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The popular altcoin project Starknet has approved a governance proposal, “SNIP 18,” to implement staking on its network. The proposal, submitted by StarkWare, received overwhelming support from STRK token holders, with the majority voting ‘yes.’
The Altcoin Project Approves the Proposal by a Landslide!
The Starknet community voted in favor of implementing a new staking mechanism, which includes a dynamic minting curve for STRK tokens. Nearly 98.94% of the voters supported the proposal, which is designed to balance the token supply within the network. This approval marks a significant milestone in the project’s long-term efforts to encourage staking participation.
James Strudwick, the Executive Director of the Starknet Foundation, highlighted that this approval positions Starknet as the first major Ethereum Layer 2 to initiate staking. Eli Ben-Sasson, CEO of StarkWare, echoed these sentiments, stating that the approval gives the community a true and metaphorical stake in the network’s future.
Minting Curve Mechanism Explained
At the heart of the newly approved proposal is the minting curve feature, based on minor modifications from Professor Noam Nisan’s “Proposal 2.” This mechanism allows the STRK token supply to adjust according to staking participation levels. It aims to control inflation by minting tokens proportionate to the staking levels in the network. The minting rate (M) will be determined by the staking rate (S) and a constant (C), initially set at 1.6%.
Authority to Adjust Minting Parameters
The Starknet Foundation or a monetary committee will have the authority to adjust the minting constant (C) within a range of 1.0% to 4.0%. This authority will allow adjustments to the staking levels—if staking participation becomes too high, C will be reduced, or if participation drops, C will be increased to incentivize staking. These adjustments will follow a strict process to ensure transparency, including a two-week advance notice to the community forum.
Community Feedback on the Altcoin Staking Proposal
Community feedback on the proposal has been largely positive, with many supporting the balanced approach. However, a small minority, representing 0.61% of the votes, opposed the proposal. Despite nearly 99% approval, only 79.65% of the total voting power (equivalent to 1.4 billion STRK tokens) contributed to the decision. As reported by Turkish NY Radio, the proposal follows closely after the Starknet-backed ZKX Protocol ceased services due to minimal network participation.
For more updates on this critical development and other altcoin news, stay tuned to Turkish NY Radio.
