Starknet Staking Rewards Are Live

FAQs

• What is Bitcoin staking on Starknet?

  Bitcoin staking on Starknet allows BTC holders to lock tokenized BTC (BTC wrappers) on Starknet and earn rewards in STRK. It’s a new way for Bitcoin to actively participate in securing Starknet. In exchange for providing this security, staked Bitcoin generates yield for holders.

  Previously, Starknet has been secured by staking STRK. The launch of Bitcoin staking enables an additional option for stakers to provide security and earn rewards.

• How do BTC holders earn rewards?

  BTC stakers delegate their tokenized BTC to validators. In return, they earn STRK rewards, proportional to their stake and the validator’s performance in consensus duties (like block attestations).

  The specific steps required to stake depend on which wallet and interface you use. Please see our staking tutorial for more details.

• What kinds of Bitcoin can I stake?

  You can stake wrapped versions of BTC available on Starknet. At launch, the protocol expects to support wrappers like WBTC, tBTC, and SolvBTC. Each wrapper will have its own delegation pool for each Validator, and you always withdraw the same wrapper you originally staked.

• Can I get a Liquid Staking Token (LST) for my staked BTC?

  Yes. From day one, BTC staking will support LSTs by Endur. This means you’ll receive a tokenized representation of your staked BTC, which can then be used across Starknet DeFi (lending, trading, yield farming, etc.) while still earning staking rewards.

• Are there looping strategies for BTC?

  Yes, Troves will have a Staking looping Vault and Strategy.

• Where/how can I stake my BTC?

  You’ll be able to stake BTC directly through:

  • Wallets: Braavos, Ready and Keplr (with staking integrated in-app).
    
  • Dashboards: Endur, Voyager, and other ecosystem dashboards.
    
  • Liquid staking protocols (LST): Endur and Troves with access also through Avnu.
  • Custodians: Support is coming soon for institutional custodians.

  This ensures both retail and institutional BTC holders can participate easily.

• How is staking power calculated when BTC is included?

  Validator staking power is based on both STRK stake and BTC stake, with STRK having 75% of total staking power while BTC has 25% of total staking power (α = 0.25). This ensures BTC helps strengthen Starknet while STRK remains the anchor of governance and control.

• Will BTC staking reduce APR for STRK stakers?

  No. STRK stakers’ APR remains unchanged. BTC rewards are funded by slightly increasing total STRK inflation, so STRK holders keep their same rewards while BTC stakers get additional ones.

• When do I collect my rewards?

  Your STRK rewards will accumulate continuously. You can also choose to stake these STRK rewards, should you want.

• What factors determine Bitcoin’s APR?
  • STRK/BTC exchange rate – Since rewards are distributed in STRK, the value of rewards for BTC stakers depends on this rate linearly.
  • The total amount of STRK rewards minted – BTC stakers receive a fixed fraction (α) of total minted STRK, so more STRK minted means higher BTC rewards. This is also a linear dependency.
  • Amount of BTC staked – Since BTC stake doesn’t affect STRK minting, more BTC staked means rewards are split among more participants, reducing APR.

  You can see these dependencies in the formula for the Bitcoin APR:

  (α⋅T⋅(M/100)⋅(STRK_price/BTC price))/B

  Where B is the total Bitcoin stake, M is the minting rate in percentage, and T is the total supply of STRK.

  Note that BTC stakers have a strong interest in increasing the total STRK staked in the protocol, either by compounding rewards or allocating extra STRK’s to the protocol. A higher STRK stake increases the total amount of STRK minted (even if the rewards rate for STRK decreases), which in turn boosts BTC rewards. This creates a beneficial alignment between BTC Stakers and STRK staking.

  You can check specific examples in the Bitcoin staking SNIP.

• Does BTC staking weaken Starknet’s security?

  No. Including BTC as a stakable asset should increase the value staked to secure Starknet, further enhancing Starknet’s security characteristics. Even if an attacker controlled all BTC stake, they’d still need at least 12% of STRK stake to censor the network (vs. 34% without BTC). The cost of acquiring both BTC and STRK is higher, so economic security is enhanced overall.

