Introducing Bitcoin (BTC) staking represents a major joining of Bitcoin’s security with DeFi innovations on Starknet, Ethereum’s Layer-2 scaling solution. Stakeholders will be able to stake and earn network rewards for their BTC in the mainnet that generally launches on September 30.
Bitcoin’s staking power is set at one-quarter in this new setting, which means that Bitcoin contributes 25% of the consensus weight of the network, with the native token of Starknet, STRK, supplying the other 75%. It is a hybrid model to further decentralization and security, and gives a clear voice to BTC in network governance.
Starknet has also expanded accessibility by supporting several wrapped Bitcoin tokens, including WBTC, LBTC, tBTC, and SolvBTC, allowing a wide range of BTC holders to participate.
A key improvement is the reduction of the unstaking period from 21 days to just 7 days, giving investors faster access to their funds while maintaining network safety.
The DeFi world got much bigger with Bitcoin staking getting launched on Starknet, as it brings together two major ecosystems in crypto. For the first time ever, BTC owners can stake on Starknet without having to give up their assets, blending Bitcoin’s trustworthiness with Ethereum’s Layer-2 flexibility.
This development could appeal to both retail and institutional investors, who are seeking new ways to generate yield from their Bitcoin holdings. Faster withdrawal times, greater security, and low-risk participation make the offering particularly attractive.
The upgrade was approved through the SNIP-31 governance proposal, with an overwhelming 93.6% community support. The high approval rate reflects the confidence of the community in this upgrade and reaffirms Starknet’s commitment to decentralized decision-making.
BTC staking on Starknet has various benefits:
While its potential is exciting, the new staking model is not without challenges. Users will need to be careful while staking to maintain accuracy and not miss out on rewards. The accumulation of BTC on Starknet will also stress the network’s stability and security.
Regulatory scrutiny also remains a key factor. Staking frameworks may face changes depending on jurisdictional rules, which could influence adoption rates in the future.
Starknet’s move to integrate Bitcoin staking could serve as a blueprint for other Layer-2 networks. Successful implementation can speed up the wider adoption of BTC in DeFi, providing new opportunities for holders and advancing blockchain development.
By lowering the hurdles and incentivizing engagement, Starknet is opening up possibilities for Bitcoin users to venture into DeFi and, at the same time, contribute to securing its own network. This is a significant step in the development of both Bitcoin and Layer-2 solutions.
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