Starknet, a prominent Layer-2 scaling solution on Ethereum, has successfully received approval for its proposal to launch a staking program for the STRK coin. This initiative, beginning in the fourth quarter, will allow holders of more than 20,000 STRK coins to participate in staking on the Starknet network. The program is intended to boost both network security and user involvement.
How Will the New Minting Curve Work?
The staking initiative will introduce a new coin minting curve for STRK coins, as outlined on the community governance page. This system is based on a proposal by Professor Noam Nisan, allowing for minor adjustments to align with network requirements. The minting curve employs a formula where the staking rate (S) and the annual minting rate (M) are expressed as percentages, with an annual maximum theoretical inflation rate (C) initially set at 1.6%.
What Are the Options for Adjustments?
Adjustments to the minting curve formula will be overseen either by a treasury committee or the Starknet Foundation itself. Under specific conditions, the constant C can be altered within a range of 1 to 4. This modification aims to either control inflation caused by high staking levels or stimulate more staking activity if participation is low. Any changes will be publicly communicated with detailed explanations at least two weeks before implementation.
Key Points of the Staking Initiative
– Approval received for STRK coin staking program.
– Addresses with over 20,000 STRK can stake.
– New minting curve introduced with flexible parameters.
– Treasury committee will manage minting curve adjustments.
– Transparency maintained through community announcements.
The implementation of the STRK staking program is seen as a critical strategic endeavor aimed at fortifying the Starknet network. It not only seeks to enhance security but also to encourage a more engaged community by motivating coin holders to stake. Through this initiative, Starknet hopes to foster a more secure and participatory ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/starknet-strengthens-security-with-strk-staking