STRK Token Rises 15% Ahead of Starknet Governance Vote on Minting Curve Mechanism

STRK, the governance token for Starknet, has risen roughly 15% over the last seven days ahead of a Tuesday vote by the protocol's governing body on whether to implement a minting curve mechanism for new STRK tokens.

The price of STRK, the governance token for Starknet, has surged roughly 15% over the last seven days ahead of a Tuesday vote by the protocol’s governing body on whether to implement a minting curve mechanism for new STRK tokens.

Of the top 100 tokens by market cap, STRK is the third-best performer in the past week, trailing only SUI and QNT.

Starknet is a layer 2 network on Ethereum that employs zero-knowledge technology.

If passed, the minting curve mechanism would serve to counterbalance staking rewards with inflation management by enabling “dynamic adjustment of the token supply in response to staking participation rates,” the governance proposal reads.

STRK, which is used to pay for network fees and provides governance rights for holders, is trading flat in the past 24 hours at 42.5 cents, according to CoinGecko. The broader crypto market has increased 2.1% over that same time period.

Voting on the governance proposal comes nearly two months after Natan Granit, a product manager at StarkWare, introduced details of the first stage of staking in Starknet’s discussion forums. Starkware is the software firm behind the L2.

Read More: StarkWare Proposes Staking Plans in Incremental Steps for L2 Network Starknet

Staking refers to users locking up their tokens to secure a blockchain network. Those who stake earn rewards for helping the network maintain its integrity.

The governance proposal outlines two potential avenues for adjusting the STRK minting curve. The first would come from a monetary committee formed by the Starknet Foundation, the nonprofit organization responsible for developing the network’s ecosystem. The second option would involve having the Starknet Foundation directly adjust the minting curve based on whether too much or too little STRK is being staked.

Several wallet addresses have voiced their support, including yurkachuma.eth, who indicated that they would vote in favor of the proposal. However, one address, which goes by the name satsgas.eth, expressed reservations about the two proposed methods for adjusting the STRK minting curve, highlighting their distrust in the Starknet Foundation and suggesting that any adjustments should be made through a governance vote.

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