Starknet Introduces New Staking Mechanism and Enhances Network with Major Upgrades

• Starknet launches new staking mechanism with 98.94% approval but faces low voter turnout.
• New staking and minting features aim to boost security and stability in the Starknet ecosystem.
• Starknet’s network upgrades include parallel transaction execution to reduce congestion and speed up transactions.

Starknet is set to launch a new staking mechanism alongside significant network upgrades in the final quarter of 2024. This move, backed by a 98.94% approval rate from the community, aims to enhance the security and participation within the Starknet ecosystem. 

The updates, which include improvements to transaction processing and governance mechanisms, mark a substantial step forward for the decentralized network.

The newly approved staking feature is designed to increase security and engagement on the Starknet network. Users holding over 20,000 STRK tokens will be required to stake them, thereby contributing to the network’s security. 

This initiative seeks to incentivize active participation among token holders, ensuring the long-term sustainability and stability of the Starknet infrastructure.

The staking mechanism’s approval came through a governance vote on Snapshot X, a decentralized platform that leverages Starknet’s roll-up technology. While the amendment received overwhelming support, with 98.94% in favor, the voter turnout was notably low. 

Only 0.08% of registered voters participated in the decision, highlighting the need for increased community engagement in Starknet’s governance processes.

In addition to the staking feature, the voting process also approved a new minting mechanism. This mechanism aims to maintain the stability of staking rewards and ensure the proper functioning of inflation mechanisms.

The minting process is intended to complement the staking feature by preserving the value of user rewards without diminishing the overall supply of tokens.

Despite the successful vote, the low voter turnout underscores a significant challenge for Starknet’s governance model. While the majority of participants supported the proposal, the limited engagement suggests that more efforts are needed to involve a broader segment of the Starknet community in decision-making processes.

Starknet has also implemented major upgrades to its network with the release of version 0.13.2. The new update introduces parallel transaction execution on Ethereum, allowing the network to process multiple transactions simultaneously.

This advancement significantly reduces network congestion and improves transaction speeds, enhancing user experience.