Starknet community approves vote to implement STRK token staking by end of 2024

Ethereum Layer 2 Starknet has approved a governance vote to implement staking within its network, with the network paying out rewards to stakers based on the total tokens staked.

Earlier today, the large majority of Starknet (STRK) token holders ratified the proposal submitted by core developer StarkWare, dubbed “SNIP 18.”

Now that the proposal has been approved, Starknet token staking may go live on the testnet soon, followed by the mainnet in the fourth quarter of this year.

Starknet will allow token holders with at least 20,000 STRK to become stakers while others can delegate to them. A minting mechanism that aims to strike a balance between rewarding stakers and setting inflation expectations was also approved in the vote.

There will also be a 21-day time-lock period before funds can be withdrawn.

The staking governance vote was a step toward further infrastructure decentralization, according to StarkWare. “It’s a historic milestone in Starknet’s march towards 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.

The network plans to introduce more governance features and responsibilities for stakers in phases — including their potential role in decentralizing the network’s sequencer and prover.

The Starknet token is trading at $0.4 at the time of writing, having declined more than 75% since its initial release in Feb. 2024. According to The Block’s price page, it has a market capitalization of $710 million and a fully diluted valuation of $4 billion.