Instant & Daily Yield with Stacking DAO
Last updated
Last updated
Stacking DAO’s architecture lets users earn yield immediately when minting stSTX or stSTXbtc—no 14-day wait, no idle cycles.
Rewards are distributed daily, boosting the utility of liquid staking tokens and making them more versatile across DeFi.
Let’s explore how this works.
Stacks’ consensus mechanism, Proof of Transfer (PoX), enables miners to bid BTC to win new Stacks blocks and earn newly minted STX along with transaction fees.
The BTC they commit is then distributed to STX stackers as a reward for supporting network security.
Depending on the Liquid Stacking DAO product selected, rewards are delivered in STX or sBTC. See the FAQ for full details on how rewards are distributed.
There are three main mechanics behind this design:
1. Who Generates Rewards
During Cycle X, rewards are produced by STX that’s already stacked via Stacking DAO.
Even if a user initiates the unstacking process, their STX remains locked and continues to earn until Cycle X ends.
New deposits made during Cycle X can't get stacked in that cycle but begin earning in Cycle X+1.
2. The Common Rewards Pool
All rewards generated during Cycle X can be treated as a shared rewards pool. This is what gets distributed daily to users in Cycle X+1.
3. Who Receives the Rewards
Rewards from Cycle X are distributed daily during Cycle X+1 and go to:
Ongoing stackers
New depositors (even if their STX isn’t yet actively stacked)
Users who begin unstacking during a cycle forfeit that cycle’s rewards, which are returned to the common pool and shared with remaining stackers.
Most stacking services delay rewards:
Deposits must wait for the next 2-week cycle to get stacked
Rewards are only paid at the end of a cycle
Users can’t access or move STX mid-cycle
Stacking DAO solves all this:
Daily yield starts immediately
Liquidity is preserved via stSTX and stSTXbtc
No waiting period to enter or exit
Immediate New depositors start earning rewards from day one—even before their STX is actively stacked.
Continuous Rewards are streamed daily, using the previous cycle’s yield (Cycle X → distributed over Cycle X+1).
This makes Stacking DAO the only stacking service that aligns rewards with real-time DeFi participation—no delay, no friction
