Bitcoin Staking on Starknet Enabled by SNIP-31 with 25% Cap
On August 21, Starknet’s community approved SNIP-31 with 93% support, enabling Bitcoin staking on the Layer 2 network. Wrapped BTC tokens — WBTC, LBTC, tBTC and SolvBTC — can now be staked to claim up to 25% of consensus power, while STRK maintains a 75% share. Additional BTC incentives will be issued without diluting existing STRK rewards. The feature is slated to launch in the coming weeks and operates independently of BTC/STRK exchange rates to reduce systemic risks.
Concurrently, Starknet will roll out version 0.14.0 on September 1. The upgrade introduces Tendermint consensus for decentralized sequencing, faster pre-confirmations and an EIP-1559 fee market. Despite the positive outlook for Bitcoin staking and DeFi growth, STRK dropped 6.2% on announcement day, suggesting traders await the live deployment before repositioning.
Bearish
Although the approval of SNIP-31 and launch of Bitcoin staking enhance STRK’s utility and long-term demand, the 6.2% drop in STRK on announcement day reflects immediate bearish sentiment. Traders are likely to await the feature’s live rollout and its performance under the new governance framework. Short-term volatility remains elevated due to uncertain timelines and potential systemic risks, outweighing the positive fundamentals for now.