What is vSTRK?

What is vSTRK? Starknet Voting Governance

SUMMARY

What is STRK Staking?What is sSTRK?Benefits of STRK StakingHow to Get Started with STRK StakingOther earning strategies on NimboraAdditional resourcesAbout Nimbora

As you may already know, we already talked about STRK and sSTRK tokens.

TL’DR:

  • STRK is a native token of Starknet network and it is required for paying fees on it. Starknet (developed by Starkware) is a decentralized, permissionless Layer 2 rollup built on Ethereum leveraging cryptographic protocols known as STARKs to enhance scalability without compromising core principles like decentralization and security.
  • sSTRK is Nimbora yield-bearing token that represents a financial instrument within the Nimbora ecosystem, specifically designed for those holding STRK.

But as of Sept 10, we also have vSTRK. And now you’re probably wondering — what is that all about now?!

Beginning of the STRK staking minting curve vote

A few days ago Starknet announced the beginning of the STRK staking minting curve vote, which will take place from Sept 10–13, 2024. This voting process will allow all STRK token holders to participate in determining the minting curve for staking rewards on the Starknet network, marking a significant step towards its decentralization by enabling community governance over staking mechanisms.

What is vSTRK?

vSTRK (voting STRK) is a special token used for governance on Starknet. Users must wrap their native STRK tokens into vSTRK tokens to participate in governance votes. This conversion locks the STRK tokens in a smart contract, enabling voting rights for the holders in Starknet’s governance decisions.

The governance framework allows community members to propose, debate, and vote on network decisions. This system is designed to evolve and support protocol upgrades progressively.

    Gradual Starknet Staking Implementation

    • Stability First: The goal is a reliable Proof-of-Stake (PoS) mechanism for the long term.
    • Phased Rollout: Features will be introduced in manageable milestones.
    • Continuous Refinement: This approach allows for issue resolution and participant adaptation.

    Holders of vSTRK

    Holders of vSTRK can either vote on proposals directly or delegate their voting power to others. This system enhances flexibility in participation and decision-making in the network’s governance.

    When you wrap your STRK to vSTRK, the following process takes place:
    1. The amount of STRK that you specify is transferred to the vSTRK contract, where it is locked.
    2. vSTRK is minted, at a 1:1 ratio to the amount of STRK that is locked.

    And when you unwrap vSTRK, the following process takes place:
    1. The amount of vSTRK that you specify is burned.
    2. The corresponding amount of STRK is released from the vSTRK contract.‍

      * If you want to participate in voting and delegating on the Starknet network, go to the Governance Hub: https://governance.starknet.io/manage-vstrk

      Starknet Voting Governance

      Starknet’s governance is part of its broader goal for full decentralization!

      The governance mechanism itself is progressively evolving, with key governance actions, including voting, being conducted entirely on-chain to ensure transparency and security.

      This governance model underscores Starknet’s commitment to maintaining a decentralized network that aligns with Ethereum’s principles while integrating new technologies for scalability and efficiency.

      For more detailed information, you can visit the Starknet governance page here.

      If you want to learn more about Starknet staking, check out this STRK Staking 101: Everything You Need to Know guide.

      For an official overview and guidance through Starknet staking documentation, visit here.

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        Starknet Staking: Additional resources

        About Nimbora

        Nimbora is a Starknet-based omnichain 1-click yield strategy platform that enables users to engage with Layer 1 protocols at a fraction of the cost. Discover the best of Ethereum protocols and optimize your DeFi strategies with Nimbora.

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