Starknet, a major layer-2 blockchain operating on Ethereum, has introduced a new feature that allows users to earn money by staking their tokens and validating transactions. This move aims to decentralize the network and has been in development for some time. The main developer of Starknet, StarkWare, proposed this change to the community back in July.
With this new feature, anyone holding a minimum of 20,000 STRK tokens (equivalent to around $12,000) can stake their tokens as collateral and receive rewards for validating transactions. Users who have fewer than 20,000 STRK tokens can delegate their tokens to validators to stake on their behalf. However, validators or delegators who act maliciously or neglect their responsibilities risk losing their staked tokens.
Those interested in withdrawing their staked tokens will need to wait for 21 days to receive them along with any rewards earned from staking. This process mirrors the proof-of-stake consensus mechanism that the main Ethereum chain transitioned to in 2022 after a lengthy process.
CEO and co-founder of StarkWare, Eli Ben-Sasson, mentioned that while Ethereum took three years to implement proof-of-stake, Starknet is on its way to becoming the first major layer-2 blockchain to embrace decentralization. The team at StarkWare plans to monitor staking activities on the network during the initial phase and then evaluate how validators can take on additional responsibilities like creating and confirming blocks in the protocol.
Bitwise Asset Management has announced that it will run a public validator for STRK holders to delegate tokens to, as well as separate validators for institutional clients. This move indicates growing interest and support for staking on Starknet.
The implementation of staking on Starknet marks a significant step towards decentralization and could potentially enhance the network’s security and efficiency. As users continue to explore the possibilities of earning rewards through staking, the ecosystem of layer-2 blockchains like Starknet is expected to evolve and grow in the coming months.
