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Blockstack (STX)

Decentralized computing network and app ecosystem

KEY METRICS [as at 25 Oct 2019]
TickerSTX
Initial Circ. Supply321,731,995 STX (15.70%)
Total Supply2,048,913,388 STX
Project Websitehttps://blockstack.org/

RECENT NEWS

  • Oct 2019: Conducted annual hard fork to release backwards-incompatible protocol fixes and upgrades
  • Oct 2019: Partnership with Blockchain.com to integrate STX token into its Blockchain Wallet and Blockchain Explorer, and to educate users about Web 3 apps
  • Sep 2019: Raised an addtional $23MM funding
  • Aug 2019: Partnership with Lambda to help students build software applications

PROJECT OVERVIEW

The Blockstack decentralized computing network aims to provide a friendly development environment for dApp developers, as well as universal IDs for users to easily use applications within the Blockstack ecosystem.

WHAT IS BLOCKSTACK?

Project Mission

Blockstack’s mission is to enable a fair and open internet that puts users in control of their data.

Project Value Proposition

  • Blockstack makes building decentralized apps as easy as cloud apps. Developers use simple libraries that abstract away the blockchain complexity, and there is no new coding language to learn.
  • Users get a universal login that works everywhere without passwords, and an encrypted home drive that allows them to take their data to any app they want.
  • Apps can run on user devices, and data sharing requires explicit user opt-in.

Key Highlights

  • Tunable Proofs: The Stacks blockchain uses a Tunable Proofs mechanism that combines the native Proof of Work consensus mechanism with the reuse of hashpower.
  • Highly Scalable Decentralized Storage: Gaia is a decentralized storage network built on Blockstack to enforce a user’s control over their data.
  • Ease of development: Blockstack makes Web 3 apps as easy to build as cloud apps. Developers use simple libraries to build apps that abstract away the blockchain complexity.
  • Developer Traction: Strong developer adoption so far with over 250 independent applications currently built on top of Blockstack’s technology, serving a variety of use cases.

Token Overview & Use Cases

Stack (STX), the native token of the Blockstack network, is consumed when users register blockchain-based identities and solidify new business models and protocols that can be used across all 250+ Blockstack apps. Stack tokens will also be consumed when users and developers interact with Clarity smart contracts.

The use cases intended for STX tokens include but are not limited to:

  • Registering Blockchain-Based Digital Assets: STX tokens are destroyed in order to register human readable, blockchain-based usernames, domains, and other types of digital assets.
  • Clarity Smart Contracts: STX tokens will be used as fuel for developers to publish contracts and users to execute these contracts.
  • Mining Rewards: STX tokens will be paid to miners that host Blockstack nodes and secure the network.

TOKEN SALE & ECONOMICS

KEY METRICS
Token Name STX
Token Type Native
Reg. D Sale Allocation ~30% of total token supply
Reg. D Sale Token Price $0.12
Reg. D Sale Date 11/01/2017 to 02/28/2018
Amount Raised Reg. D Sale $47.5 million USD
Reg. A & S Sales Allocation ~8% of total token supply
Reg. A Sale Price $0.30
Reg. S Sale Price $0.25
Reg. A Sale Dates 11/07/2019 to 09/09/2019
Reg. S Sale Dates 01/06/2019 to 09/09/2019
Amount Raised Reg. A & S Sales $23.0 million USD
Initial Circ. Supply321,731,995 STX (15.70%)
Total Supply2,048,913,388 STX

Token Supply Distribution

  • Long-term Treasury tokens comprise 5.37% of total token supply.
  • Short-term Treasury tokens comprise 14.31% of total token supply.
  • Founder Distribution tokens comprise 8.72% of total token supply.
  • Employee Distribution tokens comprise 3.64% of total token supply.
  • Equity Investor Distribution tokens comprise 5.30% of total token supply.
  • Reg D Token Sales tokens comprise 19.29% of total token supply.
  • Reg A & S Token Sales tokens comprise 5.86% of total token supply.
  • Reg A App Mining tokens comprise 1.95% of total token supply.
  • Mining Tokens tokens comprise 27.77% of total token supply.
  • App Mining Tokens tokens comprise 5.86% of total token supply.
  • User Incentives tokens comprise 1.95% of total token supply.

