1. New Coin Minting Curve for STRK Coin
2. Two Options for Adjustments in Coin Minting Curve Formula
3. Maintaining Transparency and Community Trust

The proposal to initiate a staking program for the STRK coin, a significant step for the Layer-2 scaling solution on Ethereum, Starknet, has been overwhelmingly approved. Starting from the fourth quarter of this year, addresses holding over 20,000 STRK coins will have the right to stake their assets on the Starknet network. This move is expected to significantly enhance network participation and security.

New Coin Minting Curve for STRK Coin

According to details published on the community governance page, the staking mechanism will introduce a new coin minting curve for new STRK coins. The mechanism is based on a proposal by Professor Noam Nisan and allows for small parameter adjustments to meet network needs. The minting curve is defined by the following mathematical formula: S represents the staking rate expressed as a percentage of the total coin supply, while M indicates the annual minting rate, also expressed as a percentage. C represents the initially proposed annual maximum theoretical inflation rate, suggested at 1.6%.

Two Options for Adjustments in Coin Minting Curve Formula

The management of adjustments to the coin minting curve formula will be conducted by a treasury committee established by the Starknet Foundation or by the foundation itself. Under specific conditions, the authority to modify the constant C within the range of 1 to 4 will be granted. Lowering C will be utilized in cases of excessive STRK coin staking that could lead to undesirable high inflation, while increasing it will encourage more holders to stake their coins in cases of insufficient participation.

Maintaining Transparency and Community Trust

To maintain transparency and community trust, any proposed changes to the constant C will be announced to the public with a detailed rationale. These announcements must be published on the community forum at least two weeks before any changes are implemented, allowing community members to be well-informed and to discuss the implications of such adjustments.

The implementation of the STRK coin staking program and the related minting mechanism is viewed as a strategic move to strengthen the Starknet network. By encouraging more coin holders to stake, it aims not only to enhance security but also to foster a more engaged and participatory community.