BTC holders will earn rewards in STRK through supported wrappers like WBTC, LBTC, tBTC, and SolvBTC, boosting Starknet’s BTCfi ecosystem.
Starknet is preparing to roll out Bitcoin staking on its Layer 2 network after its community overwhelmingly approved Starknet Improvement Proposal 31 (SNIP-31) on August 21. The governance milestone marks a major step toward integrating Bitcoin into Starknet’s ecosystem and broadening opportunities in the fast-growing BTC DeFi (BTCfi) sector.
The proposal passed with 93% of voter approval, laying out a framework that allows Bitcoin holders to stake tokenized assets on Starknet and take part in its consensus process. Under the new system, Bitcoin’s staking influence will be capped at 25%, while Starknet’s native token (STRK) retains the majority with 75% of governance power.
The staking mechanism also introduces additional token issuance to incentivize Bitcoin stakers, while existing STRK rewards remain unchanged. Initially, only a limited set of wrapped BTC assets — including WBTC, LBTC, tBTC, and SolvBTC — will be eligible. Any future wrappers will require both community approval and validation by the Monetary Committee to ensure security and accountability.
By bringing Bitcoin into its staking model, Starknet aims to position itself as a central hub for cross-chain liquidity. The update enables Bitcoin holders to earn rewards in STRK, expanding DeFi participation without relying on BTC/STRK exchange rates. Developers noted that this independence reduces systemic risks and simplifies the staking process.
The move reflects Starknet’s broader ambitions to strengthen its DeFi ecosystem. The network recently launched the Extended perpetual trading DEX and announced a travel partnership with booking platform Travala, further expanding real-world utility for on-chain assets.
The Bitcoin staking initiative arrives as Starknet continues to enhance its core technology. On September 1, the network will deploy version 0.14.0, which introduces:
These upgrades aim to boost censorship resistance while making Starknet more efficient and scalable.
Despite the strong community support, STRK fell 6.2% on the day of the announcement, suggesting investors may be taking a cautious stance until the feature officially launches. Meanwhile, Bitcoin itself dipped slightly by 0.43%, showing muted short-term market impact.
Still, the approval of SNIP-31 positions Starknet as one of the few Layer 2 platforms embracing BTC staking and governance, potentially unlocking a new wave of adoption. With the official rollout expected in the coming weeks, Starknet is firmly stepping into the BTCfi arena blending Bitcoin’s liquidity with Ethereum Layer 2 innovation.
