We are excited to share insights about Starknet's upcoming staking feature—a significant milestone that promises to enhance the network's security and decentralization.
Starknet, a leading Layer 2 scaling solution for Ethereum, is introducing staking to its network on November 26th 2024. This initiative stems from a proposal outlining the first staking stage on Starknet, which allows asset holders to participate in the protocol economic security by locking up their STRK tokens. In return for helping with network validation, they will earn staking rewards.
This is another milestone on Starknet's path to building a fully decentralized Proof-of-Stake protocol. This stage will give the Starknet community further responsibilities by allowing them to participate in securing the network while ensuring reliable block production and attestation for the best network stability and performance.
When live, the delegators will delegate STRK tokens to operators like Kiln to begin staking, similarly to other dPoS protocols. Delegators contribute to the network security and earn between 4.94% and 13.52% staking rewards. To prevent sudden large withdrawals and decreased economic security for the Starknet chain, there is a 21-day locking period without earning rewards upon exiting from staking.
This update will allow Starknet to test the network's economic incentive structure to balance staking rewards and inflation if needed. Initially, staking rewards will be based on a minting curve that regulates STRK emission to guarantee a certain level of economic security, meaning enough incentive to stake STRK, while ensuring there is always STRK available for transaction fees and network activity. The initial settings may be adjusted based on the staking ratio, circulating supply, and other parameters.
As a trusted node operator, Kiln is committed to supporting the launch of STRK staking by running validators that allow institutions and corporations to delegate as well as sharing valuable feedback and data with the Starknet team.
“As we approach the launch of staking on Starknet, we are glad to have Kiln supporting the network and enabling STRK staking, fostering more security and decentralization for Starknet. We’re looking forward to building our path to a complete Proof of Stake network alongside Kiln and the Starknet community.”
– Henri Lieutaud, Head of Developer Relations at Starknet Foundation
We'll assist in staking your STRK tokens or setting up the necessary infrastructure for staking if you want to offer Starknet staking on your platform.
The next Starknet update scheduled a few months after the release of staking will introduce validating and sequencing blocks for stakers. You can track and learn more about Starknet’s implementation progress on their repo.
About Kiln
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake assets and whitelabel staking functionality in their offerings. Kiln runs validators on all major PoS blockchains, with over $10 billion in crypto assets being programmatically staked and running over 4.5% of the Ethereum network on a multi-client, multi-cloud, and multi-region infrastructure.
Kiln also provides a validator-agnostic suite of products for fully automated deployment of validators and reporting and commission management, enabling custodians, wallets, and exchanges to streamline staking operations across providers. Kiln is also SOC2 Type 2 certified.
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