Ethereum $2,344 Layer-2 scaling solution on StarknetIn an important step for the ‘s ecosystem, the proposal to launch the STRK coin staking program was overwhelmingly accepted. Starting from the fourth quarter of this year, addresses that own more than 20 thousand STRK coins will have the right to stake their assets on the Starknet network, which will be an important step towards increasing network participation and security.
A New Coin Minting Curve Will Be Implemented for STRK Coin
According to the details of the proposal published on the community management page, the staking mechanism is new STRK coinIt will bring a new coin minting curve for the ‘s. The mechanism, Professor Noah AprilIt is based on a proposal by and can be adjusted with minor parameter adjustments to suit the needs of the network. The compression curve is defined by the following mathematical formula:
In the formula Srepresents the staking rate expressed as a percentage of the total coin supply. Magain, shows the annual mintage rate expressed as a percentage of the total coin supply. Crepresents the theoretical maximum annual inflation rate, initially proposed to be set at 1.6 percent.
This is mathematical coin minting curve formulaThe implementation of will allow the coin supply to be dynamically adjusted according to the staking participation rates. This way, it is aimed to strike a balance between incentivizing holders to stake coins and effectively managing inflation in the ecosystem. A higher staking rate among participants will lead to a proportionally higher minting rate, rewarding those who contribute to the security of the network.
Two Options Are Being Discussed for Adjustments to the Coin Minting Curve Formula
Management of adjustments to be made to the coin minting curve formula Starknet Foundation It will be carried out by a monetary committee established by the foundation or by the foundation itself. It will have the authority to change the C constant within a range of 1 to 4 under certain conditions. Lowering C will be used in case of excessive staked STRK coins, which may lead to unwanted high inflation, while increasing C will be used in case of insufficient stake participation, in order to encourage more holders to stake their coins.
To maintain transparency and preserve community trust, any proposed changes to constant C will be publicly announced with a detailed justification. These announcements will need to be posted on the community forum at least two weeks before any changes are implemented. This planned protocol will ensure that community members are well informed and have the opportunity to discuss and understand the implications of such adjustments.
STRK coin staking programThe implementation of the . and related minting mechanism is considered a strategic move to increase the power of the Starknet network. By encouraging more coin holders to stake, not only will the security of the network be increased, but a more engaged and participatory community will be encouraged.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
