Vitalik Buterin, an early investor in StarkNet, recently unlocked 1.268 million STRK tokens from the Starknet LockedTokenGrant contract, valued at approximately $470,000.

Currently, he holds a total of 2.113 million STRK tokens, worth around $781,000, making STRK his most valuable token outside of ETH. As StarkNet approaches the launch of its staking protocol, these developments mark a significant step in the network’s decentralization journey.

StarkNet is preparing to introduce a permissionless on-chain staking protocol, complete with stake delegation. This upcoming feature will allow anyone holding STRK to contribute to network security while earning rewards. The first phase of staking is set to go live in Q4 2024, offering the community an opportunity to engage with the network in a new and meaningful way.

The initial phase of staking is designed to lay the foundation for the protocol, ensuring a smooth and secure rollout. Participants can join as either Stakers or Delegators.

Stakers, who are required to run a full node and stake at least 20,000 STRK, will play a crucial role in maintaining and securing the network.

Delegators, on the other hand, can simply delegate their tokens to a chosen staker through a straightforward transaction on the official user interface or other decentralized application UIs.

StarkNet’s Notable Staking Protocol Feature

One of the key features of StarkNet’s staking protocol is its reward system, which is based on a minting curve.

As more STRK tokens are locked in the staking protocol, the rewards decrease, balancing the incentive to stake with the need to maintain the network’s economic security.

Staking on StarkNet is not just about earning rewards; it represents a significant step towards the network’s decentralization. Stakers will eventually take on critical responsibilities, including producing, attesting, and proving blocks.

Voting on the staking proposal is set to begin in September, with the mainnet staking expected to launch in October 2024. This initiative promises to be a game-changer for StarkNet, further solidifying its position in the decentralized finance landscape.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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