Starknet Token Holders Approve Staking Plan in Landmark Decentralized Vote

Starting in the fourth quarter of this year, Starknet will enable users holding more than 20,000 STRK tokens to stake on its network.

Key Notes

Starknet token holders approved a new staking feature for Q4 2024.The vote was conducted through Snapshot X, eliminating gas fees for on-chain voting.Starknet’s most recent update improves transaction speed and efficiency with parallel execution and “block packing”.

Starknet token holders have reached a pivotal decision by approving a new staking mechanism through a governance vote on Snapshot X, a decentralized voting platform. The vote, which commenced earlier this week, passed with an overwhelming 98.94% approval rate. However, only 0.08% of eligible voters participated, with the remainder of the votes being 0.45% abstentions and 0.61% against the proposal.

Details of the New Staking Mechanism

Starting in the fourth quarter of this year, Starknet will enable users holding more than 20,000 STRK STRK $0.40 24h volatility: 0.8% Market cap: $707.43 M Vol. 24h: $72.45 M tokens to stake on its network. This new feature is designed to enhance network security and encourage long-term engagement from participants.

In addition, the vote approved a minting mechanism intended to balance staking rewards with inflation control. This approach aims to benefit both the network’s integrity and its community of token holders. While the low voter turnout indicates a need for increased engagement, the successful implementation of these features is expected to set a new standard for on-chain decision-making in the blockchain space.

Snapshot X: A Breakthrough in On-Chain Governance

Snapshot X, the new governance protocol used for this vote, marks a major improvement in on-chain decision-making. Leveraging Starknet’s rollup technology, Snapshot X eliminates gas fees, solving the issues of high costs and inefficiencies seen with traditional on-chain voting. This advancement allows participants in decentralized autonomous organizations (DAOs) and other blockchain communities to vote without paying gas fees, making the governance process more accessible and democratic.

The protocol uses Starknet’s technology and storage proofs to confirm asset ownership on one blockchain without transferring them. This approach not only reduces costs but also boosts security. Snapshot X is designed to be modular and customizable, aiming to make voting processes more streamlined and decentralized, thus setting a new standard for on-chain governance.

StarkNet Rolls Out Parallel Execution

Starknet has rolled out a major update with version 0.13.2, adding parallel execution to its layer-2 network on Ethereum. This new feature allows the network to process multiple transactions at the same time, which is a first for Ethereum’s layer-2 solutions.

The upgrade solves issues with traditional transaction processing that can slow down the network during busy times. By handling transactions in parallel, Starknet aims to improve speed and reduce delays.

The update also includes “block packing”, which makes transactions more efficient by filling blocks with fewer gaps. This change will cut confirmation times from 10-80 seconds down to just 2 seconds, and should get even better as more users join the network. This update is expected to improve efficiency for layer-2 networks overall.

The market is now keenly awaiting reactions to these latest developments and their impact on STRK market performance.

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