STRK Staking Phase 1 Is Now Live On Mainnet

Key Points:

• The first phase of STRK staking allows holders to stake and contribute to network security, with solo staking for those with over 20,000.
• STRK holders can delegate tokens to validators like Luganodes and Staking Rewards to earn rewards, with a user-friendly interface for delegation launching soon.

Starknet, an Ethereum Layer-2 scaling solution, has launched the first phase of its staking mechanism, enabling holders of its STRK tokens to stake and contribute to the network’s security and functionality.

Read more: Starknet Aims to Become the Cheapest Layer-2 

Starknet Unveils First Phase of STRK Staking

The rollout marks a significant step toward Starknet’s goal of becoming a fully decentralized proof-of-stake network.

Holders of a minimum of 20,000 STRK tokens can participate in solo staking, where they are actively involved in securing the network and earning rewards. The smaller holders can, however, delegate their claims to professional validators such as Luganodes, Validation Cloud, and Staking Rewards.

Options for delegation will facilitate those users who do not want to deal with the technical process of STRK staking and want to receive rewards by delegating their tokens to validators. The delegation UI will be released simultaneously with the release of the dApps tomorrow.

The tokens that are to be used in staking will be locked, and their withdrawals will be subjected to a 21-day period wherein there is no accrual of rewards. To complement the STRK staking mechanism, Starknet has minted 1.3 million STRK tokens that now form part of the pre-staking phase as validated by network governance. The inflation rate for the tokens is capped at a maximum of 1.6%.

Starknet’s Staking Strategy Supports Long-Term Network Decentralization

Permissionless STRK staking and stake delegation ushers in the phased implementation. Subsequent steps will be validators attesting to blocks, block voting, and validation in Phase 3, followed by full responsibility for block production in Phase 4.

In related news, Bitwise Onchain Solutions plans to start offering decentralized staking services for Starknet on November 26. To date, BOS has custodied more than $3.5 billion in staked assets on Ethereum, and this represents the first expansion of its staking service into Starknet.