Ethereum second layer scalability company StarkWare confirmed the rumors about the upcoming launch of the StarkNet token. The asset is aimed at enabling the project to operate a decentralized ecosystem and to create an effective mechanism to \u201cdirect its evolution\u201d.<\/p>\n
Related Reading |\u00a0Polygon Climbs 20% On Disney Glee \u2013 Can MATIC Sustain Gains This Month?<\/p>\n
The StarkNet is an Ethereum second layer scalability solution based on Zero Knowledge (ZK) Rollup technology. This provides decentralized applications (dApps) with \u201cunlimited\u201d scalability without compromising security, decentralization, and composability.<\/p>\n
The StarkNet Token was designed to power and incentivized the key elements on this network. The announcement claims these are StarkNet\u2019s users, operators, and developers.<\/p>\n
In that sense, the company has implemented a fee structure and token minting mechanism to prevent \u201cspeculative manipulation\u201d, with \u201clargely automated\u201d processes, and a track record of efficient functionality across other blockchains.<\/p>\n
The announcement is very explicit about the important roles of Operators and Developers. Thus, these components of the StarkWare ecosystem will receive a portion of the StarkNet token.<\/p>\n
For example, smart contract developers will be rewarded with a portion of the fees paid by users for leveraging L1 and L2 smart contracts. This process will be automated, according to the design explained above.<\/p>\n
The more a project or smart contract provides value to the StarkWare and the StarkNet ecosystem, the more developers will be rewarded with a \u201clarger portion of tokens allocated for this purpose\u201d. The company clarified that the token allocation mechanism is \u201cyet to be determined\u201d, but they will make a big emphasis on preventing \u201cgamification\u201d and be transparent about this process.<\/p>\n
Furthermore, the company said that the StarkNet token won\u2019t have a fixed supply. On the contrary, the supply \u201cwill increase over time\u201d. The minting schedule is also to be determined by the StarkNet community.<\/p>\n
#StarkNet Alpha was launched on Ethereum Mainnet in November 2021. Now it\u2019s time to advance its decentralization as demanded of an L2 on Ethereum. Here\u2019s our decentralization proposal, introducing the StarkNet Token, and the StarkNet Foundationhttps:\/\/t.co\/zk33gANsin pic.twitter.com\/YTd0Uj5NbW<\/p>\n
\u2014 StarkWare (@StarkWareLtd) July 13, 2022<\/p>\n\n
StarkWare Token Allocation Disincentives \u201cSpeculation\u201d?<\/p>\n
The company claims it has minted ten billion StarkNet tokens. As seen below, these tokens will have the following allocation: 32.9% for \u201cCore Contributors\u201d, 50.1% to be granted by StarkWare to the recently created StarkNet Foundation, and a 17% for StarkWare investors.<\/p>\n
Source: StarkWare via Medium<\/p>\n
The StarkNet Foundation token allocation will be split with 18% destined for Community Provisions and Community Rebates. These tokens will reward key community members and users \u201cwho performed work for StarNet\u201d.<\/p>\n
The latter is key in the entire allocation for the StarkNet tokens, the project is set at rewarding work and preventing people from speculating and \u201cgamifing\u201d the mechanism. As the announcement said there will be \u201cno shortcuts to receiving tokens\u201d. StarkWare said the following on its lockup and vesting periods:<\/p>\n
To align long-term incentives of the Core Contributors and Investors with the interests of the StarkNet community, and following common practice in decentralized ecosystems, all tokens allocated to Core Contributors and Investors will be subject to a 4-year lock-up period, with linear release and a one-year cliff.<\/p>\n
Some members of the crypto community disagreed with the token allocation claiming users and operators, allegedly two major components of the ecosystem, will not receive proper compensation. For StarkNet users, the company recommends the following in light of the upcoming token launch:<\/p>\n
If you are an end user, use StarkNet \u2014 but only as it serves your needs today. Use it for those transactions and applications that you value, not in expectation of any future reward of StarkNet Tokens.<\/p>\n
Related Reading |\u00a0Upcoming ETH Merge Sees Institutional Investor Sentiment Turn Positive<\/p>\n
At the time of writing, Ethereum (ETH) trades at $1,140 with a 7% profit in the last 24 hours.<\/p>\n
ETH\u2019s price trends to the downside on the 4-hour chart. Source: ETHUSD Tradingview<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Ethereum second layer scalability company StarkWare confirmed the rumors about the upcoming launch of the StarkNet token. The asset is aimed at enabling the project to operate a decentralized ecosystem and to create an effective mechanism to \u201cdirect its evolution\u201d.<\/p>\n
