Decentralizing the Auxiliary Network: Starknet Introduces Staking Feature

Starknet, a major layer-2 blockchain running on top of Ethereum, has become the first auxiliary network to implement staking, allowing users to earn money by pledging their tokens and validating transactions. This feature is intended to decentralize the network and has been in development for some time. StarkWare, the main developer firm behind Starknet, formally proposed the change to the community in July.

The introduction of staking on Starknet follows a long transition period, during which the Ethereum chain completed its switch to proof-of-stake consensus mechanism in 2022. This change aimed to increase efficiency and reduce energy consumption, making it more environmentally friendly. Starknet is now following suit, with Eli Ben-Sasson, CEO and co-founder of StarkWare, stating that "It took Ethereum three years to get this right. It's also going to take us time, but Starknet will be the first major L2 to take these steps toward decentralization."

Staking on Starknet is part of a multiphase plan, with the first phase focusing on studying staking habits and assessing whether validators can be given additional responsibilities, such as creating and attesting blocks in the protocol. Ben-Sasson emphasized that "We are paving the way for enabling members of the Starknet community to sequence and validate Starknet blocks, which is where the true magic of decentralization takes effect."

To participate in staking on Starknet, users must have at least 20,000 STRK tokens (approximately $12,000 at recent prices). They can pledge these assets as collateral and earn rewards for validating transactions. Users with fewer than 20,000 STRK can delegate their tokens to validators to stake on their behalf. Validators that behave maliciously or neglect their duties risk forfeiting staked tokens.

The withdrawal period for staked tokens has been set at 21 days, during which time users will also receive any rewards earned from staking. This allows the network to ensure that validators are responsible and committed to their duties.

Starknet is following in the footsteps of Ethereum, but with a focus on decentralization. The introduction of staking is an important step towards achieving this goal, as it enables members of the community to participate directly in validating transactions and creating blocks.

Validators and Delegators: A New Era for Starknet

The introduction of staking on Starknet has opened up new opportunities for validators and delegators alike. For validators, staking allows them to earn rewards by pledging their tokens and participating in the validation process. This can be a lucrative opportunity, as validators are responsible for ensuring the integrity of the network and maintaining its security.

Delegators, on the other hand, can participate in staking by delegating their tokens to validators. This way, they can still earn rewards without having to manage the technical aspects of validation themselves. Delegators can choose from a variety of validators, each with their own reputation and track record.

A New Level of Decentralization

The introduction of staking on Starknet marks an important milestone in the network's journey towards decentralization. By allowing users to participate directly in validating transactions and creating blocks, the network is becoming more decentralized and community-driven.

Eli Ben-Sasson emphasized that "We are paving the way for enabling members of the Starknet community to sequence and validate Starknet blocks, which is where the true magic of decentralization takes effect." This means that users will have a greater say in how the network operates and can participate more directly in its development.

Anticipating the Launch of Staking on Starknet

Anticipating the launch of staking on Starknet, Bitwise Asset Management announced that it would run a public validator to which any STRK holders can delegate tokens. This is an important step towards making staking accessible to a wider audience and ensuring that the network remains decentralized.

Conclusion

The introduction of staking on Starknet marks an important milestone in the network's journey towards decentralization. By allowing users to participate directly in validating transactions and creating blocks, the network is becoming more community-driven and decentralized. With the first phase of staking already underway, it will be exciting to see how this new feature develops and shapes the future of Starknet.