Don't have to be encrypted and it's not staking.
It's an airdrop which will end, if everything is distributed - most important part:
You have to have at least 10 BTX on your own address in your wallet.
For November distribution you have to register your address, which will be at the earliest possible in October, guides will be provided in some time.
The encryption was related to the security of the wallet. I want to make sure my coins don't get hacked.
I know that I must have 10 BitCore Coins.