In a groundbreaking move, Starknet has become the first prominent layer-2 blockchain on Ethereum to introduce a staking feature, allowing users to earn rewards by validating transactions and staking their tokens. This development aims to further decentralize the network and has been in the works for some time, with StarkWare, the primary developer, formally proposing the change in July. Users with at least 20,000 STRK tokens can now pledge these assets as collateral to validate transactions and earn rewards. Those with fewer tokens can delegate them to validators for staking.
However, validators who misbehave or neglect their duties risk forfeiting their staked tokens. A 21-day waiting period is required for validators and delegators to withdraw their staked tokens and receive any earned rewards. This move follows Ethereum's transition to a proof-of-stake consensus mechanism in 2022. According to Eli Ben-Sasson, CEO and co-founder of StarkWare, 'While it took Ethereum three years to achieve this, Starknet is taking significant steps towards decentralization as the first major layer-2 network to do so.' In April 2024, Metis, a smaller layer-2 network, also introduced staking, albeit with a different setup where tokens are locked on the main Ethereum chain.
The implementation of staking on Starknet is part of a multi-phase plan, with the initial phase focusing on studying staking habits and assessing the potential for validators to take on additional responsibilities such as creating and confirming blocks. As Ben-Sasson noted, 'This development paves the way for community members to sequence and validate Starknet blocks, which is crucial for true decentralization.' In anticipation of this launch, Bitwise Asset Management has announced plans to operate a public validator for STRK holders and separate validators for large institutional clients.