The approved bid mechanism allows STRK token holders with a minimum of 20,000 tokens to become participants and others to delegate tokens. Eli Ben-Sasson, CEO of StarkWare, emphasized the importance of this event and called it a "historic milestone" in the development of the network towards full decentralization.
Since this is one of the first Tier 2s to offer this opportunity to #token holders, we are getting closer to a fully community-driven network, said Ben-Sasson. ,
stacking is expected to begin on the test network soon, with the main network scheduled to launch in Q4 of this year. This timeline provides #STRK holders with an urgent opportunity to prepare to participate in the network's betting ecosystem.
the key element of the approved proposal is a #mining mechanism designed to balance shareholder rewards with inflationary expectations. The mechanism uses a mining curve based on a proposal by Professor Noam Nisan. This is determined by the formula M=C/10*S. where S is the percentage of the total number of tokens, m is the annualized mining rate, and C is the theoretical maximum inflation rate.
Illustration of the exchange curve. The blue curve shows how the exchange ratio (M) changes as the rate increases. This means that as the number of tokens in the rate increases, the nominal exchange rate also increases, but it decreases due to the root function. Image generated by Claude3.5Opus.
The value of C will initially be 1.6, but the supply may be changed in the future. The currency committee established by the Starnet Foundation, or the Foundation itself, has the right to adjust C between 1.0 and 4.0 depending on the level of participation.
To ensure transparency, changes to the mining ratio must be publicly announced on the community forum at least 2 weeks in advance, with a detailed justification.
Why should I bet on STRK?
The introduction of this ratio has serious implications for STRK token holders. It provides an opportunity to increase your participation in network management and earn rewards. However, the relatively low voter turnout of 0.08% emphasizes the need for community involvement in future management decisions.
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