The long-awaited StarkNet Token and Foundation have been finally made public by StarkWare on the 13th of July. Initially, 10 Billion StarkNet Tokens have been minted and will be made available to the community in September this year. Furthermore, StarkWare is working on a layer 3 scaling solution as well which will be a landmark achievement for StarkWare. Layer 3 scaling, known as hyper scaling, is expected to further reduce the costs. This solution will cut the effect of gas fees on the DeFi sector.
The StarkNet Token will be used to operate and maintain the ecosystem and promote its decentralization. It will be used as a mode of payment and for staking as well. Prior to this announcement, the StarkWare has already been in the headlines as it received a whopping 100 million dollars in funding back in May. As a result of this funding, its valuation rose to 8 billion dollars.
The decision-making powers regarding the maintenance of StarkNet and its projects will be soon be passed from StarkWare to the community. This will help to gain the confidence of investors. The StrakNet Foundation will receive a special grant as well that will be utilized to enliven the growth of further infrastructure.
Distribution of the Token
The distribution of the StarkNet token is a critical point for StarkWare as the number of minted tokens seems far less as compared to its expected demand. To handle the situation, Starkware has assigned a fixed percentage for its investors, contributors, and Foundation. 17, 32.9, and 50.1 is the exact percentage the firm wants to allocate to its investors, contributors, and the Foundation respectively.
A Detailed Look at the StarkNet Journey so far
StarkNet is a Layer 2-based permissionless validity ZK-Rollup that uses cryptographic protocols to solve Ethereum’s scalability problem. StarkNet, which is built on the Cairo programming language, allows Ethereum to scale dApps without compromising its decentralization, security, and transparency. It is an open ecosystem built from cryptography (STARKs). The ecosystem comprises core developers who are in pursuit of building tools for scaling blockchains.
To provide greater compensability and general computation, StarkNet Alpha was launched on the Ethereum Mainnet in the last quarter of 2021. Soon it went live on public testnet. The launch of StarkNet Alpha accelerated the expansion of the StarkNet ecosystem.
A Crucial Announcement
Although StarkNet Alpha proved a milestone achievement as it prompted the emergence of a bigger ecosystem but still a lot needed to be done to reach the level of Ethereum (ETH). Stark technology is safe but it has not yet acquired a public status like Bitcoin (BTC) or Ethereum. To reach this status, StarkNet was in dire need of its Token and Foundation. Both the foundation and the token will increase its decentralization by continuing its development and operation at the same time. Reduced costs and immediate confirmations will enhance the user experience. In a relevant development, StarkWare helped the Loopring decentralized exchange (DEX) to unveil a cross-layer 2 automated market maker AMM.
