TL;DR
- Starknet to Introduce Staking: Starknet will launch staking for its STRK token after the SNIP 18 proposal was overwhelmingly approved by the community.
- Community Support: The proposal saw 98.94% approval, highlighting strong community backing for decentralization efforts.
- Future Plans: Staking will go live on the testnet soon, with a mainnet launch expected in Q4 2024, offering STRK holders a chance to participate in governance and network decentralization.
Starknet, a prominent Layer 2 scaling solution for Ethereum, is set to introduce staking for its STRK token following the successful approval of the SNIP 18 proposal. This development marks a significant milestone in the platform’s journey towards full decentralization and enhanced community governance.
Starknet’s Proposal Approval
The SNIP 18 proposal, submitted by StarkWare, received overwhelming support from the Starknet community. Conducted on the decentralized Snapshot X platform, the vote saw 98.94% of participants favor implementing staking, with only 0.45% abstaining and 0.61% voting against it.
This strong endorsement underscores the community’s commitment to advancing Starknet’s decentralization efforts. The newly approved staking system enables STRK token holders who possess at least 20,000 tokens to participate as stakers. In contrast, those with fewer tokens can still contribute by delegating their holdings.
The staking feature includes a 21-day withdrawal time-lock and aims to balance rewards with inflation through a unique minting mechanism.
This mechanism, based on Professor Noam Nisan’s proposal, uses a formula to determine the annual minting rate, ensuring a balance between staker rewards and inflation expectations.
Significance and Future Plans
StarkWare CEO Eli Ben-Sasson highlighted the importance of this development, calling it a “historic milestone” for the chain’s development towards full decentralization. The staking implementation is expected to go live on the testnet soon, with a mainnet launch anticipated in the fourth quarter of this year.
This timeline offers a critical chance for STRK holders to get ready to engage in the network’s staking ecosystem. In the future, Starknet aims to roll out new governance features and responsibilities for stakers in a phased approach.
This could involve opportunities for stakers to play a part in decentralizing the network’s sequencer and prover, thereby strengthening the platform’s dedication to decentralization.
The approval of the SNIP 18 proposal and the upcoming launch of staking on Starknet represent a significant step forward for the platform.
As one of the first Layer 2 solutions to offer staking, Starknet is poised to strengthen its community governance and move closer to full decentralization. STRK token holders are encouraged to engage with the staking mechanism and participate in shaping the future of the network.
