Starknet Launches Bitcoin Staking And STRK Fund

Layer2 community Starknet has introduced a number of new initiatives, together with Bitcoin staking and a 100 million STRK incentive program. Different initiatives embrace an institutional-grade BTC yield product. Staking permits holders to stake their BTC on Starknet with out relinquishing custody and earn rewards whereas contributing to the community’s safety. Bitcoin Staking Is Stay On Starknet Starknet has formally launched Bitcoin staking, together with a 100 million STRK fund to spice up the BTCFi ecosystem. The challenge describes its Bitcoin staking initiative as the primary trustless method BTC may be staked on a Layer 2 community. The initiative permits holders to earn rewards whereas sustaining custody of their belongings, and helps safe the community. 
“Bitcoin doesn’t change. However what you are able to do with it's simply what you probably did. From the June 2024 announcement that Starknet would scale Bitcoin to the product rollouts of March 2025, the trail has been clear. BTCFi on Starknet is the place that momentum now leads.”
The staking mechanism doesn't alter Bitcoin’s base layer, which makes use of a Proof-of-Work consensus mechanism and doesn't assist staking. Starknet’s staking initiative makes use of wrapped variations of BTC, together with WBTC, tBTC, Liquid Bitcoin, and SolvBTC. These may be delegated on Starknet and might take part in Starknet’s consensus together with the STRK token after an on-chain vote. The tokenized holdings are secured by zk-STARK cryptography, offering post-quantum safety. StarkWare CEO and co-founder Eli Ben-Sasson launched a press release, stating, 
“Final 12 months, I stated Starknet would unleash Bitcoin's energy. At present we're making good on that promise … bringing worth to bitcoin holders with no loss in belief. For me, it is two desires converging. The ZK-tech that I willed into existence, merging with Satoshi's imaginative and prescient that you just personal your life, now you get actual yield, actual consensus powered by your personal bitcoin.”
STRK Initiative The Starknet Basis additionally introduced the allocation of 100 million STRK ($12 million) to assist the BTCFi ecosystem on Starknet. This contains incentivizing borrowing towards BTC to make Starknet probably the most cost-effective avenue for utilizing Bitcoin as collateral and powering yield methods. Ben-Sasson added, 
“Bitcoin is one of the best type of collateral. Everybody from Saylor to Wall Road now realizes this, however I would like you to have the ability to borrow towards it after which make investments what you are borrowing.”
BTC-Denominated Yield Product Digital asset funding agency Re7 Capital has introduced plans to launch a BTC-denominated yield product on Starknet in October. The technique is designed to generate returns instantly in BTC by a mixture of off-chain derivatives buying and selling, curated DeFi yield methods, and participation in BTC staking on Starknet. The fund will even be accessible in a tokenized format, making it accessible past skilled traders. 
“When an funding agency with a robust on-chain monitor file of Re7's calibre brings its bitcoin product to Starknet, it’s a transparent declaration of the community's nice promise.”
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