Modular BTC Layer 2 blockchain launch platform UTXO Stack announced its official transition into the Lightning Network Staking Layer. This shift aims to improve liquidity and yield through a decentralized staking protocol, facilitating broader adoption of the Lightning Network.

As part of its transition, UTXO Stack plans to implement token incentives to boost liquidity on the Lightning Network across both Bitcoin and CKB. These incentives aim to improve the efficiency and scalability of the Lightning Network. UTXO Stack has indicated that more information regarding the token incentives will be provided soon.

According to the project, this transition aligns with its goal of creating a next-generation value network while staying true to Satoshi Nakamoto’s vision of a Peer-to-Peer Electronic Cash System. By offering liquidity incentives, the initiative aims to expand the reach of the Lightning Network and contribute to a more scalable Bitcoin ecosystem.

UTXO Stack Announces Transition to Lightning Network Staking Layer

We are excited to announce that UTXO Stack @utxostack is officially transforming into the Lightning Network Staking Layer. By providing an improved liquidity and yield model through decentralized staking…

— cipher (@crypcipher) September 13, 2024

UTXO Stack Partners With Babylon To Launch Bitcoin UTXO Extension Solution  

UTXO Stack is built on Bitcoin’s native UTXO model, guaranteeing smooth integration and compatibility with the Bitcoin blockchain. This design allows builders to craft high-performance parallel blockchains, enabling near-unlimited scalability not compromising network security, thereby bolstering the development of the Bitcoin ecosystem.

With UTXO Stack, launching BTC Layer 2 solutions capable of Turing Complete contracts becomes easier, while the security of the newly launched blockchains is maintained via staking BTC, CKB, along with other Bitcoin Layer 1 assets.

Recently, UTXO Stack partnered with Babylon to launch the first Bitcoin Layer 2 scalability solution based on the native UTXO model. This initiative launched a Proof-of-Stake (PoS) data availability (DA) blockchain to support Layer 2 networks built on UTXO Stack, with Babylon providing security for these PoS Layer 2 networks and DA blockchains.

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