Regulation D Sale Overview

Conducted between 11/01/2017 and 02/28/2018 for 682,318,559 Stacks Tokens and raised a total of ~$47.5 million at ~$0.12 per token, selling 30% of total token supply.

Regulation A/S Sale Overview

Conducted on 11/07/2019 for 105,536,266 STX (~$23 million) at ~$0.25-0.30 per token, selling 8% of total token supply.


Token Governance & Use of Funds

Blockstack’s cryptocurrency holdings are held in cold-storage with a multi-signature private key set up aside from small reserves for operational purposes. Any transfer of cryptocurrency requires the use of at least two private keys that are separately controlled and secured by executive officers or directors of Blockstack PBC.

A similar policy is in place with respect to Blockstack’s holdings of 110 million Stacks Tokens in its own treasury. A single executive officer or director is unable, on his or her own, to transfer any of Blockstack’s cryptocurrency. Blockstack may also introduce a cold-storage setup where a subset of private keys is kept with a third-party custodial service. Blockstack has policies and procedures in place in case of death or disability on the part of one or more of these executive officers and directors that vest control of the private keys in Blockstack PBC’s Board of Directors, including the safekeeping of a backup private key.

As of October 2019, Blockstack has raised an additional $23MM in their 2019 token offering and plans to use those proceeds in the allocations below:

  • 30% Research and Development
  • 30% Marketing
  • 40% Operations & Cash Reserves

STX Token Distribution

STX Token Release Schedule

The following chart represents the number and breakdown of all STX that are to be released into circulation on a monthly basis. The Mining Tokens will continue to be released until August 2051.

ROADMAP & PROGRESS

Roadmap & Achievements

Roadmap & Achievements
PLANNED DATE MILESTONE ACTUAL DATE TIMING COMMENTS
2018: Q4 Release of App Mining pilot program 2018: Q4 On time Blog
2019: Q1 Launch of Stacks Blockchain v1 2018: Q4 Early Blog
2019: Q2 Opened the first SEC qualified token sale 2019: Q2 On time Blog
2019: Q3 Launch of Stacks V2 testnet 2019: Q3 On time Blog
2019: Q4 Distribute Stacks tokens to 2019 investors via hardfork 2019: Q4 On time Blog

Updated Roadmap

Q4 2019:
  • Alpha release of new Blockstack authenticator with improved UX and in-app transaction signing.
  • Distribute Stacks tokens to 2019 investors via hardfork.
  • Complete security audit on Stacks Blockchain V2.
  • Release beta for Clarity smart contract language.
Q1 2020
  • Complete Stacks V2 hardfork with new consensus algorithm, simple client verification, higher throughput, smart contracts, and app specific tokens.
  • Release of Clarity on mainnet allowing fully-featured smart contracts and in-app financial services.
  • Grow to first million users on the Blockstack network.
Q2 & Q3 2020:
  • Release of anonymous analytics API to report on app usage, growth, and retention.
  • Launch of iOS and Android apps for Blockstack authentication.
  • Launch ability to publish apps via Blockstack Naming System vs. DNS.
  • Release of Stacks Wallet V4 with faster, cheaper transactions.

Commercial Partnerships and Business Development Progress

  • Lambda School: Lambda is an education platform offering online classes taught by live instructors and one-on-one mentoring. This partnership aims to help students building blockchain software applications.
  • Blockchain.com: Partnership with Blockchain.com to integrate STX token into its Blockchain Wallet and Blockchain Explorer, and to educate users about Web 3 apps.
  • Spartan Group: The Spartan Group specializes in advising crypto start-ups in their expansion in the Asia region. Blockstack works closely with the Spartan Group to explore potential markets.

TEAM OVERVIEW

  • Muneeb Ali
    Co-founder, CEO

    Rreceived Ph.D. and Masters from Princeton University, specializing in distributed systems

  • Patrick Stanley
    Head of Growth

    Former BD Specialist at Earnest, founder and CEO of Ellison Sunglasses, and analyst at Typhon Capital Management

  • Jeff Domke
    Head of Product

    Former CPO and cofounder of Signal, Product Design Coach at Capital One, Founding Member of Design Founders

  • Diwaker Gupta
    Head of Engineering

    Former Eng. Lead for Machine Learning at Dropbox, Director of Eng. at Magintics

  • Jesse Soslow
    Head of Legal and Finance

    Former Senior Director of Operations at Everwise

  • Aaron Blankstein
    Engineering Partner

    Ph.D. and Masters in Computer Science from Princeton University

  • Hank Stoever
    Engineering Partner

  • Ludovic Galabru
    Engineering Partner

  • Ken Liao
    Engineering Partner

  • Matt Little
    Engineering Partner

  • Thomas Osmonson
    Engineering Partner

  • Reed Rosenbluth
    Engineering Partner

  • Jude Nelson
    Engineering Partner

TRADING DATA

Liquidity

The STX token is not actively trading on any exchanges, and will become available through Binance and Hashkey’s Institutional Exchange.

