Starknet Token Holders Approve Staking Implementation

On Friday, holders of Starknet’s native token, STRK, participated in a pivotal governance election that resulted in the approval of staking on the layer-2 network. This proposal has been in development since July, marking a significant milestone in Starknet’s evolution. The voting was conducted on Snapshot’s innovative decentralized Snapshot X platform, which has recently been launched.

The vote, which went live on Tuesday, witnessed overwhelming support from participants. However, it is noteworthy that only 0.08% of eligible voters engaged in the process. An impressive 98.94% of those who voted were in favor of implementing staking, while 0.45% chose to abstain and 0.61% cast their votes against the proposal.

With the introduction of this new staking mechanism on Starknet, individuals who hold more than 20,000 STRK will soon be able to stake their tokens on the network, starting in the fourth quarter of this year. This initiative aims to enhance user engagement and incentivize long-term token holding.

Additionally, a minting mechanism designed to balance rewards for stakers while managing inflation expectations was also approved as part of the voting process. StarkWare, the primary developer behind the Starknet blockchain, shared this information in a press release distributed to CoinDesk.

To facilitate the governance process, Starknet is utilizing Snapshot X, the governance protocol released by the Snapshot team on Tuesday, which introduces its first on-chain feature. StarkWare elaborated, stating, “Snapshot X determines voting power based on the voters’ STRK holdings.” This approach aims to ensure that votes originate from genuine community members and to prevent external entities from acquiring STRK solely for the purpose of voting and then quickly selling their tokens. To achieve this, Snapshot X captures a snapshot of STRK holdings at a predetermined time.