StarkWare, the founder of a layer 2 scalability product, has deployed its unused StarkNet Token (STRK) on the Ethereum mainnet. The tokens are not yet available for sale an important difference to avoid scams as the nonprofit StarkNet Foundation, which manages the growth of the ecosystem, works out the finest mechanism for allocating them.
The StarkNet Token was designed to support StarkNet accomplish decentralization through voting, staking, and fee payments. The token launch is high profile because of the network’s active developer community, and the $8 billion valuation granted to StarkWare during a funding round this year.
StarkWare’s technology evaluates the scalability problems of the Ethereum blockchain, which cause lagging throughput and boost gas, or transaction, fees as the number of transactions increases. The firm’s roll-up technologies bundle hundreds of transactions off the main blockchain to reduce computational emphasis.
StarkWare recently announced that the StarkNet Foundation will acquire 50.1% of the new tokens, amounting to 5.01 billion tokens. Tokens kept by StarkWare shareholders, employees, and independent member developers are locked in for a 4-year period and will then slowly release beginning after a year. The locked tokens can still be utilized for voting and staking but cannot be traded or transferred.
Also read: A new Ethereum Layer is set to debut in 2023
Locking the tokens for the aforesaid period guarantees that existing contributors align with the long-term incentives of StarkNet. It also prevents inference over the token in advance of general usage for its intentional purposes such as securing the network, paying fees, and decentralizing governance.
The deployment of the Token contracts on Ethereum is another effort in the direction of decentralization. At the time of writing, no tokens are tradable, and this no-trade status will stay in place until further notification by the StarkNet Foundation.
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