TECHNICAL OVERVIEW

Github Overview

Top Public Github Repositories

blockstack-core

The reference implementation of Blockstack

40 Contributors   8,707 Commits  
blockstack-browser

Implementation of the Blockstack Browser

60 Contributors   4,305 Commits  
blockstack.js

The Blockstack JavaScript library for identity, auth and storage

40 Contributors   1,718 Commits  
gaia

A decentralized high-performance storage system

10 Contributors   755 Commits  

PRODUCTS & METRICS

There are currently 271 independent projects built on top of Blockstack. A complete list can be seen here.

The top 10 independent applications by number of installations are as follows:

There are currently 155,669 names (identities) registered on top of Blockstack:

BLOCKCHAIN & NETWORK DATA

Blockstack uses a single-leader election protocol. To participate in the block race, each miner submits a “tunable proof” encoded as a transaction on an existing blockchain (the “burn chain”) that provably destroys some of the burn chain currency, and encodes some proof-of-work score. The amount work and currency destroyed are used to calculate a probability distribution over the set of next blocks. The more currency destroyed and/or more work put into the block, the higher the chance a miner has of winning. Along with their tunable proof, each miner submits the hash of their block, and a verifiable random function (“VRF”) output calculated over a shared plaintext (i.e. the result of the previous sortition).

The block winner is picked using cryptographic sortition. The VRF output from the last non-empty sortition is hashed with the sequence of burn chain block headers between its record on the burn chain and this new sortition, and the resulting hash is used to deterministically sample the block candidates with a probability proportional to their miners’ tunable proof scores. The winning block is independently and deterministically calculated by all miners, and the hash used to sample it serves as the input to the VRF in the next sortition.

The Stacks blockchain tolerates forks in order to survive failed miners or invalid blocks. To do so, it selects the fork with the most non-empty cryptographic sortitions. This ensures that the chain with the most time spent working on it is the longest chain.

There are two types of transactions in the Stacks chain, namely: anchored transactions and streamed transactions.

Anchored transactions are represented by the block hash that gets written to the burn chain. They have the same latency and confirmation time as the underlying burn chain blocks, and the same resistance to reorganization as the burn chain.

Streamed transactions are mined and appended to the anchored transactions as part of the same Stacks block for the duration of the block time. Streamed transactions are replicated in batches as microblocks, which are appended to the anchored block in real-time, or as soon as they arrive in the winning miner’s mempool. However, the lower latency comes at a security trade-off. The next miner may commit to an earlier microblock in the stream than the current miner realizes, causing some later microblocks to be accidentally orphaned. To encourage miners to include as many microblocks as possible, the transaction fees for streamed transactions are shared 40/60% between the current miner and next miner.

COMMUNITY DATA

Blockstack has generated strong developer adoption, especially in the US, Canadian, and European markets. To date there are over 250 independent applications built on top of Blockstack, serving a variety of use cases.

Blockstack has attracted its developer community through a combination of providing easy to understand education and tools, specific contests and events, and ongoing incentivization.

The next phase of community growth will focus on pulling in end users, with a stated goal of hitting 1 million users total on the network in Q1 2020. This will be facilitated by Blockstack’s partnership with Blockchain.com, as well as upcoming initiatives to be announced before the end of Q4 2019.

Current community growth strategies of Blockstack include:

  • The App Mining program to reward applications built on Blockstack.
  • Lambda School partnership to encourage students to build software applications on blockchain.
  • Blockchain.com partnership to bring Blockstack apps to over 40 million Blockchain Wallets.
  • Can’t Be Evil Contest Series.

Community and Social Channels

Blockstack community and social channels stats as of Oct 25, 2019

APPENDIX

The full Regulation A Offering Circular, with exhaustive information on Blockstack, can be found here.

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