- Starknet begins Bitcoin staking integration with BTC making up 25% of its consensus power.
- Supported assets include WBTC, tBTC, SolvBTC, and LBTC, with more wrappers expected through governance.
- Unstaking time has been reduced from 21 days to 7 days for BTC and STRK stakers.
Starknet has confirmed through a tweet the start of a long-awaited Bitcoin (BTC) staking integration, marking one of the most important milestones in its network development this year. The protocol briefly paused staking services to install the upgrade, which now allows Bitcoin holders to participate directly in Starknet’s consensus.
In this setup, Bitcoin (BTC) staking carries a weight of 0.25, giving BTC holders 25% of the total consensus power, while STRK accounts for the remaining 75%. At launch, the system will support various forms of wrapped Bitcoin, such as tBTC, LBTC, WBTC, and SolvBTC, with new additions to follow after through community governance.
By opening its doors to Bitcoin (BTC) liquidity, Starknet aims to expand participation and build stronger ties between Bitcoin and DeFi applications. This marks a shift in strategy that positions the network as a meeting point for two of the largest forces in the crypto market: Bitcoin’s liquidity and Ethereum-based scalability.
Starknet Reduces Unstaking From 21 Days to 7 Days, Giving Stakers Greater Flexibility in Fast Markets
One of the most noticeable improvements introduced with this upgrade is the dramatic reduction of the unstaking period. This means that STRK and Bitcoin holders will no longer have to wait for 21 days to access their tokens, as the waiting time has now been reduced to 7 days. This development is significant, as it makes staking more scalable and fitting given how fast-paced the crypto space has become.
For traders, shorter exit times can be the difference between catching a profitable opportunity and missing it entirely. The updated model also makes Starknet’s staking system more appealing to cautious participants who want the rewards of staking without being locked out of their liquidity for too long. Over time, this could lead to higher total value locked (TVL) within the protocol, strengthening Starknet’s position in the competitive layer 2 ecosystem.
Bitcoin Staking on Starknet Could Reshape DeFi by Bringing Liquidity into New Applications and Services
The integration of Bitcoin staking has implications far beyond consensus mechanics. By giving BTC holders a role in Starknet’s network, the platform also creates a pathway for DeFi developers to tap into Bitcoin’s enormous liquidity base. This could lead to the creation of new lending protocols, yield strategies, or derivative products powered by BTC within Starknet’s environment. In effect, the update bridges Bitcoin (BTC) stability with Ethereum’s smart contract flexibility, potentially sparking fresh innovation across DeFi markets.
Market reaction was quick, with STRK gaining over 7% shortly after the announcement and trading volumes surging by more than 38%. While most community responses have been positive, a few concerns were raised, including whether Bitcoin (BTC) staking could dilute the role of STRK in governance. Despite such criticism, the broader sentiment suggests that the upgrade is a net positive for both stakers and developers.
On the other hand, the US Spot Bitcoin ETFs recorded a total amount of 20.5K BTC in inflows last week. This amounted to an equivalent of $2.3 billion, signaling an institutional stance on Bitcoin (BTC). In spite of this, BTC price traded around a close range over the weekend, with the price consolidating around the $115,000 mark. However, its price has retraced slightly by 0.99% to trade around $114,951.84. Monday, before the end of today, the price could bounce back to its weekend’s price.
By giving Bitcoin (BTC) holders a direct stake in Starknet’s success, the network is carving out a unique position in the ongoing expansion of decentralized finance.
