StarkNet Integrates Bitcoin into Staking Ecosystem
StarkNet has officially integrated Bitcoin into its staking ecosystem, allowing holders of BTC to join in the network consensus and earn rewards starting September 30. The recent upgrade, which went into effect today, introduces a framework where Bitcoin will represent 25% of the network’s overall staking power, while StarkNet’s own token, STRK, will maintain the remaining 75% share.
Supported Bitcoin Wrappers
At this initial launch, supported Bitcoin wrappers include Wrapped Bitcoin (WBTC), Liquid Bitcoin (LBTC), tBTC, and SolvBTC. There is also potential for more wrappers to be added in the future through community governance.
Community Approval and Security Protocols
This enhancement comes after the StarkNet community approved the StarkNet Improvement Proposal 31 (SNIP-31) on August 21, with an overwhelming 93% voter approval. SNIP-31 established guidelines for the co-functionality of BTC and STRK within the network’s consensus mechanism, ensuring BTC would not exceed its predetermined stake. Additionally, it laid out security protocols for the wrappers and staking process, aimed at providing a reliable service.
Improved Unstaking Period and Validator Features
As part of this upgrade, the period for unstaking has been significantly reduced from 21 days to just 7 days, giving users increased flexibility in accessing their assets. Validators are now able to set up Bitcoin delegation pools, while developers are encouraged to adopt this new feature promptly.
Growing Trend in Cryptocurrency Ecosystem
This move to allow Bitcoin staking is reflective of a growing trend in the cryptocurrency ecosystem, known as BTCfi, where Bitcoin is leveraged for decentralized finance (DeFi) activities beyond mere holding or trading. Transactions involving Bitcoin in DeFi are becoming more commonplace for earning rewards and participating in governance.
Collaboration with Kraken
In tandem with this trend, Kraken has recently collaborated with Babylon Labs to offer direct Bitcoin staking services, enabling customers to stake their BTC and receive rewards in the form of Babylon’s native token, BABY, without the complications of wrapping or transferring their assets.
