Starknet has introduced version 0.13.0 on testnet, highlighting two key features: V3 transactions and reduced transaction fees. This update sets the stage for upcoming functionalities like Paymaster, Fee Market, and Volition Mode.

V3 transactions aim to enable users to utilize their STRK holdings for paying transaction fees, expanding beyond the current acceptance of Ether to include the native token, STRK. However, STRK usage is contingent upon its transferability.

Primarily, STRK will be used for settling L1 gas consumption, with oracles governing STRK/gas to ensure fee accuracy. Pragma and Switchboard provide these Oracle services, with the option for manual price-setting.

The reduction in transaction fees by 50% in Starknet v0.13.0 lowers the Cairo step or built-in costs and increases L1 data availability to 10% across the board for DA. Additionally, it introduces gas discounts for transactions and contract changes.

The community will vote on the new Starknet Governance Hub, while Starknet v0.13.0 is available on the Goerli testnet. Features like Fee Market, Paymaster, and Volition Mode are scheduled for future upgrades. Fee Market allows users to prioritize blockspace during congestion, while Volition Mode offers a more economical alternative to L1 data availability.

Paymaster, inspired by Ethereum EIP-4437, enables entities to pay transaction fees on behalf of senders. This initiative has been positively received by the community, with anticipation for lower transaction costs and enthusiasm for the new Governance Hub. Additionally, Starknet has introduced the Starknet DeFi Landscape, encompassing elements like AMMs, DEX Aggregators, Onramps, Perpetuals, and Lending/Yield Farms.