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‘SBTC. It Will Change Everything’ – $100 Million Stacks on Stacks

Some Highlights:

🏦 sBTC works by Stacks reading Bitcoin state & minting directly to wallets

📜 Uses Bitcoin-scripts to manage the locked BTC

🔥 Open group of incentivized signers to release the locked BTC upon sBTC burn

💰 STX is the collateral that provides the incentivization, signers risk losing it + their BTC rewards (from stacking) if they don't behave

🔒 100m capital currently locked on Stacks, available for sBTC

🪙 sBTC could end up becoming the main economy token on Stacks

Muneeb: "If exchanges that already support STX staking end up with 30% of the locked value, the peg becomes even more secure since there isn't just a capital-loss risk, there's now a reputational-loss risk."

(fyi on the above comment: @Sana_BTC plans to add its hat into the sBTC pool in the future, and we will of course act honestly & openly throughout, sBTC swaps will also be available in our wallet with the best UI/UX)

Worse case scenario is if 71% of sBTC signers collude to steal funds

However, Muneeb thinks this risk is low since the initial STX distribution was an SEC approved offering, hence: KYC

Bad for privacy Great for theft-avoidance (long run: the signers pool will be more diverse)

Biggest concern around this system is software bugs. This is mitigated with the fact that the majority of money is locked up in a simple Bitcoin script with low attack possibility.

Using @clarity_lang on the Stacks side helps as well since it's predictable & secure.

The other hard point is securing enough locked up value. Getting to billions of dollars TVL is a "chicken & egg problem" according to Muneeb, but once achieved we can expect the system to operate extremely smoothly & self propel higher.

Muneeb: "The economy here is BTC. It will flip.

This is an answer to the stale "shitcoin" debate.

Stacks will no longer just be "next to" Bitcoin. It will be fully integrated, engaged, expressive, and useful.

Stacks 2.1 = Bitcoin 2.0

🔜🪄

This post is based on this twitter thread.

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