• How does BTC staking help Starknet?
  • Cost-Efficient Security: Including BTC as a stakable asset should increase the total value staked on Starknet, increasing overall security. Since Bitcoin is seen as low-risk capital, it can be staked at lower yields, reducing the cost of securing Starknet.
  • Utility: Unlocks a new use case for BTC.
    
  • Composability: Since staking is built entirely on Starknet, BTC stakers can benefit from DeFi integrations and liquid staking tokens (LSTs).
• What is a Proof-of-Stake protocol?

  A Proof-of-Stake (PoS) protocol is a common method of achieving consensus among distributed operators in a decentralized network. A Proof of Stake (PoS) protocol is one that secures a decentralized network by having participants lock up their tokens. In return, they earn rewards for helping to keep the network safe and decentralized. You can learn more about staking and its role in blockchain in this blog post.

• Why is Starknet introducing a staking mechanism?

  A staking mechanism is another major step toward Starknet becoming a fully decentralized PoS L2 network. Future steps will include validators getting full responsibility for maintaining and securing the network and gradually being assigned to produce blocks, attest to blocks, and prove blocks as part of Starknet’s consensus protocol. 

• Why is the staking protocol implementation gradual?

  We aim for a long-term, stable, and reliable PoS mechanism. Staking is crucial for the network’s stability and security. Therefore, it requires comprehensive testing and validation. A gradual transition ensures careful implementation and integration. This approach allows for refinement and issue resolution as they arise, and it gives network participants time to adapt, maximizing stability during the transition.

• Who can stake?

  All community members and STRK holders can participate in Starknet staking either as a validator or as a delegator.

• What rewards will Bitcoin Stakers get?

  Rewards for Bitcoin Stakers will be in STRKs.

• Why is Staking v2 important?

  Staking v2 is a foundational upgrade in Starknet’s journey toward a more decentralized and economically sustainable protocol. It directly addresses critical gaps identified in Staking v1, aligning with the goals outlined in SNIP 18.

  1. Advancing Decentralization

  Decentralization is a core requirement for any public blockchain. Today, Starknet Validators are required to run full nodes, but their performance is not yet verifiable in a public and trustless way. Staking v2 introduces block attestation, enabling public measurement of Validator performance and reliability. This is a crucial step toward holding Validators accountable and preparing for a future where protocol security is governed by transparent, community-driven mechanisms.

  1. Refining Economic Incentives

  Analysis of the current stake distribution and insights from Staking v1 highlight a need to strengthen the incentive structure. One key improvement in Staking v2 is the ability for Validators to increase their commission from delegators. This added flexibility allows for more sustainable Validator operations and fosters a healthier, more competitive staking ecosystem.

• What is the minimum staking amount required?

  A validator must stake a minimum of 20K STRK and run the full node validator package.

  There is no minimum amount a delegator needs to stake or delegate.

• Is there a lockup period for staking?

  Yes. If validators or delegators decide to unstake their tokens, they must wait a 21-day lockup period to receive their tokens. During this time, they will not earn staking rewards and cannot withdraw their funds. This measure is in place to ensure the network’s security and stability. Delegators can, however, change their delegated validator at any time without a lock-up period.

• How are the rewards issued?

  Rewards come from new token minting and are distributed proportionally to levels of participation and contribution and according to Starknet’s minting curve. 

  The minting curve dictates how new tokens are created and distributed to validators. It reacts to the market: The more STRK tokens staked, the higher the inflation, and the lower the staking rewards. If less STRK is locked, inflation will be lower, and rewards higher.

  The goal is to strike a balance between incentivizing participation and maintaining sustainable inflation while keeping sufficient STRK for other network activities. Under the initial parameters, inflation will be kept under 1.6%.

• Will StarkWare participate in staking?

  Yes, as part of Staking v2, StarkWare has launched a delegation program and is running a validator. You can learn more about the delegation program here and more about StarkWare’s involvement in staking during v2 here.

• Will locked investor tokens participate in staking?

  Locked tokens will also initially be excluded from staking for the time being.