The popular altcoin project Starknet has approved a governance proposal known as “SNIP 18”, paving the way for staking on its network. StarkWare’s proposal was overwhelmingly supported by STRK token holders, marking a significant milestone for the project.
The Altcoin Project Approves Proposal with an Overwhelming Majority!
The Starknet community voted overwhelmingly to implement a new staking mechanism for STRK tokens, including a dynamic minting curve. Nearly 98.94% of voters supported the proposal, which aims to balance the token supply in the network. This approval represents a significant step in Starknet’s long-term efforts to incentivize staking.
James Strudwick, Executive Director of the Starknet Foundation, noted that the approval positions Starknet as the “first major Ethereum L2 to initiate staking.” StarkWare CEO Eli Ben-Sasson echoed this sentiment, stating that the approval gives the community a “real stake in the project’s future, both literally and figuratively.”
The Minting Curve Mechanism Explained
The minting curve feature is at the heart of the approved proposal, which builds on Professor Noam Nisan’s earlier “Proposal 2.” This feature adjusts the STRK token supply based on staking participation levels, aiming to control inflation by minting tokens in proportion to staking activity. The minting rate (M) will be determined using a formula that scales with the staking rate (S) and a constant (C), initially set at 1.6%.
Authority to Adjust Minting Parameters
The Starknet Foundation or a designated committee will be able to adjust the minting constant (C) within a range of 1.0% to 4.0%. This allows them to reduce C if staking levels are too high or increase it if participation is low to encourage more staking. These adjustments will follow a strict process to maintain transparency, with any changes being publicly announced two weeks prior in the community forum.
Community Feedback on the Altcoin Proposal
Feedback from the Starknet community has mainly been positive, with many supporting the balanced approach. However, a small minority, representing 0.61% of the votes, opposed the proposal. Despite the 99% approval, the decision didn’t reflect all the holders’ voting power, as only 79.65% of the total voting power (1.4 billion STRK tokens) contributed to it. Turkish NY Radio reported that the proposal came just one month after the Starknet-supported ZKX Protocol shut down due to “minimal” network participation.
