Starknet Initiates Staking Phase for STRK Coin

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One of today’s significant events was Starknet’s staking initiative, which has launched its initial phase as expected. Regular and satisfactory rewards for network participants are crucial for both network security and community strength. Starknet has commenced this on the mainnet, and important details are included.

Starknet Staking

In a significant move towards decentralization, Starknet has introduced the staking mechanism on Layer 2. The network has earned the title of the first rollup with an L2 staking mechanism, gradually transitioning from its current architecture to a Proof of Stake protocol.

“Since its inception, Starknet has aimed to transfer operational responsibilities to the community as part of a comprehensive roadmap toward full decentralization. This vision aligns with the longstanding Web3 ethos of resisting centralization and maintaining control over one’s assets and digital life. It also embodies a commitment to ensure that Starknet’s network operates and is utilized by a diverse and inclusive ecosystem, protecting it from the excessive influence of a single entity.”

Staking Requirements

Anyone holding STRK Coin can stake as a validator or delegate. In the initial phase, validators will be allowed to stake a minimum of 20,000 STRK. Validators will also be required to run nodes to participate more actively in network maintenance and security.

Delegates can stake by selecting a validator who will run the necessary software on their behalf, with no minimum limit imposed. They simply need to choose the pool they wish to join as a validator.

Staked STRK will be locked in special L2 contracts, and rewards will be distributed in proportion to participation. The more STRK is staked, the lower the rewards and the higher the inflation. The community voted to limit future inflation to 1.6%. The security lock for withdrawals will be 21 days.

Regarding STRK Coin, its price began to decline after testing the resistance at 0.644 dollars before BTC’s drop accelerated. The price region, tested twice in July, could not be surpassed, leading to a drop to 0.32 dollars.

A major rally for altcoins will not begin unless we see long green candles reflecting a clear reversal in the ETHBTC pair. If this occurs, STRK could attempt to reclaim the support at 1.16 with closures above 0.7585 dollars. Given the inflation limitation, it will be interesting to see if there’s massive token demand for staking. Regardless of the number of validators and delegates, a contraction in available supply is expected, which could be somewhat positive for the price.

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