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