Starknet, a Layer-2 scaling solution for Ethereum (ETH) has proposed token staking, which will launch in the fourth quarter of 2024. According to the proposal, a comprehensive plan is in place to initiate token staking through the Starknet Improvement Proposal (SNIP), although it awaits the community’s approval.
Starknet Waits for Community Approval to Begin Testnet
Should the community give the green light, Starknet intends to roll out this feature on its testnet as soon as possible. This approach allows for thorough testing and feedback, ensuring potential issues can be addressed before the full mainnet deployment.
Central to the staking mechanism is a stipulated 21-day time lock period. This means that once users commit their tokens to staking, they must wait for 21 days before they can withdraw their funds. Meanwhile, Starknet’s move to introduce staking aligns with broader trends in the blockchain industry, where staking has become a popular method for securing networks and providing rewards to token holders.
When the proposal is approved, individuals will either delegate to a staker or act as a staker themselves. They will receive rewards proportionate to the amount they stake. Notably, these rewards will be based on a modified version of a minting curve proposed in February.
Starkware Works on a New Project
In March, Starkware, the creator of the Ethereum Layer-2 network Starknet, unveiled its plans to introduce a new open-source zero-knowledge prover named Stwo. Still, in the development phase, this tool aims to decrease latency and processing expenses, lowering the costs associated with blockchain transactions.
Meanwhile, Starknet’s native token (STRK) stands at $0.59, representing a minor increase of 0.87% over the past 24 hours. The 24-hour trading volume has decreased by 0.51%, currently $64,173,747, according to data from CoinMarketCap. Despite these fluctuations, STRK maintains a market capitalization of $1,460,140,491, positioning it among the top 100 cryptocurrencies by market capitalization.
Harnessing Starknet Technology for Scalability
Starknet’s success can be attributed to its innovative use of STARK technology, a highly secure and scalable cryptographic-proof system. By leveraging STARK technology, Starknet delivers solutions that address Ethereum’s scalability challenges without compromising security and decentralization.
Recall that, Starknet Total Value Locked (TVL) witnessed a substantial surge in February. Its remarkable achievement placed it in the elite league of digital assets with over $1 billion TVL milestone.
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