The Starknet Foundation’s Distribution Plans for 1.8 Billion Tokens
The Starknet Foundation, the organization behind the Ethereum Layer 2 network Starknet, is developing a plan to distribute 1.8 billion tokens as user rewards and rebates. While precise details are still being worked out, the foundation intends to employ various committees to oversee the distribution process.
The Provisions Committee: Rewarding Users and Community Members
One specific committee, known as the Provisions Committee, will be responsible for rewarding users and community members with tokens. The committee will distribute 900 million Starknet (STRK) tokens in a phased manner, acknowledging both past and future contributions made by these individuals.
Token Airdrop Snapshot Confirmed
The foundation recently confirmed a token airdrop snapshot, which was briefly mentioned in a draft of eligibility criteria found on their website and shared on social media. The distribution of tokens is expected to begin soon, with more formal communications from the foundation to follow.
User Rebates and DeFi Growth Incentives
In addition to rewards, the foundation plans to introduce user rebates to subsidize transaction costs. Another committee will distribute 900 million tokens to cover transaction fees for users on the network. Furthermore, a third committee called the DeFi Committee will allocate an initial 50 million tokens to encourage activity on DeFi protocols within the Starknet network, aiming to enhance liquidity in its DeFi ecosystem.
Total Token Issuance and Starknet’s Operation
The Starknet Foundation has previously outlined that a total of 10 billion Stark (STRK) tokens will be issued. Half of these tokens will be retained by the organization, while the rest will be allocated to core developers, ecosystem contributors, and the community.
Starknet operates as a decentralized Layer 2 network on Ethereum, utilizing a zero-knowledge roll-up solution. This solution consolidates multiple transactions off-chain before collectively publishing them on the Ethereum network.
Hot Take: Starknet Foundation Empowers Users with Token Rewards and Rebates
The Starknet Foundation’s distribution plan for 1.8 billion tokens demonstrates their commitment to empowering users and community members within the Starknet ecosystem. By rewarding both past and future contributions, subsidizing transaction costs through rebates, and encouraging DeFi activity, the foundation aims to stimulate growth and liquidity while fostering a vibrant community. With the upcoming token airdrop and further communications from the foundation, users can look forward to actively participating in the development of this Layer 2 network.
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