In a significant step toward full decentralization, the Starknet community has overwhelmingly supported a proposal for a new minting curve mechanism. This decision, made by the token holders, focuses on enhancing staking rewards through a revised minting curve. The decentralized vote, which took place on Tuesday, marks a turning point for the network’s staking ecosystem.
Despite the importance of the vote, only 0.08% of eligible Starknet native token (STRK) holders participated. Of those who voted, 98.94% backed the proposal, with 0.45% choosing to abstain and 0.61% voting against the motion. The results reflect broad approval of the proposal, which aims to balance the token supply while incentivizing staking.
Starknet shared the outcome on X, formerly known as Twitter, saying, “The vote on the STRK staking parameters has concluded, passing with 98.94% in favor.”
Starknet Minting Curve Mechanism
The approved proposal introduces a staking system based on Professor Noam Nisan’s “Proposal 2,” albeit with slight modifications. Under this new framework, STRK token holders who possess a minimum of 20,000 tokens will be eligible to become stakers. For those who don’t meet the threshold, token delegation will be allowed, ensuring broader participation in the staking process.
Eli Ben-Sasson, CEO of StarkWare, emphasized the importance of the vote, describing it as a “historic milestone” for the Starknet chain’s progress towards decentralization. According to Ben-Sasson, this new staking structure is a crucial part of Starknet’s long-term development.
Adjusting the Minting Curve
A key aspect of the proposal is the authority granted to the Starknet Foundation, specifically its monetary committee, to adjust the minting constant (C). The value of C will range between 1.0 and 4.0, allowing for adjustments to balance staking levels.
If staking participation becomes too high, the committee has the authority to lower the minting constant. Conversely, if engagement declines, they can raise the value to attract more participants. Any proposed adjustments must follow a strict process, with changes being publicly announced and explained on the community forum at least two weeks prior to implementation.
This transparent approach ensures that any modifications to the staking rewards are clearly communicated to the community, fostering trust in the decision-making process.
Future Impacts of the Proposal
The passing of the minting curve proposal comes just a month after Starknet-powered ZKX Protocol suspended its services due to low network engagement. The newly approved mechanism is expected to stimulate more activity on the Starknet network by making staking incentives more dynamic and responsive to user participation.
As the community prepares for the mainnet launch later this year, it is hoped that the new system will lead to improved engagement and long-term stability for the Starknet ecosystem. This could mark the beginning of a new era of participation and growth for the network, especially as incentives are now more adaptable to fluctuating levels of staking.
Also Read: UK High Court Declares Tether as Property in Landmark Case