Starknet will introduce bitcoin staking to its Ethereum Layer 2 network after the community ratified SNIP-31 with 93.6% of voters supporting the move, according to the project’s official forum.
Starknet is a Layer 2 scaling solution for Ethereum, using zero-knowledge proofs, with STRK as its token.
Under the parameters approved by tokenholders, bitcoin’s staking power weight is set at 0.25, giving BTC up to 25% influence in total consensus power. The balance allocated to Starknet’s STRK, the team said on X. “The official launch will take place in the coming weeks,” they added.
The community initially approved BTC wrappers, including Wrapped Bitcoin, Liquid Bitcoin, tBTC, and SolvBTC. The upgrade is slated to go live in the coming weeks, making bitcoin—via approved tokenized representations—part of Starknet’s staking set. Governance rules for evaluating and admitting new BTC wrappers are now codified, providing a framework to adapt as the tokenized-bitcoin market evolves, the team said.
Starknet, a zero-knowledge Layer 2 rollup built with STARK proofs, has been pushing toward a broader “multi-asset” staking model in parallel with efforts to grow its developer base and app ecosystem. The network recently highlighted tooling expansions for app-specific chains via the SN Stack and has explored bringing additional reserve assets into its economic design.
Adding BTC into staking fits a broader industry trend to mobilize bitcoin liquidity in DeFi while balancing bridge and custodian risks that come with wrapped assets. Protocols like BTC staking protocol Babylon, BTCfi on Sui, which enables BTC holders to earn yield on their holdings, and Stacks, a Layer 1 network secured by bitcoin, tout themselves as channels for porting idle sats into decentralized finance.
Allowing multiple representations at launch could diversify technical and custodial risk across wrappers, while the 25% cap is meant to keep STRK central to network security and governance.
Once live, holders of the approved BTC wrappers will be able to delegate or stake those assets on Starknet alongside STRK to participate in the network’s security and earn protocol rewards according to final parameters set at launch.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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