Starknet Launches Bitcoin Staking Feature
Starknet, an innovative layer-2 solution utilizing zero-knowledge proofs on Ethereum, is set to launch its Bitcoin staking feature on its mainnet by the end of the month, specifically on September 30, 2025. This development comes as Bitcoin continues to gain momentum in decentralized finance (DeFi), and Starknet’s team believes this feature will be crucial in fulfilling their BTCfi campaign.
Commitment to DeFi Growth
The announcement marks a continuation from a prior update shared in August and indicates Starknet’s commitment to facilitating the growth of DeFi on the Bitcoin network. They have established parameters for Bitcoin staking, including a consensus weight set at 0.25 for Bitcoin, allowing it to dominate the network’s consensus up to 25%, while the remaining 75% will be represented by their native token, STRK.
Enhanced User Flexibility
Once the upgrade is live, validators and builders will be able to create Bitcoin delegation pools, enabling Bitcoin holders to start earning rewards. Importantly, the platform has reduced the unstaking period significantly from 21 days to just 7 days, which enhances flexibility for users.
Community Support and Integration
This feature rollout comes on the heels of a community governance proposal that passed overwhelmingly, securing over 93% approval from voters, thereby paving the way for Bitcoin holders to stake their assets and reinforce network security while earning rewards in return.
Support for Tokenized Bitcoin Assets
Notably, this enhancement not only introduces Bitcoin staking but also integrates support for tokenized Bitcoin assets, including wrapped Bitcoin options like WBTC, LBTC, and SolvBTC. This move aligns with other existing initiatives such as Babylon and Stacks, which also aim to enable users to leverage their idle Bitcoin assets for rewards within the decentralized finance framework.
Growing DeFi Landscape
Recent statistics from DeFiLlama reveal that the total value locked in DeFi protocols associated with Bitcoin has reached a staggering all-time high of over $8.4 billion, reflecting a notable increase of more than 8% in just the past day, largely driven by restaking activities on Babylon. Other prominent protocols in the BTCfi space include Lombard Finance, Threshold Network, Lightning Network, and Solv Protocol, marking a significant advancement in the use of Bitcoin in decentralized finance.
