Stacks FAQ

Where can I buy Stacks tokens?How do I buy Stacks tokens?How long do I have to buy Stacks tokens?How much do Stacks tokens cost?How do I pay for Stacks tokens?Can I fund my purchase using an online exchange wallet?Is there a minimum purchase amount?Is there a maximum purchase amount?Why do I have to verify my identity?How do I verify that I am an accredited investor?If I am not a U.S. person, can I buy Stacks tokens?Are any U.S. states excluded from the offering?Why can’t residents in Texas, North Dakota, Nebraska and Arizona purchase in the offering?What if my payment does not clear before the offering ends?What is the order of priority if the offering is oversubscribed?When do I receive my Stacks tokens?I didn’t complete the voucher registration process. Can I still redeem my voucher?Can I redeem more than one voucher?Can I transfer or sell my Stacks voucher?Is there an exchange where I can buy and sell Stacks tokens?Where will the Stacks token trade?Can I sell or transfer Stacks tokens directly to someone else?What types of transfer or time locks are Stacks tokens subject to?What types of transfer or time locks apply to the current and future sales of Stacks tokens?How will mining affect the supply of Stacks tokens?What will the supply of Stacks tokens be in 2050?How do I check the status of my previously purchased Stacks tokens?I have a tax question about my Stacks tokens. Whom should I talk to?How can I edit my stacks wallet address?How can I change my currency?How much money has Blockstack raised?What has been the recent traction on the network?How were tokens distributed to early investors?What is the current circulating supply of Stacks?How do I get help about the Stacks token from a person?Important Disclaimer
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Where can I buy Stacks tokens?

Stacks tokens will be available for purchase at stackstoken.com commencing on July 11, 2019 at 11:00 a.m. Eastern Daylight Time.

How do I buy Stacks tokens?

Go to stackstoken.com and follow the instructions for submitting your purchase request.

How long do I have to buy Stacks tokens?

The Stacks token offering commences on July 11, 2019, and will continue for 60 calendar days until September 9, 2019. We may terminate the offering at an earlier time if the general offering has been fully subscribed and the voucher program is either fully subscribed or we have determined that no additional voucher holders are expected to subscribe to the offering.

How much do Stacks tokens cost?

We are offering Stacks tokens at $0.30 per token to the general public in the general offering and $0.12 per token to voucher-holders in the voucher program.

How do I pay for Stacks tokens?

You may purchase Stacks tokens using either U.S. dollars, Bitcoin, or Ether.

Can I fund my purchase using an online exchange wallet?

We recommend using a wallet for which you hold the private keys to fund your purchase, but you can use an online exchange wallet as well. In either case, your return address must be tied to a wallet for which you hold the private keys.

The Stacks Wallet is the official cryptocurrency wallet supported by the Stacks token team. You can download it at https://wallet.blockstack.org/.

Is there a minimum purchase amount?

The purchase minimum is $100. This minimum may be waived at our discretion.

Is there a maximum purchase amount?

If you are an accredited investor, there is no maximum purchase amount. If you are not an accredited investor, your total purchase amount may not exceed 10% of the greater of your annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons).

If you are planning to purchase more than $200,000 worth of Stacks tokens, our investor relations team would like to assist you personally. You may proceed with purchasing up to $200,000 via stackstoken.com and work with our investor relations team for any additional purchases above that amount. Please email [email protected] and we’ll get in touch with you.

Voucher holders may purchase up to a maximum of $3,000 worth of Stacks tokens through the voucher program, or 25,000 Stacks tokens, at $0.12 per token. Voucher holders may purchase additional tokens through the general offering at $0.30 per token.

Why do I have to verify my identity?

We are required to verify your identity to comply with know-your-customer and anti-money laundering laws.

How do I verify that I am an accredited investor?

If you wish to purchase more than 10% of the greater of your annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons), you will be asked to verify your accredited investor status at stackstoken.com by submitting documentary evidence of your annual income or net worth.

If I am not a U.S. person, can I buy Stacks tokens?

Residents from Canada and Japan are not eligible to participate. In addition, persons subject to the U.S. Office of Foreign Asset Control’s sanctions programs are not eligible to participate.

You should consult an attorney in your country to determine whether your country’s laws prohibit the sale of Stacks tokens to you.

Are any U.S. states excluded from the offering?

We will not offer Stacks tokens for sale in the cash offering within Arizona, Nebraska, North Dakota, or Texas or to any resident of those states.

Why can’t residents in Texas, North Dakota, Nebraska and Arizona purchase in the offering?

Blockstack has aimed to offer the Stacks Tokens as broadly as possible. However, we have currently excluded from the cash offering certain states, including Texas, North Dakota, Arizona and Nebraska, that assert that issuers like Blockstack, who sell their own securities without employing a registered broker-dealer, need to register as dealers with the state in order to sell their own securities. These states also maintain that their ability to require this registration is not preempted by the federal securities laws. While we do not necessarily agree with these states’ positions on these matters, proceeding with the cash offering in these states without complying with their dealer-registration requirements might subject us to litigation risk, and we are not able to comply with these dealer-registration requirements at this time. We are continuing to examine ways in which we may be able to comply with the dealer-registration requirements or otherwise offer Stacks Tokens in these states. We will evaluate participation by developers in the App Mining program on a case-by-case basis to review if there is an applicable exemption under state law for each developer, but otherwise developers from these states will also be excluded from the App Mining program.

What if my payment does not clear before the offering ends?

Your purchase is not complete until your payment is received and we accept your subscription. Priority is first-come, first-serve, based on receipt of payment. If your payment is late, your subscription may be rejected and your payment returned. We encourage you to plan accordingly, especially if you use a slower form of payment, such as ACH.

