The Bitcoin Layer 2 network Stacks implements the SIP-034 upgrade to enhance network processing capacity

The Bitcoin Layer 2 network Stacks announced that its SIP-034 upgrade has been implemented on the mainnet, which can increase the network processing capacity of some DeFi applications by up to 30 times.

The upgrade optimizes transaction processing limits by resetting only the exhausted single resource limit instead of all limits, thereby utilizing block capacity more efficiently. Alex Huth, the product lead at Stacks Labs, stated that this improvement has the greatest impact on complex and read-intensive DeFi applications, such as concentrated liquidity and advanced automated market maker (AMM) designs. Although the upgrade does not directly change the STX token economics, it is expected to indirectly increase transactions and fees as network activity increases.