Blockchain transactions take time. Once Stacks are sent to you, you see a PENDING transaction, which means the transaction is still being recorded by the blockchain. Your balance will not change until the transaction is recorded. It may be minutes or hours before the transaction is recorded in the blockchain.
When the transaction is complete, you can see a receipt for the transaction in your Stacks Wallet. The PENDING marker goes away once the funds are recorded on the blockchain. Then, at this point, the balance in your Stacks Wallet software should reflect the completed transaction.
We're currently in discussions with international (non-US) exchanges for potential listings of Stacks (STX) tokens in Oct or later. US persons will not be able to trade on such initial international exchanges.
For US investors, there is currently no authorized exchange or alternative trading system (ATS) for buying and selling Stacks tokens, and we cannot comment on when an exchange or ATS might list Stacks tokens at this time. Please keep an eye out for updates at stackstoken.com. If you see Stacks listed on an exchange, please let us know at [email protected], as the listing may be illegal or a scam.
There is currently no authorized exchange or alternative trading system (ATS) for buying and selling Stacks tokens, and we cannot comment on when an exchange or ATS might list Stacks tokens at this time. Please keep an eye out for updates at stackstoken.com. If you see Stacks listed on an exchange, please let us know at [email protected], as the listing may be illegal or a scam.
It may be possible to sell or transfer Stacks directly to another person in a peer-to-peer transaction. We recommend that you consult an attorney before engaging in such a transaction, especially if buying from or selling to a US person or entity, as we cannot give you legal or regulatory advice.
Previous and future sales of Stacks tokens are subject to two potential types of locks on use and transfer: a
transfer lock and a
time lock. Transfer locks are implemented where the tokens sold are considered sales of “restricted securities” under the Securities Act of 1933. Tokens subject to transfer locks are non-transferable on the Blockstack network until a one-year holding period following their sale has lapsed. A token can be burned on the network while subject to a transfer lock (provided it is not subject to a time lock), but otherwise is non-transferable.
Separately, tokens on the Blockstack network can be subject to a time lock, a general restriction that prevents a Stacks token from being used for any purpose on the Blockstack network, such that the Stacks token cannot be burned or transferred. Time locks operate such that Stacks tokens unlock in equal increments each time a pre-set number of blocks is processed on the blockchain.
2019 Regulation A offering: Stacks tokens sold pursuant to our Regulation A offering are subject to an approximately two-year time lock from the date of the hard fork that distributes the tokens. 1/24th of the amount of tokens purchased will be released from this time lock on the date of distribution of the tokens, and an additional 1/24th will be released approximately every month. These tokens will not be subject to a transfer lock.
2019 Regulation S offering: Stacks tokens sold pursuant to our Regulation S offering to non-US institutional investors are subject to a one-year transfer lock from the date of sale and an approximately two-year time lock that unlocks on an approximately monthly basis from the date of the hard fork that distributes the tokens.
2017 Accredited Investor Sale: Stacks tokens sold pursuant to our Regulation D offering to accredited investors in 2017 are subject to an approximately two-year time lock that unlocks on an approximately monthly basis from the date of the genesis block, except for 50,000,000 of those tokens, which are subject to an approximately four-year time lock. The tokens were previously subject to a one-year transfer lock, which has expired.
2017 Founder Sale & Equity Investor Sale: Stacks tokens sold to founders and certain stockholders of Blockstack PBC in 2017 are subject to an approximately three-year time lock that unlocks on an approximately monthly basis from the date of the genesis block.
Mining is not currently available on the Blockstack network. As a result, we expect the supply of 1.32 billion Stacks tokens created in the genesis block to decline over time due to burning.
We hope to introduce mining in or around 2020, which may increase the token supply through the creation of tokens as mining rewards. We anticipate that the number of tokens added will be governed by a principle that we call
adaptive mint and burn, which provides that a minimum number of new Stacks tokens will be created as the mining reward for each block added to the blockchain, and a number of additional tokens may also be included in the mining reward to replace tokens that have been recently burned and thereby removed from the token supply, which additional tokens we refer to as
replacement tokens. The number of tokens recently burned would be calculated using a measurement algorithm that remains to be determined.
