Starknet decentralization reaches Stage 1 milestone in May 2025, marking a critical step in the Layer 2 network’s transition toward autonomy. According to the framework proposed by Ethereum co-founder Vitalik Buterin, Stage 1 signifies that the protocol no longer depends on its core developers and operates with minimal centralized oversight. Starknet decentralization now places the project at the forefront of the ZK-rollup ecosystem.
Security Council and Smart Contract Governance
The team behind Starknet highlighted the role of a newly established security council and censorship-resistance mechanisms in reaching this milestone. These features, combined with a validator-proof system entirely operated by smart contracts, have removed the need for centralized emergency controls or developer interventions. While the security council retains limited authority, the network is now resilient enough to maintain integrity autonomously.
Starknet’s architecture is designed to transition gradually toward full decentralization, aligning with Buterin’s Stage 2 — a level where all core functions, upgrades, and dispute resolutions are governed by the community. Only three minor Layer 2 projects have achieved Stage 2 so far, making Starknet’s progress especially notable.
Starknet Leads Among ZK-Rollups by TVL
Starknet achieves Stage 1 decentralization milestone and simultaneously tops the ZK-rollup category by total value locked. Its $629 million TVL positions it as the fifth-largest Layer 2 network overall. The top four are Optimistic rollups, including Arbitrum and Optimism, which also operate at Stage 1 but use fraud proofs rather than ZK-proofs.
This leadership reflects growing developer and user trust in Starknet’s infrastructure, especially as ZK-rollups become central to Ethereum’s scalability roadmap. While Optimistic rollups remain dominant in user base and liquidity, ZK-rollups like Starknet are gaining ground due to their stronger data availability and security guarantees.
Next Step: Full Autonomy with Stage 2
The next benchmark for Starknet is reaching Stage 2 decentralization, where the protocol would be entirely controlled by community governance mechanisms. This phase involves deploying decentralized upgrade frameworks, community-controlled security councils, and fully open dispute resolution systems.
Starknet’s trajectory suggests it may become one of the first major Layer 2 platforms to achieve full decentralization at scale. Developers and investors alike are closely watching this evolution, as the project continues to influence the direction of zero-knowledge cryptography and Ethereum Layer 2 solutions.
