An Ethereum scalability Solution provider, StarkWare announced the launch of a StarkNet Token and Foundation to encapsulate the principles of decentralization.
This means that the network’s operation will not rely on any single entity (including StarkWare). The aim of the Foundation will be to ‘maintain StarkNet as a public good.’
The Foundation members will have to ensure the smooth functioning and maintenance of the StarkNet. They will also be responsible for avoiding discrimination between users.
The Foundation will be funded by a one-time grant of StarkNet Tokens, to encourage development of bottom-up mechanisms for community decision-making.
The native token will allow for a permissionless proof-of-stake leader election mechanism and on-chain payment of transaction fees. The StarkNet Tokens will be used for:
- governance
- payment of transaction fees on StarkNet
- participation in StarkNet’s consensus mechanism.
Initially, 10 billion tokens are minted and will be allocated to the Core Contributors of the StarkNet ecosystem (including StarkWare and StarkWare’s investors), to StarkNet software developer partners, and to the Foundation.
By September 2022, the token will be launched as an ERC-20 token and used for governance and voting. Sometime down the road, automatic minting of additional StarkNet Tokens will also commence.
Also Read: StarkWare Launches StarkGate Alpha and StarkNet Alpha
