Key Points
- The Stacks community has agreed to the Nakamoto Upgrade, causing an increase in the token’s price and Total Value Locked (TVL).
- The upgrade is expected to improve transaction speeds and decrease the Maximum Extractable Value (MEV) linked with Bitcoin transactions.
The Stacks community has recently given the green light to the Nakamoto Upgrade. This decision was made following a voting process in which no STX holders were opposed.
Non-STX holders were also allowed to participate in the vote, with a whopping 99.98% voting in favor of the upgrade.
Impact on STX Value
Following the announcement of the voting results, the value of STX saw a significant increase. At the time of writing, the price of STX had risen by 17.34% in the last 24 hours, outperforming Bitcoin.
The Nakamoto Upgrade was proposed by Stacks as a means to improve the network. Potential improvements include faster Bitcoin block times and a reduction in the Maximum Extractable Value (MEV) associated with Bitcoin transactions.
The MEV represents the maximum potential profit that can be made by a miner or validator through transaction manipulation. The upgrade is expected to reduce such occurrences, allowing miners and validators to receive their standard rewards without issue.
Impact on Total Value Locked
The price of STX was not the only metric impacted by the upgrade. The Total Value Locked (TVL) in Stacks also saw a significant increase. According to data from DeFiLlama, the TVL reached an all-time high of $156.52 million following the announcement.
The increase in TVL indicates a perceived increase in the security and value of the network. It also suggests a growing trust among market participants that Stacks will yield greater returns.
Stacks co-creator Muneeb Ali has stated that the upgrade will enable Stacks users to earn more BTC yield and create a “positive economic loop” due to increased network usage.
The upgrade has sparked discussions on various social platforms, with comparisons being drawn between Stacks, Ethereum, and Solana. The improved transaction speed, security, and decentralization that the Nakamoto Upgrade offers could potentially boost Stacks’ adoption.
Token Terminal has reported an increase in core developers and code commits on Stacks, suggesting that developers are bullish on the Layer-2 network and that new features may be released soon.
Stacks has provided a timeline for the upgrade, with the Testnet expected to go live on the 25th of March and the Mainnet activation scheduled between the 15th and 29th of May.
