Starknet has become the first major layer-2 blockchain running on top of Ethereum to let users earn money by staking their tokens and validating transactions.

The feature is intended to help decentralize the auxiliary network and has been in the works for a while. Starknet’s main developer firm, StarkWare, formally proposed the change to the community in July.

Now, anyone who has at least 20,000 STRK tokens (roughly $12,000 at recent prices) can pledge the asset as collateral and earn rewards for validating transactions. Users with less than 20,000 STRK can delegate their tokens to validators to stake on their behalf. (Validators that behave maliciously or neglect their duties stand to forfeit staked tokens.)

Validators and delegators that want to withdraw staked tokens must wait 21 days to receive them as well as any rewards earned from staking.

Starknet is following in the footsteps of the main Ethereum chain, which completed a long transition to the proof-of-stake consensus mechanism in 2022.

“It took Ethereum three years to get this right. It’s also going to take us time

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Author: Margaux Nijkerk