Starknet’s STRK Up 15% In Past Week Ahead of First Community Governance Vote

STRK, the governance token for Starknet, has risen roughly 15% over the last seven days ahead of a Tuesday vote by the protocol’s governing body on whether to implement a minting curve mechanism for new STRK tokens. Of the top 100 tokens by market cap, STRK is the third-best performer in the past week, behind SUI and QNT. 

Starknet is a layer 2 network on Ethereum focused on zero-knowledge technology. 

If passed, the minting curve mechanism would balance staking rewards with inflation management by enabling “dynamic adjustment of the token supply in response to staking participation rates,” according to the governance proposal. 

STRK, which is used to pay for network fees and provides governance rights for holders, has remained stable in the last 24 hours at 42.5 cents, per CoinGecko. The overall crypto market has increased 2.1% over that same time period. 

Voting on the governance proposal comes nearly two months after Natan Granit, a product manager at StarkWare introduced details of the first stage of staking in Starknet’s discussion forums. Starkware is the software firm behind the L2.

Read More: StarkWare Proposes Staking Plans in Incremental Steps for L2 Network Starknet

Staking refers to users locking up their tokens to secure a blockchain network. Users who stake earn rewards for helping the network maintain its integrity. 

The governance proposal discusses two ways to adjust the STRK minting curve. The first would come from a monetary committee created by the Starknet Foundation, the nonprofit tasked with developing the network’s ecosystem. The second way would be to have the Starknet Foundation directly adjust the minting curve based on whether too much STRK is staked, or too little. 

Several wallet addresses have expressed support, including yurkachuma.eth, who indicated that they would vote in favor of the proposal. However, one address which goes by satsgas.eth questioned the two proposed ways of adjusting the STRK minting curve, expressing the lack of trust in the Starknet Foundation, suggesting that adjustments should come as a result of a governance note.