StarkWare Announces Launch of a Native Token set Targets to Decentralization


Aiming the development of decentralizing ecosystem, StarkWare, an Israel-based
Ethereum layer 2 scalability solutions company, has officially launched its
native token, StarkNet token, and Foundation.
The token is part of a
two-dimensional plan to turn it into a "public good like Ethereum or the
Internet." Whereas the launch of the StarkNet Foundation, a non-profit
organization, is part of the second aspect
of the announcement made on July 13.
StarkNet token will help flesh out the ecosystem and will be used to
"operate the ecosystem, maintain and secure" Starkware’s ever-growing
ecosystem, and promote decentralization.
With respect to the token, it will
fill three purposes: to pay transaction
expenses on StarkNet, to act as a governance
token; and to help the technology's consensus mechanism.
First launched in November 2021, StarkNet
Alpha with many other teams working on expanding the ecosystem. Concerning changes that the team intends to
bring to the ecosystem through the token, StarkWare said, "Permissionless proof-of-stake leader election
mechanism and on-chain payment of transaction fees, both using a native token,
will enable the network to operate reliably as an L2 on Ethereum even should
StarkWare cease to exist. Decisions regarding
the ongoing maintenance of StarkNet will shift from StarkWare to the community.
A StarkNet Token and Foundation will be key elements of this effort."
Initially, 10 billion tokens will
be minted, of which 32.9% of the tokens will be given to core contributors, 17%
to investors, 32.9% to core contributors, and the rest 50.1% will go to the
StarkNet Foundation.
The token is likely to go live on
Ethereum in September. However, it is unclear when the token will be
distributed to members of broader of the StarkNet community.
The launch "will filter and exclude usage that is deemed by to be an abuse and gamification of the
network."
Users will often create multiple
wallets, and execute a variety of operations
with the protocol being referred to during hyped airdrop events, all in hopes
of raking in a much larger allocation than a single wallet.

Joyashree Dey
CBW - External Analyst
INDIA