Starkware Debuts STRK Token On Ethereum: Details
- Starkware has debuted its own native token called STRK which is not for sale currently and is under “no-trade status” which means no one having the token can transfer or trade it as well.
- The ensure fairness, the STRK tokens that are currently possessed by Starkware employees and shareholders will be locked for a total period of 4 years and unlocking will begin a year after that.
- 50.1% of the existing StarkNet tokens belong to the StarkNet Foundation, the firm responsible for the development of the platform but these are not locked.
Starkware, a platform responsible for providing scalability and privacy in blockchains using STARK technology, has debuted its native token STRK on the Ethereum Network, but it is crucial to note that this is currently under “no-trade status” and it “will remain in place until further notice by the StarkNet Foundation,” as per a blog post written by the platform.
Additionally, as per the blog post, it will take time for the Starkware Foundation to determine the mechanism for distributing its tokens and then only will the tokens be available for sale. The launch of the STRK token comes at a time when the entire crypto space is struggling with a bearish drop in prices and several crypto firms have filed for protection under Chapter 11 bankruptcy.
Moreover, the tokens held by the developers and employees of Starkware will be locked for a total of four years. This has been done so that the locked tokens cannot be transferred or traded and can only be staked or used for governance and voting mechanisms. This maintains the much needed balance in the ecosystem and minimizes the chances of internal players dumping their tokens on investors when STRK is being listed on various exchanges.
“Tokens held by StarkWare shareholders, employees and by independent partner software developers are locked for a four year period, with a gradual release starting after one year,” said Starkware. “The token will further StarkNet’s decentralization thanks to its use for voting, staking and paying fees.”
Another important fact is that 50.1% of the existing StarkNet tokens belong to the StarkNet Foundation, the firm responsible for the development of the platform, and these tokens are not locked. However, in the blog post, Starknet said that “the Foundation will need time to formulate the exact mechanism to further allocate those tokens and will share its plans in due time.”
Interestingly, the platform wrote that this step taken by the firm is very crucial and with the deployment of the StarkNet Token contracts on Ethereum, Starkware has made another huge step in the world of decentralized finance. The new tokens will be used by the Foundation for the development and funding of new protocols, among other initiatives.
“Locking the tokens for the aforementioned period ensures that current contributors align with the long-term incentives of StarkNet. It also discourages speculation over the token in advance of widespread usage for its intended purposes: securing the network, paying fees, and decentralizing governance,” explained Starkware.
The platform was developed in January 2018 by Eli Ben-Sasson (co-inventor of STARK) Uri Kolodny (serial entrepreneur), Michael Riabzev (co-inventor of STARK), and Alessandro Chiesa (founding scientist of Zcash).
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
