How does Stacks (STX) staking and reward distribution work with Kiln?

Understanding Stacks Staking Cycles

Stacks operates on a two-week "Stacking" cycle. Users must stake their STX before the start of a cycle to participate in that cycle's rewards. If you miss the current cycle, you'll need to wait for the next one to begin.

Staking and Delegation Process

When you delegate your STX to Kiln's validator:

• Your stake becomes active for the next full cycle after delegation.

• Rewards are proportional to your stake in the total pool for that cycle. For example, if you delegate 100 STX out of a total 1,000 STX in the pool, you'll receive 10% of the rewards for that cycle.

Reward Distribution

Unlike some other Proof of Stake chains, Stacks does not automatically distribute rewards to delegators. Kiln manages this process:

• We monitor the amount delegated to our validator for each cycle.

• We calculate each customer's share of rewards based on their stake.

• Rewards are then distributed to our customers.

Important Notes for Customers

• This service is primarily designed for large B2B customers. Due to the high operational cost of managing STX staking, we ask for a minimum staking position of 100k STX per customer.

• Please communicate with us when you stake or unstake to help us monitor your active stake accurately.

• You can learn more on Stacks staking mechanics in our docs.