Proposal for StarkWare’s participation in Starknet staking mechanism during v2 - Feedback request
Introduction
As we approach the launch of Staking v2, we at StarkWare are considering how to participate in the Staking mechanism in a way that best supports the network. We want to share our thoughts and invite you to help refine the plan. We would sincerely appreciate your input.
Background
Alongside the gradual progress of the staking mechanism itself, we believe it’s equally important to foster the gradual evolution of participation in the staking mechanism - including growth in total stake, increased decentralization of consensus power, expansion in the number of active validators and delegators etc.
Naturally, a snapshot of the current state does not reflect the kind of stake distribution we aspire to. We’re confident that the relevant metrics will continue to improve gradully as the network and protocol mature. At the same time, we believe there are proactive steps we can take now to both improve the current distribution and encourage healthier long-term dynamics.
By participating in staking, StarkWare can help enhance Starknet’s resilience and security and promote better decentralization. The guideline for participating in staking in a way that benefits the network at this stage seem pretty straightforward: expand the Staking Pool while maximize broad and distributed allocation.
We’d love your feedback on the best way to implement staking during v2 in alignment with this guideline.
Initial thoughts on SW’s staking during V2 (~July - Dec 2025)
We are exploring participation on two fronts:
1. Broad Delegation Program
By gradually delegating STRKs across a broad set of eligible validators, we aim to:
- Expand the Staking Pool
- Improve the stake distribution
- Encourage participation from both new and existing players, especially smaller players
Distribution strategies
We’re currently exploring different delegation strategies. The core tension is between maximizing decentralization by favoring smaller validators, even at the cost of market neutrality, versus minimizing intervention, which may preserve existing concentration.
Some of the options under consideration include:
- Proportional matching allocation
- Stake is allocated proportionally, matching each participant’s delegated amount relative to the total. Participants who stake more receive a proportionally larger share.
- Capped matching with equal remainder distribution
- Stake is matched proportionally up to a predefined cap per participant. Any remaining stake beyond the cap is then distributed equally among all eligible participants.
- Equal allocation
- An identical stake amount is assigned to each participant, regardless of their individual delegation size.
Our current inclination for the first season of the delegation program is toward a flat, fixed amount per eligible validator, assuming they meet basic compliance requirements and a minimum level of operational performance. This approach is designed to encourage a more balanced stake distribution, support small validators, ensure fairness and simplicity in the allocation process, and apply minimal market intervention.
Requirements for Validator participation
- Basic compliance – KYC / KYB is mandatory
- 99% Liveness – Validators must maintain at least 99% uptime
- Maximum commission – capped at 10%
- Testnet validation – Active participation in the testing process of Staking V3, when applicable (Q4)
Ongoing operations
We view the program and its details as needing to evolve over time, especially during these initial stages. The approach should be experimental and adaptive, allowing us to learn and adjust.
To get things started, we’re considering opening a ~ two-week registration window, closing on July 1st. The first “wave” of delegations will then be executed. Following this initial phase, periodically re-evaluate new registrations and ongoing compliance with the criteria (e.g., monthly). Delegations will then be updated accordingly to reflect these ongoing assessments
2. Direct Validation
In parallel, we plan to begin participating directly by running a validator. This marks another step in Starknet’s ongoing journey of gradual decentralization, laying the foundation for a future where StarkWare is one among a broad set of validators operating the network. During v2, SW’s Validator will be capped at 10% of the total network stake and will be prevented from receiving external delegation.
Additional Implications
According to the minting curve, as the staking Pool grows, the reward per staked token decreases, as long as the parameter c remains constant. This mechanism is designed, among other things, to enable the gradual growth of participation in the protocol.
Given the Pool’s growth since launch, and our expectations for continued substantial growth during the v2 phase, we propose a slight increase to the value of c to maintain the current reward level.
A dedicated post addressing this topic will be published soon, and we’d greatly appreciate your thoughts on that in the dedicated proposal thread.
Just before you share your feedback
Before we wrap up, two important clarifications to keep in mind as you consider your feedback:
- Only the validator holds the consensus power derived from the delegator’s stake
- This proposal applies specifically to participation during the Staking v2 phase. As the mechanism evolves, StarkWare’s participation model will also evolve, adapting to the protocol’s future development and Starknet’s needs.
We’d love to hear your thoughts in the thread below.
Thanks!