What is the order of priority if the offering is oversubscribed?

General offering: Priority in the general sale is first-come, first-serve, based on receipt of payment. We have sole discretion to reject any purchase request for any reason. We encourage you to plan accordingly, especially if you use a slower form of payment, such as ACH.

Voucher program: Voucher holders who pre-registered before the May 28, 2019 voucher pre-registration deadline have priority for up the amount of Stacks tokens at the $0.12 per token price that they indicated during pre-registration. Any number of tokens requested above the pre-registration amount is not guaranteed and the purchase amount for those tokens may be refunded. Voucher holders may purchase additional tokens at the general offering price of $0.30 per token. Voucher holders who missed the deadline are placed on a waitlist and given priority on a first-come, first-serve basis if there is any remaining availability.

When do I receive my Stacks tokens?

We anticipate the hard fork distribution of tokens to take place approximately 30 days after the end of the cash offering term. We may extend the hard fork distribution by an additional 30 days if needed. The sale is open for 60 days by default. As described in the offering circular, we will give an update as a public notice, filed as a Form 1-U with the SEC, as certain conditions are met. We will also give public notice when the sale is closed.

I didn’t complete the voucher registration process. Can I still redeem my voucher?

Voucher holders who missed the May 28, 2019 voucher pre-registration deadline will only be allowed to redeem their voucher in Blockstack's discretion on a first-come, first-serve basis and only if there are sufficient tokens remaining in the voucher program. You may still purchase Stacks tokens at a price of $0.30 per token available in the general offering. If you have any questions, please contact [email protected]

Can I redeem more than one voucher?

No. Vouchers are limited to one per person so that the largest possible number of purchasers have a chance to participate.

Can I transfer or sell my Stacks voucher?

Stacks vouchers are non-transferrable and may not be bought, sold, or gifted. Only the original person or entity that registered for, and whose name is printed on, the voucher may redeem it.

Is there an exchange where I can buy and sell Stacks tokens?

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.

Where will the Stacks token trade?

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.

Can I sell or transfer Stacks tokens directly to someone else?

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 U.S. person or entity, as we cannot give you legal or regulatory advice.

What types of transfer or time locks are Stacks tokens subject to?

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.

What types of transfer or time locks apply to the current and future sales of Stacks tokens?

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-U.S. 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.

How will mining affect the supply of Stacks tokens?

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.

What will the supply of Stacks tokens be in 2050?

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.

How do I check the status of my previously purchased Stacks tokens?

You may check the status of previously purchased Stacks tokens at the Blockstack Explorer. Additional wallet-related information is available here.

I have a tax question about my Stacks tokens. Whom should I talk to?

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.

How can I edit my stacks wallet address?

Log into your account at sale.stackstoken.com. From this screen, you should be able to edit your Stacks address.

How can I change my currency?

You can invest with US dollars, Bitcoin, or Ether. You will be asked to confirm the type of currency when you initiate your payment after the sale opens. You will not be able to change the currency once you have submitted payment.

How much money has Blockstack raised?

Blockstack PBC has raised $5.1M in equity investments and $47.5M in the 2017 token offering. The last equity financing was the Series A round in Fall 2016.

Traditionally, venture-capital backed startups target around 12 to 18 months of runway after a new round of financing. As of July 2019, Blockstack PBC has 12+ months of runway at current burn rates. This runway projection (a) does not include funds contingent on achieving Milestone 2, (b) discounts the crypto holdings of Blockstack PBC, and (c) does not include any funds raised in the current Reg A and Reg S offerings.

Further, Blockstack PBC has a total of 110M STX in a long-term treasury. In addition, after completion of the 2019 offerings, approximately 231 million tokens from the genesis block will remain unallocated; the future use of these ~231 million tokens is under the discretion of Blockstack PBC.

Our audited financials are available in our offering circular.

We expanded our team from 19 employees in January 2019 to 25 in July 2019 and we have several open positions.

What has been the recent traction on the network?

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, and from 86 to 165 by the time of our SEC offering qualification in July 2019.

The Blockstack network has 115,780 registered user accounts as of July 2019 and Blockstack PBC plans to start focusing on user acquisition as we move from the developer traction phase to user engagement phase.

How were tokens distributed to early investors?

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 PBC 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.

What is the current circulating supply of Stacks?

Currently, 866,827,880 tokens of the 1.32B genesis block have been distributed. As of June 10, 2019 approximately 229,229,868 of those 866,827,880 distributed tokens have been released from their time locks. The remainder continue to be subject to time locks that release approximately monthly over approximately two, three or four year periods. If all tokens offered in the Reg A and concurrent Reg S offerings are sold, allocated and distributed, the total number of Stacks tokens distributed will be 1,089,161,213. For more details, please refer to the public filing with the SEC in our offering circular.

How do I get help about the Stacks token from a person?

For questions or help regarding the Stacks token, you can contact us at [email protected].

Important Disclaimer

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. 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.

Forward-looking statements

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 Securities and Exchange Commission, 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.

What is a seed phrase?

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 lock box 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.

How do I keep my tokens secure?

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 e-mail, 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.

What is a public Stacks Wallet address?

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 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.

Can I use another software wallet with Stacks?

Currently, the only software wallet that supports Stacks is the Blockstack Wallet software.

Can I use the older, version 1 Blockstack Wallet?

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.

Can I send Bitcoin to my Stacks wallet?

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".

How do I check my STX balance

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.

How do I get help with my wallet from a person?

For questions or help regarding the Stacks token, you can contact us at [email protected].

Important disclaimer

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.

Forward-looking statements

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.