Ethereum scalability technology company StarkWare announced today: StarkNet coin to be launched in September, explaining token distribution and use cases.

Three Arrows Capital recently revealed in a letter to creditors that the creditors' liquidation actions on StareWare token warrants have harmed Three Arrows Capital's interests. The public disclosure of this letter also revealed news of token issuance for the Ethereum scaling solution StarkWare. The issuance dynamics of various Ethereum Layer 2 solutions have always been closely watched by the community, and StarkWare announced on the 13th that they plan to issue tokens in September this year voluntarily.

What is StarkWare?

StarkWare is a blockchain technology company focused on zero-knowledge proofs, with ZK-STARKs as its main scaling technology. StarkNet is StarkWare's Ethereum L2 solution product, with the Alpha version launched on the mainnet in November 2021.

StarkNet Foundation and Token

StarkWare believes that StarkNet, despite the maturity and security of STARK technology, still needs to be more decentralized to achieve the status of a public good, similar to Ethereum. The StarkNet Foundation will grant tokens to StarkNet as a one-time endowment to maintain it as a public good as a non-profit organization.

The StarkNet token is used for operation, maintenance, and protection of the ecosystem, and will be utilized in governance, transaction payments, and participation in consensus mechanisms.

• 10 billion tokens will be allocated to StarkWare and its investors, StarkWare software development partners, and the foundation.
• Targeted for issuance in September 2022 as an Ethereum ERC-20 token.
• Used for governance and voting on network upgrades.
• Intended to be the sole payment token for the StarkNet network in the future, but investigation is ongoing whether users would prefer ETH as a payment option. Currently, ETH is accepted.
• Additional StarkNet tokens will be minted automatically in the future, with the total supply exceeding 10 billion tokens.
• To maintain the operation and security of StarkNet, staking of StarkNet tokens will be required to provide services such as sequencing, achieving L2 consensus, STARK verification, and data availability. These services are expected to be decentralized by 2023.

StarkNet Token Allocation

17% — StarkWare investors

32.9% — Core contributors: StarkWare, its employees and advisors, and StarkNet software development partners

50.1% — StarkWare Foundation, detailed as follows:

• 9% Community Enablement: Contributors who empower StarkNet with relevant technical contributions, such as users of StarkEx L2 systems like dydx, sorare, immutable, etc., based on usage data as of June 1, 2022.
• 9% Community Rewards: StarkNet tokens will be rewarded to the community to offset costs incurred from transitioning from Ethereum to StarkNet.
• 12% Research, development, testing, and maintenance grants for StarkNet
• 10% Strategic Reserves to support ecosystem activities

  2% Donations to relevant organizations such as universities and non-profit entities

• 8.1% Undetermined Allocation, to be decided by the community