Bitcoin Layer 2 network Stacks implements SIP-034 upgrade to improve network processing capabilities

According to Mars Finance, Stacks, the Bitcoin Layer 2 network, announced that its SIP-034 upgrade has been implemented on the mainnet, potentially increasing network processing capacity for some DeFi applications by up to 30 times. The upgrade optimizes transaction processing limits by resetting only the single resource limit that has been exhausted, rather than all limits, thus making more efficient use of block capacity. Alex Huth, Product Lead at Stacks Labs, stated that this improvement will have the greatest impact on complex and read-intensive DeFi applications, such as centralized liquidity and Advanced Automated Market Maker (AMM) designs. While the upgrade does not directly change the STX token economy, it is expected to indirectly increase transactions and fees as network activity increases.