Unless the number of tokens burned exceeds the maximum number of additional tokens that can be created, or the measurement algorithm fails to accurately measure the rate at which tokens are being burned, adaptive mint and burn will result in a net number of tokens being added to the token supply each year equal to the minimum number of tokens created — which would be equal to approximately 26,298,000 tokens each year for the first five years, 21,038,400 tokens each year over the next five years, and then 15,778,800 tokens each year after that. If the token-burning activity on the network consistently exceeds the cap on token creation, however, more tokens may be burned than are replaced by the replacement tokens, and this could result in less net tokens being added to the network over time than anticipated.
In addition, the blockchain would further add to the token supply by creating 12 million new Stacks tokens a year for App Mining, and 25 million tokens and 15 million tokens the first and second year after the introduction of mining, respectively, for user incentive programs. We are considering whether these caps on the number of additional tokens should be removed at some time in the future.
For more details, please see
Description of the Stacks Tokens—Creation of new Stacks Tokens in our offering circular.
There is no pre-set limit on the number of Stacks tokens that will be released over time. We anticipate that approximately 2,048,036,800 Stacks tokens will be in circulation in the year 2050 based on the assumption that mining is introduced in 2020, and fewer tokens than this estimate may be in circulation. For more details, please see
Description of the Stacks Tokens—Creation of new Stacks Tokens in our offering circular.
If you have a tax question about your Stacks tokens, we recommend you speak to an accountant or tax lawyer. If you participated in the 2017 token sale through the Blockstack Token Funds, we’ll provide you with the necessary tax reporting forms by the required deadlines, but in general, we cannot give you tax advice.
Blockstack PBC has raised ~$75m+ from equity investments and token offerings--approximately $23.2m from two token offerings in 2019, $47.5m from a token offering in 2017, and $5.1m in equity investments.
Traditionally, venture-capital-backed startups target around 12 to 18 months of runway after a new round of financing. As of October 2019, Blockstack PBC has a projected runway until at least the end of 2021 at current burn rates.
Our audited financials are available in our offering circular.
Blockstack PBC moved from the R&D phase to the infrastructure building phase in 2017 (upon closing of the Series A equity investment). Blockstack PBC successfully completed the launch of the Stacks blockchain in Q4 2018, meeting Milestone 1.
Since Q4 2018, we’ve been in the developer traction phase. The number of independent applications built on the network increased from 17 to 46 in Q4 2018, from 46 to 86 in Q1 2019, from 86 to 165 in Q2 2019, to 165 to 265+ apps in Q3 2019. The Blockstack network has 115,780 registered user accounts as of July 2019, and Blockstack PBC has increased focus on user acquisition during the transition from the developer traction phase to user engagement phase.
Accredited Investors and funds in the 2017 Reg D token offering purchased tokens at a $0.12 price. Blockstack PBC raised $47.5M in this offering.
Holders of Blockstack’s Series A convertible preferred stock—who had invested a total of $5.1 million as of late 2016 and funded Blockstack’s early growth and development before the decision to create a token, or the drafting or publication of any white papers—were also provided an opportunity to purchase tokens at a nominal price per token before the 2017 Reg D offering. This opportunity to participate at a nominal price was given in return for their early support and in proportion to their equity ownership, and it was based on their reasonable expectation as early investors that they would receive tokens if Blockstack ever decided to create a digital token.
These tokens are subject to a three-year time lock, commencing upon the introduction of the genesis block to the Blockstack network in November 2018. The tokens for founders and employees are also subject to a three-year time lock starting November 2018.
Further, affiliates of Blockstack PB,C including Union Square Ventures, Muneeb Ali, and Ryan Shea — three of the largest holders of Stacks tokens — have additional restrictions on selling tokens on the open markets.
