SIP-032: Improved stacking

sips/sip-x/sip-x-improved-stacking.md

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+# Preamble
+
+**SIP Number:** XXX
+
+**Title:** Improved Stacking Protocol
+
+**Authors:**
+
+- Friedger Müffke ([friedger@ryder.id](mailto:friedger@ryder.id))
+
+**Consideration:** Technical
+
+**Type:** Consensus
+
+**Status:** Draft
+
+**Created:** 2025-04-01
+
+**License:** BSD 2-Clause
+
+**Sign-off:**
+
+**Discussions-To:**
+
+- [Stacks Forum Discussions](https://forum.stacks.org/t/remove-cool-down-cycle-in-stacking/17899)
+
+# Abstract
+
+This SIP proposes a change to the different phases of the stacking process so that stackers can change
+their stacking settings without the so-called cooldown cycle. Furthermore, the relationship between stackers
+and signers is strengthened and stacking overall is simplified.
+
+The specification defines that
+
+- the beginning of the prepare phase is moved by 90 blocks towards the end of hte cycle.
+- the length of the prepare phase is reduced to 10 blocks.
+- that locked Stacks token ready for unlocking are unlocked at 90 blocks before the beginning of the prepare phase.
+- that delegated stacking tokens are locked immediately.
+- that stacking rewards are received by the Bitcoin address specified by the signer.
+- that solo stackers and delegating stackers have to follow the same flow.
+
+# Introduction
+
+## Glossary
+
+| Term               | Definition                                                                                                                                               |
+| ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------- |
+| **Cooldown Cycle** | The period of 1 stacking cycle where stackers cannot stack their STX tokens because their tokens are unlocked only at the beginning of a stacking cycle. |
+| **Signer**         |                                                                                                                                                          |
+| **Delegation**     |                                                                                                                                                          |
+| **PoX Contract**   |                                                                                                                                                          |
+
+## Problem Statement
+
+The current stacking process is has two different paths, one for solo stackers, one for delegated stackers,
+resulting in a more complex users experience and complex code. Furthermore, users cannot change their
+stacking settings (decrease amount, change PoX address, etc.) without an unlocked cycle where users cannot earn
+stacking rewards.
+
+The process is defined by a prepare phase of 100 bitcoin blocks that is used to find an anchor block
+for the next stacking cycle. Stackers must lock
+their Stacks tokens before the
+preapre phase, i.e. before the 2000th blocks of the current stacking cycle. Furthermore, Stacks
+tokens are locked for a locking period that always end at the beginning of a cycle, i.e. after the
+prepare phase. Therefore, the current implementation of Stacking includes a period where Stacks
+tokens are unlocked and cannot earn stacking rewards (Cooldown Cycle).
+
+The current PoX contract allows users to lock Stacks tokens during the prepare phase. This is too late for the next cycle
+and the tokens are locked without earning stacking rewards for one cycle.
+
+The cooldown cycle for unstacking from a pool presents a problem for network decentralization.
+As a stacker, when I delegate to a signer and that signer does not perform and gets low yield,
+I get penalized for switching. In today's model with cooldown cycles, users get double penalized
+if a validator does not perform. Even if there are penalties for signers not performing / being down,
+the switching costs are too high for users to switch (2 weeks worth of yield is a lot).
+
+## Proposed Solution
+
+A new PoX contract is proposed without
+the flow for solo stacking and moves responsibilities from pool operators to signers. It also
+defines the end of the locking period to be before the start of the stacking cycle.
+
+The user will be able to switch from one signer to another with a single contract call and without a cool down period.
+
+# Specification
+
+Applying these upgrades to the Stacks blockchain requires a consensus-breaking network upgrade,
+in this case, a hard fork. Like other such changes, this will require a new Stacks epoch.
+In this SIP, we will refer to this new epoch as Stacks 3.2.
+
+## Delegated Stacking only
+
+The following PoX contract functions shall be removed
+
+- stack-stx
+- stack-increase
+- stack-extend
+
+## Locking period
+
+Stacking transactions shall result in locking periods that end 100 blocks before the beginning of a stacking period. This includes
+
+- delegate-stack-stx
+- delegate-stack-extend
+
+The PoX contract has to be changed and return the unlock height as previous unlock height minus 100 blocks for mainnet. E.g.
+
+```
+(new-unlock-ht (- (reward-cycle-to-burn-height (+ u1 last-extend-cycle)) u100))
+```
+
+The unlocking process of the stacks node needs to be adapted accordingly.
+
+## Prepare phase
+
+The prepare phase shall start 10 blocks before the beginning of the stacking cycle and last for 10 blocks.
+
+The prepare cycle length defined in PoX contract has be changed to
+
+```
+(define-constant PREPARE_CYCLE_LENGTH (if is-in-mainnet u10 u5))
+```
+
+## Relationship Between Stackers and Signers
+
+The signature provided by a signers to a stackers shall use one of the following topics
+
+- delegate
+- delegate-increase
+- delegate-extend
+- agg-commit
+- agg-increase
+
+## Transition to PoX-5
+
+A new PoX contract requires that all stacked Stacks tokens are unlocked and Stackers need to lock their Stacks token again using the new PoX-5 contract. The process shall be similar to the previous upgrades of the PoX contract. PoX-4 contract shall be deactivated and PoX-5 contract shall be activated at the beginning of epoch 3.2 All locked Stacks tokens shall be unlocked automatically 1 block after the beginning of epoch 3.2.
+
+# Related Work
+
+The previous PoX process is described in [SIP 007](https://github.com/stacksgov/sips/blob/main/sips/sip-007/sip-007-stacking-consensus.md).
+
+# Activation
+
+This SIP requires are hard fork and shall be activated on Stacks 3.2 as defined by the SIP for epoch 3.2.
+
+## Appendix
+
+[1] https://github.com/stacks-network/stacks-core/issues/4912