Starknet Community Approves Dynamic Staking

A near-unanimous vote by the Starknet community has approved a dynamic new staking mechanism.

With more than 98% votes in favor, Starknet moves one step closer to incentivizing staking while balancing token supply. Essentially, the new feature allows for the STRK token supply to adjust according to staking participation rates. The aim is to control inflation by minting tokens at a rate that is proportional to network staking levels.

There’s a minimum of 20,000 STRK or $8,000 to become a native staker, while there’s no minimum for a delegate, the team said.

According to the widely approved proposal, either the Starknet Foundation or a monetary committee created by the foundation will have the authority to adjust the minting curve within the range of 1% to 4%.

If insufficient STRK is staked, then the curve will be increased, whereas the curve will be lowered when there is an excessive amount of STRK staked.

Having a more nuanced way to incentivize staking while balancing inflation is likely also a bid to counter the relentless downtrend in activity that Starknet is suffering. According to Dune data, except for brief peaks, the daily transaction count rounds the 70,000 mark, which is a 80% drop from this time last year.