Stacks: sBTC will be launched soon. Early users will receive sBTC incentives. How to participate

Author: 0xjs@Golden Finance

After the BTCL2 Stacks completed the Nakamoto upgrade on October 29, 2024, the next major event that the community will follow is the official launch of sBTC.

Stacks’s sBTC subsidiary L2 Labs recently announced that sBTC is expected to go live on the Mainnet on December 16, 2024.

The launch of sBTC is a key milestone for Decentralized Finance and Web3 users to move towards Decentralization and 1:1 BTC-backed assets. It unlocks a programmable BTC layer, allowing users to bridge BTC to productive applications for generating income, obtaining on-chain loans, and trading on Decentralization exchange.

Andre Serrano, Product Manager of Bitcoin L2 Labs, recently published an article introducing the release plan of sBTC.

Below is the sBTC Mainnet launch plan, timeline, and incentives

Stage Overview

Phase 0: Testnet

The Testnet phase focuses on rigorous testing of the core functions of sBTC, including deposit and signer operations. This phase ensures that the protocol reaches security and performance benchmarks before launching on the Mainnet. Currently, the sBTC team is actively recruiting signers and developers to strengthen the testing work and prepare for a seamless transition to the Mainnet.

Status: Completed (November 22, 2024)

Phase 1: Mainnet-BTC Deposit

The first phase introduces the functionality of user BTC deposits and minting sBTC, connecting BTC with Decentralized Finance. This Mainnet release will focus on guiding users and providing early access for builders. By starting only from deposits, the protocol limits its operational complexity and allows strict real-world testing of the underlying components under controlled conditions.

Early depositors will be eligible to participate in the sBTC reward program, providing incentives for sBTC adoption.

Expected Launch Date: December 16, 2024

Phase 2: Mainnet - BTC Withdrawal

In the second phase, sBTC withdrawal will be unlocked, allowing users to seamlessly convert sBTC to BTC. During this phase, the initial deposit limit will gradually increase to attract more users.

Expected schedule: 6-8 weeks after Phase 1

Phase 3: Open Signature Set + Optimization

At this stage, the sBTC signatory group will go beyond the initial 15 signatories elected by the community, aiming for Decentralization. The expansion of the signatory group will be a gradual process, with the ultimate goal of becoming a fully Decentralized, open, and permissionless signatory group over time.

Expected timetable: after the second phase

In-depth Study of Stage 1

Focus on following the deposit function of sBTC in Phase 1. This is the Mainnet version with a deposit limit, which will provide partners with important entry period. Users will be able to deposit their BTC into sBTC and qualify for rewards through the sBTC reward program.

BTC deposit limit

During this stage, there will be a deposit limit of 1,000 BTC implemented for controlled testing, while continuous security work will be strengthened during the protocol expansion. As the first phase progresses and transitions to the second phase, this limit will increase.

The deposit limit will be based on a first-come, first-served basis, which means that deposits will be accepted in the order of BTC Block on-chain until the limit is reached. Deposits received after the limit is reached will be returned to the user.

Reward: BTC in, BTC out

Unlike other incentive programs that rely on opaque point systems and offer alternative tokens as rewards, sBTC provides people with what they really want: BTC. Eligible deposits will receive sBTC rewards, which can be used in Decentralized Finance without the need for staking, locking, or other token derivatives. The program is designed to keep the user experience simple.

Signer: The cornerstone of sBTC

The security and reliability of the sBTC protocol depends on its set of signers, which is responsible for managing BTC custody and facilitating deposit and withdrawal operations.

The Stacks community has recently approved SIP-028, which defines the criteria for selecting signers based on technical expertise, reliability, performance, Decentralization, and other factors. In Phase 1, a group of initial 15 institutional signers has been selected to maintain simplicity and drop operational risk. As the protocol matures, this group will expand over time.

With the development of sBTC, the signer group will transition to a fully Decentralization model, further enhancing the flexibility of the protocol.

How early incentive users participate in sBTC

1. Access the sBTC dashboard (the application of sBTC). The dashboard is currently in the private testing phase and will be open to the public soon.

2. Connect to a non-custodial Wallet. Use Leather or Xverse Wallet, both designed for seamless integration with BTC and Stacks users.

3. Deposit BTC. Deposit BTC as instructed and receive sBTC in return.

4. Earn rewards. After the deposit is processed, go to the reward website (

5. Deploy sBTC in DeFi. Visit one of the featured sBTC applications to exchange, borrow, or lend using on-chain sBTC as collateral.