Ethereum

Starknet

Update Sept. 13, 10:10 UTC: This article has been updated to add commentary from Starknet Foundation and StarkWare.
The Starknet community has overwhelmingly voted to implement a proposed new staking mechanism, including a dynamic minting curve for STRK tokens.&nbsp;
With almost 98.94% of voters in favor of the proposal, the approval signifies a milestone for the network’s long-term efforts to incentivize staking while balancing token supply.
James Strudwick, executive director at Starknet Foundation, told Cointelegraph that the approval positions Starknet as “the first major Ethereum L2 to roll out staking.”
Eli Ben-Sasson, CEO of StarkWare, reinforced Strudwick’s comment, explaining that the approval “gives the community a real stake — literally and figuratively — in its future.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/snapshot-x-gas-free-onchain-voting-starknet" rel="null" target="null" text="null" title="null">Starknet minting vote will be gasless with new governance protocol</a>
<h2 id="minting-curve-mechanism-explained">Minting curve mechanism explained</h2>
The minting curve feature is central to the now-approved proposal, introducing a minting curve based on Professor Noam Nisan’s “Proposal 2” with slight modifications.&nbsp;
The feature allows STRK token supply adjustment according to staking participation rates to control inflation by minting tokens at a rate proportional to network staking levels.
The minting rate (M) will be determined by a formula that scales with the staking rate (S) and a constant (C), which will initially be set at 1.6%.
<figure>
 <img alt="Starknet staking vote passes: New minting curve approved" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191eb47-d78d-7115-9a8b-d5007f3e82a4">
 <figcaption style="text-align: center;">
 Image from the proposal depicting the minting mechanism and formula. Source: Starknet Governance
 </figcaption>
</figure>
 Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/starknet-parallel-execution-0132-update" rel="null" target="null" text="null" title="null">Starknet rolls out parallel execution in latest update</a>
<h2 id="authority-to-adjust-minting-parameters">Authority to adjust minting parameters</h2>
The Starknet Foundation, or a designated monetary committee, will be able to modify the minting constant (C) within a range of 1.0% - 4.0%.
This authority adjusts the minting parameters to lower the C if staking levels become too high or to raise it to incentivize staking if participation falls too low.
Adjustments must follow a strict process to maintain transparency, requiring changes be publicly announced and explained on the community forum two weeks before the change. Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/starknet-first-staking-vote-mainnet-launch" rel="null" target="null" text="null" title="null">Starknet set for first mainnet staking vote: What STRK holders need to know</a>
<h2 id="community-feedback">Community feedback</h2>
Although community feedback was largely positive, with many expressing support for the balanced approach, a small minority, representing 0.61% of the vote, opposed the proposal.
The near-unanimous decision of almost 99% approval did not reflect all voting power among holders, with only 79.65% of total voting power — 1.4 billion STRK tokens — contributing to the decision. The approved proposal comes just over a month after Starknet-powered ZKX Protocol shuttered services <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/zkx-protocol-starknet-shutters-blaming-lack-of-users" rel="null" target="null" text="null" title="null">due to “minimal” network engagement.</a>
With this new minting curve integration, the network could see improved activity and engagement levels as incentives become adjustable based on user participation in staking.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/simple-change-save-ethereum-roadmap-to-hell/" rel="null" target="null" text="null" title="null">Proposed change could save Ethereum from L2 ‘roadmap to hell’</a>

Starknet staking vote passes: New minting curve approved

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Cointelegraph

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