> For the complete documentation index, see [llms.txt](https://docs.stackingdao.com/stackingdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stackingdao.com/stackingdao/the-stacking-dao-app/native-staking-with-btc-yield/native-stx-staking-basics.md).

# Native STX Staking Basics

Learn how to earn BTC rewards through Stacking DAO's Native STX staking pool.

Native STX staking lets you stake STX and earn BTC rewards without receiving a liquid token. Your STX never leaves your wallet: it is locked there by Stacks while it is staked. You choose how your rewards reach you: claim them yourself, have them sent to your Stacks wallet as sBTC, or have them sent as BTC to a Bitcoin address.

## At a glance

| Feature                | Details                                             |
| ---------------------- | --------------------------------------------------- |
| Deposit asset          | STX                                                 |
| Reward asset           | BTC, paid as sBTC or as BTC (your choice)           |
| Liquid token           | None                                                |
| Where your STX is held | In your own wallet, locked while staked             |
| Fee                    | 5% of rewards                                       |
| BTC payout option      | Available from 2,000 STX staked                     |
| Staking cycle          | About 2 weeks                                       |
| Starts earning         | From the start of the next cycle                    |
| Points                 | 1 Stacking DAO point per day for every 2 STX staked |

## Where the yield comes from

Stacks uses Proof of Transfer. Bitcoin miners commit BTC while competing to produce Stacks blocks. That BTC funds rewards for eligible staking positions.

## How rewards are paid

Rewards build up during each staking cycle and are distributed about twice per cycle (roughly once a week), rather than all at once at the end.

You choose one of three ways to receive them:

| Option             | What happens                                                                                                                                                                     | Good to know                                                                                                                                                                                                                                                                  |
| ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Claim yourself** | Rewards collect on the **Bitcoin Rewards** card in the app until you claim them. When you claim, you can take them as sBTC in your Stacks wallet or as BTC at a Bitcoin address. | Nothing is sent until you claim.                                                                                                                                                                                                                                              |
| **Sent as sBTC**   | Rewards are sent to your Stacks wallet automatically, as sBTC.                                                                                                                   | Sent once at least 1,000 sats have built up.                                                                                                                                                                                                                                  |
| **Sent as BTC**    | Rewards are sent automatically, as BTC, to the Bitcoin address you provide.                                                                                                      | Needs at least 2,000 STX staked. Sent once your rewards are at least 10 times the Bitcoin network fee, so the fee never takes more than 10% of a payout. That is 5,000 sats when Bitcoin fees are low, and more when the network is busy. The fee is taken from your rewards. |

<figure><img src="https://561486992-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpR2O34qESrn0kvfaMx99%2Fuploads%2FhixoY8MzjhfTJxKR7R7f%2Fnative-payout-settings-btc.png?alt=media&amp;token=24809303-f3a7-49c6-8c8c-6c4b1389bc25" alt=""><figcaption></figcaption></figure>

You pick an option when you stake, and you can change it at any time under **Payout settings** on your Native Staking position. Changing it is a transaction that you approve in your wallet. Once it confirms, the new option applies, including to rewards you have not claimed yet.

{% hint style="info" %}
With the two automatic options, rewards that have not reached the minimum yet wait on a **Native staking payout** tile under Active positions. You can click **Withdraw** on that tile at any time to receive them in your Stacks wallet as sBTC.
{% endhint %}

## Fee

Stacking DAO charges a 5% protocol fee on native staking rewards. It is taken from your rewards, never from your staked STX, and the APY shown in the app already includes it. The fee is set by Stacking DAO governance and is applied when rewards are claimed or sent to you. Stakes made before native staking V2 stay in the original Stacking DAO pool, which has 0% fee.

## Tracking your position

The **Staking Overview** section of the app shows how far the current cycle has progressed, when rewards are next distributed, the rewards generated so far in the cycle, and your estimated annual yield.

## Native staking compared with liquid staking

Native STX staking is designed for users who want BTC rewards without a liquid token. Users who need a transferable token, or who want to use their position across supported DeFi applications, can choose stSTX or stSTXbtc instead.

## If you staked before V2

{% hint style="info" %}
Stakes made before native staking V2 are in the original Stacking DAO pool, they keep earning there with a 0% fee, and you claim your rewards yourself. New deposits go to the V2 Pool, so adding STX moves your whole stake to V2. You can also move at any time with the Move to V2 button on your Native Staking card, to have rewards sent to you automatically. See [Depositing STX in Native Staking Pool](broken://pages/59a354f1ee6f8db0db1d058be4d072054320fdb7).
{% endhint %}

## Next steps

* [Depositing STX in Native Staking Pool](broken://pages/59a354f1ee6f8db0db1d058be4d072054320fdb7)
* [Withdrawing STX From Native Staking Pool](broken://pages/683f9cc9aa5122faa340cb85b6a0be662f4f9b55)
