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The altcoin project Starknet has initiated a staking period for Bitcoin $114,164 holders, allowing users to stake Bitcoin trustlessly on Layer 2 for the first time. This initiative is described as a “Bitcoin strategy for the OGs” by Starknet and enables users to earn rewards while contributing to the network’s security structure without relinquishing control over their assets.
Starknet’s Bitcoin Staking Model
Starknet’s newly launched system does not interfere with Bitcoin’s fundamental layer, maintaining Bitcoin’s proof-of-work structure while conducting staking operations through wrapped assets. Tokenized BTC forms like WBTC, tBTC, Liquid Bitcoin, and SolvBTC participate in the consensus process on Starknet alongside the STRK coin. The network’s security is reinforced by zk-STARK technology, presenting a standout infrastructure in post-quantum cryptography.
StarkWare’s CEO and co-founder, Eli Ben-Sasson, emphasized the objective of unleashing the power of Bitcoin, stating, “True yield and true consensus are now possible directly with our Bitcoin.” He believes that Bitcoin protecting another decentralized network brings the ethos of the crypto world to different spheres. Approved through on-chain voting in August, this change marks one of the initial stages of Starknet’s vision to integrate Bitcoin into its long-term roadmap.
BTCFi Ecosystem
The Starknet Foundation has allocated 100 million STRK valued at $12 million with current prices to strengthen the BTCFi ecosystem. This incentive intends to make borrowing against Bitcoin appealing, positioning Starknet as the most cost-effective borrowing environment. Ben-Sasson noted Bitcoin’s power as collateral, aiming to facilitate both lending and new opportunity exploration for investors.
Additionally, crypto investment firm Re7 Capital plans to launch a Bitcoin-based yield product on Starknet in October. The plan is to offer returns directly in BTC through derivative trades, selected DeFi opportunities, and participation in Starknet’s BTC staking mechanism. Evgeny Gokhberg, founder of Re7, assured that investors would improve their assets sustainably while contributing to network security.
Starknet’s Bitcoin staking model, along with STRK incentives and Re7’s product launch, signals a new era as the Layer 2 network shifts focus from Ethereum $4,193 to Bitcoin. This sets Starknet on a course to become Bitcoin’s execution layer in the long term.
