Starknet approves staking service with a large majority of votes

Holders of the STRK token, native to the Starknet network, approved the implementation of a staking mechanism on the layer-2 platform in a vote held this Friday. The proposal, which has been under discussion since July, was put to a vote through the decentralized platform Snapshot X, a governance tool.

Voting began on Tuesday and ended with overwhelming support for the staking proposal. However, only 0.08% of eligible STRK token holders participated in the process. Of the votes recorded, 98.94% were in favor of implementing staking, 0.45% abstained, and 0.61% voted against.

With the approval, the new mechanism will allow anyone holding more than 20,000 STRK tokens to stake on the Starknet network starting in Q4 of this year. Additionally, the proposal included the approval of a minting mechanism. The goal of the solution is to balance rewards for stakers and control inflation expectations.

Community approves staking on Starknet

StarkWare, the main company behind the development of Starknet, detailed the decision in a press release. According to StarkWare, the approved minting system aims to reward those who participate in staking. At the same time, it aims to control the issuance of new STRK tokens.

Starknet governance is carried out through Snapshot X, a protocol that allocates voting power based on the amount of STRK tokens each voter holds. The goal of this model is to ensure that decisions are made by genuine community members, preventing outsiders from buying tokens just to vote and then selling them shortly after the vote.

Snapshot X captures a snapshot of STRK holdings at pre-determined points in time, ensuring that only those holding the token at the time of the vote have the right to vote. This new governance functionality is the first to be implemented entirely on-chain, bringing greater transparency and security to the decision-making process.

With this new stage, Starknet advances in the decentralization of its governance and the strengthening of its ecosystem, offering more opportunities for its users to directly participate in the development and future of the network.

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