STRK Staking Coming to Starknet in October, Holders to Vote on Minting Mechanism

Per the latest development, Ethereum Layer 2 Starknet said that it would soon allow holders of the native STRK tokens to vote on the mainnet

Starknet, an Ethereum Layer 2 scaling solution, has announced that it will soon enable holders of the native STRK tokens to participate in on-chain governance votes on the mainnet. This marks a significant milestone in the development of the Starknet ecosystem.

The first voting proposal will introduce STRK staking on the Layer 2 platform, allowing users to provide input on the minting mechanism and the conditions for modifying its parameters.

Once the proposal goes live, community members are encouraged to review the proposal thoroughly, share their feedback, and actively participate in the crucial vote. Starknet will be hosting a 5-day voting period, set to take place from September 9-13 next month.

Starknet is now having its first-ever Mainnet vote for STRK Holders. The first voting proposal will introduce STRK staking into the Starknet ecosystem. STRK Holders will have the chance to voice their opinions on the proposed minting mechanism and the conditions for modifying its parameters.

As a quick refresher, the Starknet minting mechanism governs the creation of new tokens and the distribution of rewards. A portion of fees and newly minted tokens is allocated to smart contract developers based on the value of their contracts.

Core developers of the platform will receive tokens via a model designed to strike a balance between decentralization and human oversight. A total of 10 billion tokens will be initially allocated by Starknet, with varying portions going to the Foundation, StarkWare investors, and core contributors.

In addition to the minting mechanism, the upcoming proposal will also cover the protocol for parameter adjustment of the minting mechanism. This will allow for future modification of the minting mechanism to maintain balance and sustainability.

With this voting process in place, STRK Holders will collectively decide on crucial matters pertaining to the network. It is important to note that STRK staking is a multi-step process.

Back in July, StarkWare CEO Eli Ben-Sasson stated that the company aims to introduce staking via a Starknet improvement proposal (SNIP) by the year-end.

Following community approval via SNIP, and the conclusion of the voting process next month, staking on the Ethereum Layer-2 platform will now launch in October.

Starknet describes the introduction of STRK staking as a gradual process, undertaken to ensure network stability and security in the long-term as it aims to establish a reliable Proof-of-Stake (PoS) mechanism. It adds that STRK staking will undergo testing and validation.

“Introducing features in small, manageable milestones ensures careful implementation and integration. This approach allows for refinement and issue resolution as they arise, and it gives network participants time to adapt, maximizing stability during the transition,” Starknet noted.

STRK staking will have a 21-day locking period after users choose to unstake their tokens. During this period, users will not earn any staking rewards and cannot withdraw the funds. However, delegators can change their delegate at any time without a lock-up period.

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