founded by Muneeb Ali and Ryan Shea, and launched in 2021.

STX tokenholders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Stacks' investors include IOSG Ventures, The Spartan Group, Hashkey Exchange, etc.

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Stacks

# Stacks Token incentives Methodology

## 1. Overview

Token incentives measures the value of native STX assets that are minted and distributed to miners as block rewards on the Stacks network. Block production is incentivized via Proof-of-Transfer (PoX) mining, with minted assets serving as the primary emission mechanism for network security. All newly minted assets are directed to the reward pool, representing the protocol's cost to secure the network. The metric is analogous to stock-based compensation in traditional finance, reflecting the ongoing dilution of the asset supply to compensate security providers.

## 2. Data sources

- **Blockchain events**: Coinbase transactions and `mint` events of type `stx_asset` on Stacks, covering Stacks
- **External data**: End-of-day price feeds for the native STX asset

## 3. Step-by-step calculation

### Component A: Pre-SIP-031 reward reconstruction

- **Purpose**: Reconstruct coinbase rewards prior to the SIP-031 upgrade on July 30, 2025.
- **Logic**: Successful coinbase transactions are filtered from the transactions data for blocks prior to July 30, 2025. Because rewards were paid implicitly without emitting explicit mint events during this period, the total native token incentives are calculated by multiplying the count of unique blocks by the historical reward rate of 1,000 STX per block.
- **Key fields**: `block_number`, `block_timestamp`, `transaction_type`, `transaction_status`

### Component B: Post-SIP-031 reward extraction

- **Purpose**: Extract coinbase rewards from explicit mint events following the SIP-031 upgrade.
- **Logic**: For blocks on or after July 30, 2025, `mint` events of type `stx_asset` are parsed and filtered to include only those associated with successful coinbase transactions. The asset amounts from these events are summed and normalized by the asset's decimal precision to determine the daily native token incentives.
- **Key fields**: `asset_amount`, `event_type`, `asset_event_type`, `transaction_type`

### Component C: USD conversion and aggregation

- **Purpose**: Convert native token incentives to USD and aggregate daily.
- **Logic**: The native token incentives from both the pre-SIP-031 and post-SIP-031 periods are combined. The daily native totals are multiplied by end-of-day price feeds for the STX asset to calculate the final USD value. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `timestamp`, `token_incentives_native`, `price_usd`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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