25 February, 2024

Starknet Foundation Announces 1.8 Billion Token Distribution: Report

3 months ago

08 Dec, 2023

  • The Starknet Foundation is set to distribute half its 10 billion STRK tokens, focusing on rewarding community contributions.
  • A new initiative by Starknet includes rebates for transaction costs, incentivizing increased activity on the Ethereum-based Layer 2 network.
  • The foundation’s DeFi Committee aims to allocate 50 million STRK tokens to enhance liquidity in the network’s DeFi ecosystem.

The Starknet Foundation, the guiding force behind the Ethereum Layer 2 network known as Starknet, has unveiled an ambitious plan to distribute a staggering 1.8 billion tokens. This initiative, primarily focusing on user rewards and transaction rebates, marks a significant step in their ongoing efforts to enhance network participation and functionality. The foundation will deploy various specialized committees to manage these Layer 2 blockchain tokens’ distribution processes effectively.

One such committee, the Provisions Committee, is specifically tasked with allocating rewards. This committee distributes a massive 900 million Starknet tokens in a phased approach. The aim is to acknowledge and incentivize both past and future contributions made by users and community members. As part of its ongoing efforts, the Starknet Foundation has achieved considerable progress in the initial distribution phase, nearing its completion and setting the stage for more comprehensive updates in the near future.

In addition to user rewards, the foundation also focuses on user rebates, a program designed to offset or reimburse transaction costs incurred on the network. A separate committee will be responsible for allocating another 900 million tokens, specifically covering transaction fees for network users. This initiative is currently in the planning stages, with a committee formation in progress to oversee the distribution of STRK tokens.

Moreover, a third entity, the “DeFi Committee,” has been established with a distinct mission. This group is dedicated to allocating an initial 50 million tokens to stimulate activities within the network’s DeFi protocols. The primary objective is to boost liquidity in Starknet’s burgeoning DeFi ecosystem, aligning with the foundation’s broader strategic goals.

The Starknet Foundation had previously announced that 10 billion Stark tokens would be issued, with half of these retained by the organization. The rest are earmarked for core developers, contributors to the ecosystem, and the community at large. 

Starknet operates as a decentralized Layer 2 network on Ethereum, leveraging a zero-knowledge roll-up solution to efficiently condense multiple off-chain transactions before batching them onto the Ethereum network. This plan underscores Starknet’s commitment to fostering a robust, user-centric blockchain environment.