When you create a wallet address, you also create a seed phrase. With one significant exception, a seed phrase is similar to a banking pin in that it gives you access to your wallet and your token allocation. Unlike a pin, if you lose your seed phrase, you can never access your wallet or your token allocation ever again.
Warning: Losing a seed phrase is final and destructive. Blockstack does not keep a copy of your seed. Blockstack cannot give you a new seed, get your access to your wallet, or return your tokens if you lose your seed phrase.
Keep your seed phrase secret. Just as with a banking pin, anyone that knows or steals your seed phrase can access your allocation.
You should write your seed phrase down and store the paper you write on in at least two secure locations. A safe or lockbox is a good location. You can also store it online in an encrypted password manager such as 1Password. You should never simply store a seed phrase in Apple Cloud or Dropbox.
Your seed phrase is a 24-word combination that was given to you during the setup of your Stacks Wallet. Unfortunately, as noted during the Stacks Wallet setup, there is no way we can recover your 24-word seed phrase for you.
The safety of your Stacks tokens is extremely important to us. To help ensure that you complete the process of receiving your tokens correctly and securely, please read the following guidelines:
Website Safety: When inputting data on a website or verifying the presence of data on a website, it is essential that you confirm that the URL is correct and that your browser is using HTTPS.
Email Safety: Blockstack will never ask for your personal identifying information over email, or call you directly. When we ask verifying questions, we will only do so when you call us to confirm your identity. We will never ask you for money or your Seed Phrase (private key).
If you have large token holdings, make sure you take advantage of custodial services. A wallet does not provide the security of a custodial service.
The Stacks Wallet is available for download at wallet.blockstack.org.
During the initial grant process, investors submitted a public Stacks Wallet address to Blockstack. This is a string of letters and numbers starting with an ‘SP’ or SM’; for example,
SP017AUV5YRM7HT3TSQXJF7FCCYXETAB276BQ6XY is a wallet address.
If you purchased Stacks tokens through stackstoken.com using CoinList, you can find your address at CoinList. If you submitted your Stacks address directly to Blockstack, you can either use the
Restore from Seed Phrase feature on the Stacks Wallet or contact us at [email protected] for help.
Currently, the only software wallet that supports Stacks is the Blockstack Wallet software.
Version 1 of the Blockstack Wallet software was a read-only wallet. To view Stacks balances, send or receive Stacks you need to use the latest version 3 wallet. You can use the seed phrase you created with the old wallet with the new version.
No, you cannot send Bitcoin to a Stacks address. You can only add Bitcoin as fuel to the wallet. Please follow the instructions for adding "gas".
The Securities and Exchange Commission (SEC) has qualified the offering statement that we have filed with the SEC. The information in that offering statement is more complete than the information we are providing now, and could differ in important ways. You must read the documents filed with the SEC before investing. The offering is being made only by means of its offering statement. This document shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
An indication of interest involves no obligation or commitment of any kind. Any person interested in investing in any offering of Stacks Tokens should review our disclosures and the publicly filed offering statement and the final offering circular that is part of that offering statement here. Blockstack is not registered, licensed or supervised as a broker dealer or investment adviser by the SEC, the Financial Industry Regulatory Authority (FINRA) or any other financial regulatory authority or licensed to provide any financial advice or services.
This communication contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “believe,” or other comparable terminology. Forward-looking statements in this document include, but are not limited to, statements about our plans for developing the platform and future utility for the Stacks Token, our Reg A+ offering and launch of our network, and collaborations and partnerships. These statements involve risks, uncertainties, assumptions and other factors that may cause actual results or performance to be materially different. More information on the factors, risks and uncertainties that could cause or contribute to such differences is included in our filings with the SEC, including in the “Risk Factors” and “Management’s Discussion & Analysis” sections of our offering statement on Form 1-A. We cannot assure you that the forward-looking statements will prove to be accurate. These forward-looking statements speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.
*This estimate is based on certain assumptions. For more details, please see our discussion in “Description of the Stacks Tokens—Creation of new Stacks Tokens” in our offering circular at www.stackstoken.com/circular.