Starknet to Launch STRK Staking via Community Vote

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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August 20, 2024

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Starknet, an Ethereum layer-2 scaling solution, has announced its plan on Tuesday to introduce STRK staking, introducing a new chapter in its governance structure.

This initiative will allow STRK holders to vote on the Mainnet for the first time, empowering them to directly influence the staking mechanism and shape the network’s future.

Community Vote Crucial for Starknet Staking Implementation

Starknet announced the inaugural decision-making process for STRK holders and the upcoming community vote through an official tweet.

The tweet called for the vote and encouraged all community members to review the proposal, provide feedback, and participate in this key decision for the ecosystem.

The core of the proposal revolves around the introduction of a staking mechanism for STRK tokens.

This mechanism will allow token holders to stake their STRK, contributing to the network’s security while potentially earning rewards.

Two critical elements are outlined for community consideration. First, the minting mechanism will govern how new tokens are created and distributed as rewards.

Secondly, the protocol for modifying the parameters of this minting mechanism is essential for maintaining the balance between network security and inflation.

Voting Schedule Amid Internal Challenges

A detailed voting roadmap provided by Starknet ensures that community members will have ample time to understand and test the staking mechanism before casting their votes.

The vote will be conducted in two stages: a test voting period and the official voting period.

The test vote is scheduled from September 2 to September 4, 2024, offering STRK holders a three-day window to participate in a simulated voting process on the testnet.

This preliminary vote allows the community to familiarize themselves with the staking process and the proposed minting mechanism in a risk-free environment.

After the test vote, the official voting period is scheduled for September 9 to September 13, 2024.

During this five-day window, STRK holders will cast their votes on the Mainnet, either delegating their voting power or voting directly through the Starknet governance hub.

The outcome of this vote will determine whether the proposed staking mechanism is approved and implemented on the Starknet network.

Starknet’s governance hub will serve as the central platform for this voting process. The hub provides all the necessary tools for STRK holders to participate, including options to delegate voting power to representatives or to self-delegate, ensuring that every holder has a voice in this critical decision.

The Starknet Foundation is undergoing a leadership transition as Diego Oliva, its first CEO, steps down.

He will be succeeded by James Strudwick, who joined the Foundation earlier this year as Head of Ecosystem Growth.

This transition occurs amidst ongoing controversy within the Starknet community, particularly concerning the STRK token unlock and the subsequent airdrop.

The distribution of 700 million STRK tokens initially sparked a surge in active users, but enthusiasm quickly waned, leading to a significant drop in user engagement.

Additionally, the recent abrupt shutdown of the decentralized exchange ZKX, a protocol built on Starknet, has drawn criticism for poor communication and transparency, further complicating the challenges faced by the new leadership.

These internal challenges, coupled with external threats such as the July 1 Discord security breach, underscore the urgency for strong leadership and community engagement as Starknet navigates this pivotal moment.