Starknet community has approved the launch of STRK native token staking

Coin blocking will be available to users from Q4 of this year

13.09.2024 - 15:00

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What’s new? The community of the Ethereum blockchain-based Starknet Layer 2 (L2) network has approved the implementation of staking of the STRK native token. Only 0,08% of eligible coin holders participated in the vote. Of those, 98,94% approved the initiative. The new mechanism will allow any user who owns more than 20 000 STRK to stake coins from Q4 of this year.

Voting on the community’s forum

What else is known? Other users will also be able to delegate staking authority to high-volume coin holders. Staking on the testnet will be activated soon.

The vote also approved the minting mechanism, which is intended to strike a balance between rewarding stakers and setting inflationary expectations.

In addition, there will be a 21-day temporary lock-in period before coins are removed from staking.

To support the governance process, the Starknet team released the Snapshot X protocol, which determines voting eligibility based on voters’ possession of STRK. The protocol ensures that votes are cast by genuine community members, and prevents people outside the community from buying STRK just to participate in voting and then selling it. To accomplish this goal, Snapshot X takes a snapshot of STRK stock at a predetermined time.

StarkWare called the vote a historic milestone in Starknet’s move toward full decentralization.

“As one of the first Layer 2s to offer this opportunity to its token holders, we are moving closer to having a network that is fully operated and run by the community for the community,” said Eli Ben-Sasson, CEO of StarkWare.

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At the time of writing, the STRK token is trading at $0,4, down more than 75% since launching in February 2024. The asset has a market capitalization of $710 million and a fully diluted valuation (FDV) of $4 billion.

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