Related Reading |\u00a0Polygon Climbs 20% On Disney Glee \u2013 Can MATIC Sustain Gains This Month?<\/p>\n
The StarkNet is an Ethereum second layer scalability solution based on Zero Knowledge (ZK) Rollup technology. This provides decentralized applications (dApps) with \u201cunlimited\u201d scalability without compromising security, decentralization, and composability.<\/p>\n
The StarkNet Token was designed to power and incentivized the key elements on this network. The announcement claims these are StarkNet\u2019s users, operators, and developers.<\/p>\n
In that sense, the company has implemented a fee structure and token minting mechanism to prevent \u201cspeculative manipulation\u201d, with \u201clargely automated\u201d processes, and a track record of efficient functionality across other blockchains.<\/p>\n
The announcement is very explicit about the important roles of Operators and Developers. Thus, these components of the StarkWare ecosystem will receive a portion of the StarkNet token.<\/p>\n
For example, smart contract developers will be rewarded with a portion of the fees paid by users for leveraging L1 and L2 smart contracts. This process will be automated, according to the design explained above.<\/p>\n
The more a project or smart contract provides value to the StarkWare and the StarkNet ecosystem, the more developers will be rewarded with a \u201clarger portion of tokens allocated for this purpose\u201d. The company clarified that the token allocation mechanism is \u201cyet to be determined\u201d, but they will make a big emphasis on preventing \u201cgamification\u201d and be transparent about this process.<\/p>\n
Furthermore, the company said that the StarkNet token won\u2019t have a fixed supply. On the contrary, the supply \u201cwill increase over time\u201d. The minting schedule is also to be determined by the StarkNet community.<\/p>\n
#StarkNet Alpha was launched on Ethereum Mainnet in November 2021. Now it\u2019s time to advance its decentralization as demanded of an L2 on Ethereum. Here\u2019s our decentralization proposal, introducing the StarkNet Token, and the StarkNet Foundationhttps:\/\/t.co\/zk33gANsin pic.twitter.com\/YTd0Uj5NbW<\/p>\n
\u2014 StarkWare (@StarkWareLtd) July 13, 2022<\/p>\n
StarkWare Token Allocation Disincentives \u201cSpeculation\u201d?<\/p>\n
The company claims it has minted ten billion StarkNet tokens. As seen below, these tokens will have the following allocation: 32.9% for \u201cCore Contributors\u201d, 50.1% to be granted by StarkWare to the recently created StarkNet Foundation, and a 17% for StarkWare investors.<\/p>\n
Source: StarkWare via Medium<\/p>\n
The StarkNet Foundation token allocation will be split with 18% destined for Community Provisions and Community Rebates. These tokens will reward key community members and users \u201cwho performed work for StarNet\u201d.<\/p>\n
The latter is key in the entire allocation for the StarkNet tokens, the project is set at rewarding work and preventing people from speculating and \u201cgamifing\u201d the mechanism. As the announcement said there will be \u201cno shortcuts to receiving tokens\u201d. StarkWare said the following on its lockup and vesting periods:<\/p>\n
To align long-term incentives of the Core Contributors and Investors with the interests of the StarkNet community, and following common practice in decentralized ecosystems, all tokens allocated to Core Contributors and Investors will be subject to a 4-year lock-up period, with linear release and a one-year cliff.<\/p>\n
Some members of the crypto community disagreed with the token allocation claiming users and operators, allegedly two major components of the ecosystem, will not receive proper compensation. For StarkNet users, the company recommends the following in light of the upcoming token launch:<\/p>\n
If you are an end user, use StarkNet \u2014 but only as it serves your needs today. Use it for those transactions and applications that you value, not in expectation of any future reward of StarkNet Tokens.<\/p>\n
Related Reading |\u00a0Upcoming ETH Merge Sees Institutional Investor Sentiment Turn Positive<\/p>\n
At the time of writing, Ethereum (ETH) trades at $1,140 with a 7% profit in the last 24 hours.<\/p>\n
ETH\u2019s price trends to the downside on the 4-hour chart. Source: ETHUSD Tradingview<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3406","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=3406"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3406\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=3406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=3406"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=3406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}