After the huge hint leaked by Three Arrows Capital (3AC) co-founder Zhu Su, Ethereum scaling solution StarkWare today confirmed the launch of a governance token. Dubbed the StarkNet token, it will be used to help decentralize the network and reward operators for validating transactions.
StarkWare confirms a StarkNet token
It is the turn of another Ethereum second layer solution to launch its token. In a statement released on Wednesday, StarkWare confirmed its intention to launch a governance token for the StarkNet network. Let’s decipher together what this means.
As a reminder, StarkWare is a company that develops a scaling solution for Ethereum. Currently, these second-layer technologies appear to be essential in an ambition to adopt and use the blockchain on a large scale.
Concretely, StarkWare has two main products: StarkEx and StarkNet. The first is an engine dedicated to improve the scalability of Ethereum and the second is a second layer network for Ethereum, based on ZK-Rollup technology. It is for this that the token will be used.
In its press release, StarkWare described this future token as follows:
“The token will allow community members who have contributed to the success of the ecosystem to play a role in its governance.”
Also according to the press release, this StarkNet token will have three main objectives. First, it will be used for governance of the StarkNet blockchain. Then, by 2023, it will be possible to spend it to contribute to network performance and security. Finally, it will replace Ether (ETH) as the currency for pay transaction fees.
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How will StarkNet tokens be distributed?
At the time of writing these lines, 10 billion tokens have already been minted. Furthermore, their allocation has already been defined among different categories of users, ranging from StarkWare investors to its major contributors.
According to the press release, they will be distributed and available from September. For the future, the community will decide on the temporality with which StarkWare will distribute the new tokens. Furthermore, it is specified that the amount of tokens in circulation will therefore not be in no way fixed.
Regarding the allowance, we learn that 17% of the total amount will be reserved for StarkWare investors. Then 32.9% was allocated to major StarkWare contributors. This includes the founding team, the StarkWare consultants and development partners.
StarkNet Token Distribution Breakdown
Finally, the press release makes it clear that the StarkNet Foundation will receive 50.1% of the token offering to advance the development and adoption of StarkNet. More specifically, we learn that the community will share 9% of the total quantity of tokens in circulation.
Concretely, will be concerned “those who have worked for StarkNet and who have powered or developed its underlying technology, for example through past use of StarkEx L2 systems”. In other words, it specifically targets individuals having used the dYdX or Immutable X protocolsuntil June 1, 2022. As for the aidrop, it seems that it is only planned for the year 2023.
For the rest, 12% will be distributed in the form of grants for the research, development, testing, deployment and maintenance of the StarkNet protocol. Finally, there is a share of 8.2% which has not yet been allocated. It will be the community that will be in charge of deciding how to use it.
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Is there a way to receive StarkNet tokens?
In a simple way, The answer is yes. However, StarkWare is working to prevent anyone does not work for the sole purpose of recovering these tokens for free. In other words, society seems determined to distribute them to individuals involved in the ecosystem.
First, developers who have already built a tool, software or application that is actually loved and used by StarkNet end users can expect to receive tokens. Likewise, if they contribute to the development and maintenance of the protocol.
Regarding end users, StarkWare insists that the use of StarkNet must be done only within the framework of a real need. More specifically, the press release clarifies that:
“If you are an end user, use StarkNet […] for the transactions and applications you enjoy, not with the expectation of a future reward in StarkNet tokens. »
For several months, the announcement of a StarkWare token was an open secret. Indeed, StarkWare has always supported the fact that it would decentralize the network through its community, which usually involves creating a token of governance.
More recently, the situation came to a head on July 12 when Zhu Su, co-founder of Three Arrows Capital (3AC), disclosed personal emails in which we clearly learn the existence of this StarkNet token. Furthermore, this implied that 3AC was waiting to receive some of these tokens.
It is certainly this unexpected revelation that prompted StarkWare to make today’s announcement. Still, the community was relatively puzzled by this announcement. Will the flame of excitement continue to shine if 3AC’s involvement in StarkWare is officially verified?
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Sources: StarkWare press release
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