Starknet is a layer-2 Ethereum solution built on zk-proof that is promoting community involvement and decentralisation. The distribution of over 1.8 billion STRK tokens is planned, according to the Starknet Foundation. These tokens were introduced on Ethereum in November 2022; they are not transferable at this time. Through a number of programmes, such as a provisions committee entrusted with distributing 900 million STRK tokens in an equitable and open manner, the Foundation hopes to encourage the community. In order to promote broader ownership of the native token, the objective is to reward both past and future contributors.
The specifics of this procedure are still unknown, and a Starkware representative declined to comment further.
Operating independently of Netanya, Israel-based Starkware Industries is the Starknet Foundation, which is registered in the Cayman Islands. Uri Kolodny and Eli Ben-Sasson, co-founders of Starkware, are on its seven-person board.
Starkware’s valuation following its 2022 Series D fundraising was $8 billion. The Foundation intends to compensate users for their Starknet network transactions, including refunds of transaction fees, in addition to acknowledging contributions. As a security and scalability measure, the network uses zero-knowledge proofs on the Ethereum mainnet for transaction batch execution. Starknet fees are in ether.
The Starknet Foundation has set aside the first 50 million STRK tokens to be used in an effort to encourage participation in the decentralised finance (DeFi) industry.
Six-person “DeFi Committee” that is presently wrapping up research will shortly launch plans to increase trading volume, liquidity, and the general spread of DeFi protocols on Starknet. In the coming week, Starknet hinted that it would release more information about its developer and decentralised application (dApp) incentive programme on the Starknet network.
Since there is no secondary market for the token, estimating the value of the intended distribution is difficult. Comparable layer-2 platforms, however, like Optimism, Arbitrum, and Polygon, currently have fully-diluted market caps between $8 billion and $11 billion.
Ten billion STRK tokens are available in total, of which five billion are allotted to the Starknet Foundation. The 2024 airdrop is one of many that are anticipated in relation to Ethereum layer-2 networks, such as zkSync and LayerZero.
