What is Starknet (STRK)?
Starknet scales Ethereum by running transactions on its own layer-2 network and submitting validity proofs that Ethereum verifies.
Since September 1, 2025, STRK is the fee token for every Starknet transaction.
Protocol staking lets STRK holders, and holders of approved tokenized bitcoin, help secure the network and receive rewards paid in newly minted STRK.
Holders can vote on governance proposals, directly or through delegation.
Settlement stays on Ethereum, while Starknet handles execution.
What is Starknet?
Starknet is a layer-2 network built to scale Ethereum. It processes transactions on its own network and submits validity proofs (mathematical evidence that the processing followed the rules) for verification on Ethereum.
STRK is the network’s native token, used in its fee, governance and staking systems.
Ethereum’s base layer has limited capacity to process transactions. This results in transactions competing against each other for block space and fees rise with demand in these situations.
A layer-2 network moves that competition elsewhere: Starknet runs the transactions, then asks Ethereum to confirm the results in compressed form. The Starknet documentation classifies the design as a “validity rollup,” a network that settles on Ethereum by proving its work.
A validity proof aims to guarantee that Ethereum only accepts correct state transitions. It does not keep block production running, secure the applications built on Starknet, or protect assets sitting in a bridge.
For the broader category before going deeper, our guide to layer-2 networks compares how rollups and other scaling approaches work.
How does Starknet work?
Starknet processes transactions on its own network, proves the results are correct, and has Ethereum verify that proof. The Starknet documentation describes the sequence in four steps.
- Sequencing. A user submits a transaction. A sequencer (the operator that orders transactions and builds blocks) places it in a block and executes it.
- Proving. A prover (software that does the heavy computation) generates a STARK proof that the block followed Starknet’s rules. Proofs can be aggregated across many blocks.
- Verification. A verifier smart contract on Ethereum checks the proof. If the proof is valid, the Starknet state recorded on Ethereum updates.
- Data publication. Starknet publishes compressed state changes to Ethereum so anyone can reconstruct the full state.
Execution and settlement are separate jobs. Execution happens on Starknet, where a transaction is accepted first. Settlement happens on Ethereum, once the proof is verified. If that was a lot of nouns, it was: sequencers, provers and verifiers each do exactly one thing.
Practical example: Suppose verifying one proof on Ethereum costs a hypothetical $100. A batch of 10,000 transactions splits that cost to $0.01 each, while a lone transaction would carry all $100. The figures are illustrative and not a Starknet fee quote.
Because Starknet accounts and the Ethereum verifier are both smart contracts (programs that run onchain when their conditions are met), our smart contracts guide is a useful companion read.
What is STRK used for?
STRK is used to pay transaction fees, vote on governance proposals and take part in protocol staking.
Transaction fees
Since the v0.14.0 release on September 1, 2025, Starknet transaction fees can only be paid in STRK. A sequencer may convert part of each fee to ETH, because Ethereum gas costs must be paid in ETH, according to the Starknet documentation.
Governance
STRK holders can vote on proposals, directly or through delegation, and major updates to the Starknet Operating System require token holder approval. In 2025, SNIP-31, the proposal that introduced bitcoin staking, passed with 93.6% of voters in support, according to The Block.
Protocol staking
Protocol staking is live. Validators stake at least 20,000 STRK and attest to blocks, and holders can delegate STRK or approved tokenized bitcoin to validators. Rewards are paid in newly minted STRK, and staking power is weighted 75% STRK and 25% bitcoin.
Unstaking starts a 7-day lockup during which funds earn no rewards. The staking documentation places the protocol in the second of four phases, and later phases, in which validators produce and prove blocks, remain on the roadmap.
Practical example: A validator holding 1% of all staked STRK and 2% of all staked bitcoin has a staking power of 0.75 × 1% + 0.25 × 2% = 1.25%, using the formula in the staking documentation.
To see how staking works across proof-of-stake networks and what to weigh before taking part, our staking guide covers the basics.
How is Starknet different from Ethereum?
While Starknet is a layer-2 network that executes transactions, it ultimately settles on Ethereum, which is the layer-1 network that verifies and finalizes them.
Feature | Starknet | Ethereum |
|---|---|---|
Role | Layer-2 network that scales Ethereum | Layer-1 base network |
Execution | Transactions run on Starknet through its sequencer | Transactions run on the Ethereum network itself |
Settlement | Starknet submits validity proofs and state data to Ethereum | Ethereum verifies the proofs and records the results as final |
Native token | STRK | ETH |
Starknet relies on Ethereum to verify its proofs and store its data. The fee token differs as well: STRK pays fees on Starknet, and ETH pays gas on Ethereum.
Fee tokens are the most visible difference for users, and our explainer on blockchain gas fees shows how network fees work across chains.
What risks should users understand?
Users should weigh token risks and user-journey risks separately, because verification on Ethereum does not cover the whole path from wallet to application.
Token risks
Market and liquidity risk is the chance that STRK’s price falls or that STRK cannot be sold quickly at a fair price.
Supply risk is the possibility that more tokens enter circulation over time. According to the STRK documentation, up to 127 million STRK unlock each month from April 15, 2025 through March 15, 2027, and staking rewards mint new STRK.
Network and user-journey risks
Smart-contract and application risk is the chance that a bug in Starknet’s contracts or in an app built on it causes a loss of funds.
Bridge risk is the chance that a bridge (a tool that moves assets between networks) fails or is exploited.
Bridges add a separate set of risks when you move assets onto a layer-2 network, and our blockchain bridge guide explains how they work.
Custody risk applies when a centralized platform holds your tokens: the platform controls the private keys, so your access depends on its solvency and operations.
Protocol and operational risk is the chance that block production or validator duties fail or change. The Starknet documentation describes decentralization as a phased process still in progress. Staking adds a disclosed 7-day withdrawal lockup, a product term that differs from an unexpected freeze.
Where can you buy STRK?
Kraken offers a complete guide to buy STRK on Kraken, which covers funding methods, fees and purchase steps.
Availability and supported payment methods depend on your region and eligibility. Prices can rise and fall, so review the risks above before deciding.
Take the next step on Kraken
You now know how Starknet settles on Ethereum, what STRK does and where the risks sit.
When you are ready to act, the Buy STRK page on Kraken lists funding methods and fees, Kraken supports passkeys for account security, and Convert swaps other listed assets for STRK.