StarkNet launches Bitcoin staking with multiple BTC wrappers, reducing unstaking time to 7 days, boosting Layer 2 DeFi inclusion and decentralization.
In a major update for the decentralized finance (DeFi) space, StarkNet has officially launched Bitcoin staking support on its network. The upgrade, which went live today, gives holders of BTC the possibility to actively participate in the network consensus and receive rewards. This is a major development in bringing Bitcoin into the wider Layer 2 ecosystems.
StarkNet Updates Consensus: BTC Staking Gains 25% Weight
On StarkNet, users of the Bitcoin network have their assets available in different wrappers for the first time. These are WBTC, LBTC, tBTC, SolvBTC. These wrappers are used for staking on chains of ethics-compatible networks and enable the staking of Bitcoin without bringing BTC directly to Ethereum.
Related Reading: Starknet Becomes First L2 to Unify Bitcoin and Ethereum | Live Bitcoin News
More importantly for the economic integration, it allows Bitcoin holders now a chance to contribute to StarkNet’s consensus mechanism. According to the updated protocol, BTC staking now constitutes of the weight 25%, with STRK tokens accounting for 75% of the consensus power. This blended model produces a more diverse and inclusive base of validators.
In addition, validators are now able to deploy BTC delegation pools – e.g. to stake their own Bitcoin via professional operators. Builders and developers are also encouraged to start integrating Bitcoin staking tools from today as well. This move is predicted to bring more development activity into StarkNet and attract a broader base of users.
Although the upgrade is live staking rewards will officially start on September 30. This provides time to prepare for users and time to complete integrations by developers. Once rewards are on it, BTC stakers will start earning similar yields as STRK stakers.
One of the most user friendly features implemented for this update is the reduced unstaking time. Previously, the timeframe on the platform for unstaking was 21 days, which is a popular one in DeFi. However, StarkNet has now shortened this time to only 7 days, for both stakers of STRK and BTC. This change therefore makes it easier for the users to access their funds, and improves overall liquidity.
Bitcoin Staking on StarkNet Enhances Layer 2 Ecosystem Inclusion
The Bitcoin staking feature was voted while in beta under a governance in the community, with 93% voting in favor. This strong support shows the high level of trust and interest from the community. In addition, it attests to StarkNet’s dedication to continuing decentralization and community-driven development.
Governance- the role of governance in shaping DeFi platforms is still significant today. StarkNet’s recent decision comes on a growing trend of having the users give more control on how protocols are evolving. This not only works to increase transparency but to engage users (and validators and developers alike), for the long term.
With the addition of Bitcoin staking finally available, StarkNet is positioning itself as one of the few Layer 2 staking solutions that would allow direct involvement in the process for BTC holders. This could positively contribute to filling the gap between the massive liquidity of Bitcoin and the dynamic DeFi ecosystem of Ethereum.
In conclusion, the launch of Bitcoin staking on StarkNet is more than just a technical upgrade – it is a strategic move towards increased interoperability, user inclusion, and network decentralization. By making it possible to stake using multiple BTC wrappers, and reducing unstaking time delays, StarkNet is making the process of staking more flexible, faster, and more accessible.
