- Minting Curve Mechanism
- Authority to Adjust Minting Parameters
- Community Feedback
The Starknet community has overwhelmingly voted to implement a proposed new staking mechanism, including a dynamic minting curve for STRK tokens.
Minting Curve Mechanism
The minting curve feature is central to the now-approved proposal, introducing a minting curve based on Professor Noam Nisan’s “Proposal 2” with slight modifications. This feature allows STRK token supply adjustment according to staking participation rates to control 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.
Authority to Adjust Minting Parameters
The Starknet Foundation, or a designated monetary committee, will be able to modify the minting constant (C) within a range of 1.0 - 4.0. This authority adjusts the minting parameters to lower the C if staking levels become too high or to raise it to incentivize staking if participation falls too low. Adjustments must follow a strict process to maintain transparency, requiring changes be publicly announced and explained on the community forum two weeks before the change.
Community Feedback
Although community feedback was largely positive, with many expressing support for the balanced approach, 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 this new minting curve integration, the network could see improved activity and engagement levels as incentives become adjustable based on user participation in staking.
The introduction of a new staking mechanism and a dynamic STRK minting curve is a significant step for Starknet. It allows better control over token inflation and incentivizes staking participation, which can substantially impact network activity and engagement in the long term.
