Starknet Token Holders Vote in Favor of Staking, Marking a Key Milestone for Network Governance
In a key development for the Starknet ecosystem, STRK token holders have voted in favor of implementing staking, marking a significant advancement for this layer 2 solution.
After months of discussions and preparations since July, the proposal was ratified in a historic vote conducted through the decentralized platform Snapshot X. This decision introduces a new mechanism of economic participation on the Starknet network, offering users the opportunity to generate rewards by actively participating in network security.
Limited Participation but Overwhelming Support
The vote, which started on Tuesday and concluded on Friday, received overwhelming support with 98.94% of voters in favor of introducing staking. However, participation remains low, with only 0.0857% of eligible STRK holders taking part in the election. Despite this relatively low participation rate, this step represents a crucial moment in the evolution of decentralized governance on Starknet, paving the way for greater community involvement in the future.
Staking Access Conditions
The adopted staking mechanism will allow holders of over 20,000 STRK to participate in the network security process starting from the fourth quarter of 2024. This threshold has been set to ensure significant participation and encourage long-term engagement from community members. Staking on Starknet will offer participants rewards in STRK while helping to stabilize the network and maintain optimal security.
Balancing Rewards and Inflation
In addition to the implementation of staking, the vote also approved a minting mechanism to find a balance between rewards for stakers and managing expectations regarding STRK token inflation. StarkWare, the primary development company behind Starknet, emphasized the importance of maintaining controlled inflation while ensuring attractive incentives for participants.
Snapshot X: Innovative On-Chain Governance Platform
One of the key elements of this governance process was the use of Snapshot X, a new decentralized governance platform. Launched this week, Snapshot X brings a fresh approach to on-chain governance management. Unlike its predecessor, Snapshot X determines the voting power based on STRK holdings at predetermined time points, thus preventing external actors from manipulating the system by buying tokens only to participate in the vote and then selling them.
