Scaling solutions Ethereum StarkWare has just confirmed the launch of a governance token named StarkNet Token, "legitimizing" the information that Three Arrows Capital founder Zhu Su accidentally disclosed earlier.
StarkWare is one of the most anticipated layer-2 solutions in 2022. The project has two main chains: StarkEx – used by decentralized exchanges dYdX (until it builds its own) with DeversiFi – and a decentralized layer-2 solution called StarkNet. The upcoming token will be used for StarkNet.
On the evening of July 13, StarkWare announced the latest development move for StarkNet, which is to issue a separate token for the project, called StarkNet Token and set up a development fund for the future.
#StarkNet Alpha was launched on Ethereum Mainnet in November 2021.— StarkWare (@StarkWareLtd) July 13, 2022
Now it's time to advance its decentralization as demanded of an L2 on Ethereum.
Here's our decentralization proposal, introducing the StarkNet Token, and the StarkNet Foundationhttps://t.co/zk33gANsin pic.twitter.com/YTd0Uj5NbW
tarkWare said in the press release:
“The token will allow the community to make a contribution to the success of the ecosystem and play an important role in the governance of the ecosystem.”
The total supply of StarkNet Token will be 10 billion, already minted off-chain and prepared to be distributed to parties including StarkWare investors and the project's core team. StarkNet Token will go live on StarkNet next September as a token ERC-20 on the platform Ethereum. Tokens distributed to the initial parties including investors (17%), development team (32.9%) will be locked for 1 year and amortized (vesting) in installments for the next 4 years.
In addition, StarkWare will establish a StarkNet Foundation fund, allocating 10% total token supply to the fund to spend to promote the development of the entire ecosystem. Other participants receiving tokens include Project Grant Fund (12%), Donations (2%), Staking Rewards (9%), Airdrop/Retroactive (9%) and Unspent (8.1%).
So far, StarkWare has not planned to airdrop tokens to the community, but claims to only conduct token rewards for those who have participated in using StarkEx in the past. At that time, they will conduct a snapshot before the announcement date and carefully screen the airdrop recipients. The project claims it will be “in vain if someone tries to use the network for speculation.”
StarkNet Token has 3 main utilities:
- StarkNet Chain Administration;
- Staking tokens contribute to layer-2 performance and security (to be released in 2023);
- Replace ETH for transaction fees.
Predictions about StarkNet's token launch have been around for a long time because many people believe that the project will also follow in the footsteps of other layer-2s, typically Optimism (OP). However, this “hypothesis” seemed to have become certain until July 12. The founder of Three Arrows Capital has officially "responded" to the demand for liquidation on Twitter and shared screenshots of two emails. In it, it accidentally revealed the contract to buy tokens of StarkWare. And most likely it was this "indiscretion" that caused StarkWare to make the sudden announcement.