Starknet community approved a dynamic minting curve for STRK tokens. The minting curve adjusts token supply based on staking participation levels. Starknet Foundation can modify minting parameters to manage inflation and rewards.

The Starknet community has successfully passed a proposal to implement a dynamic minting curve for STRK tokens, a significant move to balance staking incentives with token supply. Nearly 98.94% of voters supported the new staking mechanism, which aims to offer more control over token inflation while incentivizing user participation. It makes Starknet the first major Ethereum Layer 2 (L2) to roll out staking functionality. The new minting curve included in the approved proposal is based on “Proposal 2” by Professor Noam Nisan, with slight modifications. It will adjust the minting rate according to staking participation levels. James Strudwick, executive director of the Starknet Foundation, described the approval as a game-opCEO of StarkWare, and echoed these sentiments, noting that the approval “gives the community a real stake — both literally and figuratively — in its future.” How the dynamic minting curve works The dynamic minting curve will adjust the token minting rate (M) based on the staking rate (S) and a constant (C), initially set at 1.6. The formula allows the token supply to be fine-tuned according to how many users are staking, preventing inflation when staking levels are high and encouraging participation when engagement is low. Additionally, the Starknet Foundation or a designated monetary committee will be responsible for adjusting the minting parameters. This includes the ability to modify the constant (C) within a range of 1.0 to 4.0, depending on staking trends. Any changes to minting rates will require public announcements and a two-week notice period for community review, ensuring transparency. With this dynamic system in place, Starknet hopes to foster a more engaged community and incentivize long-term network participation, helping to ensure the stability and growth of the platform.

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a16z, OpenSea and Stand With Crypto have launched a $6 million creator defense fund. OpenSea has pledged $5 million and a16z $1 million. The fund will support the NFT market, with this coming weeks after SEC issued a Wells Notice against OpenSea.

Venture capital firm Andreessen Horowitz is collaborating with NFT marketplace OpenSea and Coinbase-backed non-profit Stand With Crypto to launch a new fund aimed at legal defense for the crypto creator ecosystem. On Friday, a16z Crypto, Stand With Crypto and OpenSea announced the launch of Creator Legal Defense Fund, with an initial $6 million funding. The fund targets legal protection for artists and creators, according to details the three platforms shared. “This collaboration marks a significant milestone in our mission to empower and protect the voices of artists and creators who rely on blockchain technology,” the firms wrote. OpenSea pledges $5 million Creator Legal Defense Fund’s unveiling comes just two weeks after the US Securities and Exchange Commission (SEC) issued a Wells Notice against OpenSea – a leading NFT marketplace. SEC’s notice indicates the regulator is considering a lawsuit against the platform for securities violations. Following the SEC’s Wells Notice, OpenSea issued a statement noting that it would “stand up and fight.” Co-founder and CEO Devin Finzer called the regulator’s approach shocking, with OpenSea saying it would dedicate $5 million to a fund aimed at protecting NFT creators. On Sept. 13, the marketplace, together with a16z and Stand With Crypto unveiled the creator defense fund. a16z noted it would contribute $1 million while OpenSea pledged $5 million. OpenSea CEO commented that the fund will offer legal expertise to both creators and developers.

The fund will utilise legal experts from various law firms, including Cooley LLP, Fenwick & West LLP, Goodwin Procter LLP and Latham & Watkins LLP. SEC and crypto crackdown The SEC continues to attract criticism from across crypto and from US lawmakers over its regulation by enforcement approach to crypto. On Thursday, the regulator announced a settlement with eToro. It included monetary penalty and a cease and desist order that will see the platform delist all crypto tokens except Bitcoin, Ethereum and Bitcoin Cash.

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