Starknet officially launched its staking on Ethereum and has become the first major Layer-2 platform on the Ethereum blockchain, making a huge step towards decentralization and enhancing the Starknet ecosystem's economic security.
Starknet unveils phase 1 staking: a new era for Ethereum layer 2
It started in July when developers at StarkWare officially announced the news to the community. Anyone with at least 20,000 STRK tokens (approximately $12,000 at current prices) could pledge their assets as collateral and earn rewards to validate transactions. Those with less than 20,000 STRK can delegate their tokens to validators, who may stack them on their behalf.
However, the new validators and delegates have one important detail: they must wait 21 days before withdrawing tokens and rewards. Following in the footsteps of the core Ethereum network, which will complete its long transformation to a proof-of-stake consensus in 2022, Starknet is taking its first steps toward decentralization.
Ethereum took three years to establish this process. It will take us as well, but Starknet will be the first major L2 to take these steps towards decentralization.Eli Ben-Sasson, CEO and co-founder of StarkWare
Phased staking rollout: a step towards decentralized evolution
The introduction of Starknet is part of a multiphase plan. As part of the first phase, the StarkWare team will study staking habits on the network and, based on these data, evaluate how to give its validators additional responsibility for creating and validating blocks in the protocol.
Starknet's phased approach to staking mirrors Ethereum's gradual transition to a proof-of-stake (PoS). By implementing this mechanism incrementally, Starknet aims to gather valuable on-chain data and analyze user behavior before expanding the validator responsibilities. This cautious rollout is crucial for ensuring network stability and optimizing performance as more users engage with the platform.
Validators in this initial phase primarily run full nodes and interact with the staking contracts. It is anticipated that as the system evolves, these validators will assume more intricate responsibilities, such as block production and verification. This shift is crucial for creating a decentralized atmosphere, in which community members actively contribute to defining the network's future.
Notable players, such as Bitwise, who participated as early validators, further solidified Starknet's credibility. Bitwise's extensive experience in Ethereum staking positions him as an ideal partner for this initiative. Their involvement enhanced trust and showcased Starknet's commitment to leveraging established expertise in building a staking ecosystem.
The role of staking in shaping governance models
Understanding Ethereum staking becomes increasingly important as users navigate these new dynamics. Staked tokens often grant holders voting rights or influence key decisions that affect a network's future. As Starknet evolved its governance framework through this staking initiative, it set a precedent for other layer-2 solutions to enhance community engagement.
Moreover, this model encourages long-term investment strategies among the token holders. The possible benefits of staking can greatly surpass immediate trading profits, encouraging users to consider their positions more strategically. With rising interest in Ethereum staking calculators, investors can more effectively assess their possible returns according to different staking scenarios.
Starknet achieves 857 TPS in high-pressure stress testing
In conjunction with its staking launch, Starknet recently achieved an impressive throughput of 857 transactions per second (TPS) during high-pressure stress testing. This achievement sets a new standard for Ethereum layer-2 solutions and shows that Starknet can manage the growing demand while maintaining efficiency and security. Layer-2 solutions, such as Starknet, aim to reduce congestion on the Ethereum main chain by handling transactions off the chain while maintaining security and solving scalability issues.
The successful stress test validates Starknet's technical capabilities and enhances confidence among potential stakeholders concerned about network performance during peak usage times. As more users flock to layer-2 solutions, seeking lower fees and faster transactions, Starknet’s achievements position it favorably within an increasingly competitive landscape.
Conclusion
Starknet's first launch was an important step forward for Ethereum and decentralized finance. By giving token holders new ways to stake their tokens, Starknet leads the way in encouraging community involvement.
Potential participants should approach this new opportunity with caution. Staking Ethereum involves risks that necessitate thorough research and an understanding of market dynamics.
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