Starknet Community Approves New Staking Mechanism With Dynamic Minting Curve

According to Cointelegraph, the Starknet community has overwhelmingly voted to implement a new staking mechanism, which includes a dynamic minting curve for STRK tokens. With nearly 98.94% of voters in favor, the approval marks a significant milestone in the network’s efforts to incentivize staking while balancing token supply. The central feature of the approved proposal is the minting curve, based on Professor Noam Nisan’s “Proposal 2” with slight modifications. This mechanism allows for the adjustment of STRK token supply according to staking participation rates, controlling inflation by minting tokens at a rate proportional to network staking levels. The minting rate (M) will be determined by a formula that scales with the staking rate (S) and a constant (C), initially set at 1.6. The Starknet Foundation, or a designated monetary committee, will have the authority to modify the minting constant (C) within a range of 1.0 to 4.0. This authority enables adjustments to lower the constant if staking levels become too high or to raise it to incentivize staking if participation falls too low. Any adjustments must follow a strict process to maintain transparency, requiring changes to be publicly announced and explained on the community forum two weeks before implementation. Community feedback was largely positive, with many expressing support for the balanced approach. However, a small minority, representing 0.61% of the vote, opposed the proposal. The near-unanimous decision of almost 99% approval did not reflect all voting power among holders, with only 79.65% of total voting power — 1.4 billion STRK tokens — contributing to the decision. The approved proposal comes just over a month after Starknet-powered ZKX Protocol shuttered services due to minimal network engagement. With the new minting curve integration, the network could see improved activity and engagement levels as incentives become adjustable based on user participation in staking.