Starknet Introduces Bitcoin Staking Integration Upgrade

StarkNet has rolled out an integration for Bitcoin staking, allowing BTC holders to engage in network consensus and earn rewards starting September 30.

Key Takeaways

StarkNet has officially integrated Bitcoin into its staking mechanism, effective from today.
BTC will contribute 25% of the network's staking power, while the native token STRK will contribute the remaining 75%.
Supported BTC wrappers include WBTC, LBTC, tBTC, and SolvBTC, with potential additions through governance.
The unstaking period has been reduced from 21 days to 7 days, providing greater flexibility.
This upgrade follows the approval of StarkNet Improvement Proposal 31, which facilitated the integration of Bitcoin into the network.

bitcoin staking

Introduction to Bitcoin Staking on StarkNet

StarkNet has successfully integrated Bitcoin into its staking system, enabling BTC holders to partake in network consensus and earn rewards. This significant upgrade was launched today and will allow rewards to commence on September 30.

With this new system, Bitcoin will account for 25% of the network's staking power, while StarkNet's native token, STRK, will make up the remaining 75%. Initially, users can stake wrapped Bitcoin options, including WBTC, LBTC, tBTC, and SolvBTC, with the community having the authority to introduce more wrappers through governance mechanisms.

Enhanced Flexibility for Stakers

One notable improvement is the reduction of the unstaking period from 21 days down to just 7 days, which offers stakers enhanced flexibility and quicker access to their funds. Additionally, validators are now able to deploy BTC delegation pools, allowing builders to integrate this feature seamlessly and immediately.

This development is a result of the StarkNet community’s endorsement of StarkNet Improvement Proposal 31 (SNIP-31) on August 21. This proposal received approval from 93% of voters and established a governance framework where BTC and STRK can operate together within the network consensus. Notably, it set a cap of 25% for BTC's staking power while ensuring that STRK retains majority control. It also defined rules for tokenized BTC wrappers and laid out security protocols to guarantee that the staking process functions consistently.

The Growing Trend of Bitcoin Staking

The launch of Bitcoin staking at StarkNet is part of the wider trend within the BTCfi ecosystem, wherein Bitcoin is increasingly utilized in decentralized finance (DeFi). This trend allows BTC holders not only to earn rewards but also to take part in governance and facilitate cross-chain applications, moving beyond traditional holding or trading methods.

Furthermore, in a related development, Kraken has recently teamed up with Babylon Labs to offer Bitcoin staking services. This partnership enables users to stake their BTC directly on the Kraken platform and receive rewards in the form of Babylon's native token, BABY, without needing to wrap or bridge their assets.

This rewritten article aims to provide clarity and accessibility for newcomers while maintaining the necessary information.