Stacks Foundation Will Soon Put Those 100M Tokens to Work

The blockchain governance foundation is stacking stacks.

AccessTimeIconAug 12, 2020 at 9:07 p.m. UTC
Updated Sep 14, 2021 at 9:43 a.m. UTC

The Stacks Foundation plans to soon begin awarding grants to Blockstack blockchain projects with its fresh reserve of 100 million Stacks tokens.

  • Grants "will be awarded on a rolling basis," to developers and researchers iterating on Stacks blockchain 2.0, according to a foundation spokesperson, who said more info on the program will be coming soon.
  • Blockstack PBC committed to transferring its Stacks reserves, intellectual property and a low-interest $950,000 operational loan to the Stacks governance foundation, according to a Monday Securities and Exchange Commission filing.
  • Such a massive value transfer - the 100 million tokens were worth over $26 million at press time - will have the secondary effect of decentralizing Blockstack's network.
  • Relinquishing control of 100 million STX could help Blockstack's argument that Stacks is not a security and possibly lead to an eventual token listing on U.S. exchanges, according to Decrypt.
  • Even so, Blockstack treats its Stacks token as a security by taking steps like filing updates with the SEC.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC