Layer-2 network StarkWare and the Starknet Foundation are preparing to distribute 10% of network fees to developers as part of a pilot program called Devonomics. StarkWare CEO Uri Kolodny announced on December 12th that they have allocated a temporary 8% portion of network fees to decentralized application developers and 2% to infrastructure engineers and core developers through a transparent and open voting process.
The Devonomics program will start with an initial distribution covering all transaction fees accumulated up to November 30, 2023, since the launch of Starknet. This development is equivalent to approximately 1,600 Ethereum, worth about $3.58 million with the current Ethereum price.
StarkWare co-founder Eli Ben-Sasson indicated that while the program is likely to undergo several updates, it could have a wide impact on the Ethereum ecosystem and help developers survive the remainder of a long cryptocurrency winter, stating:
“This initiative is a bold experiment that aims to change developers’ thoughts on intellectual property and monetization and ensure they are fairly rewarded for their work.”
Ben-Sasson also explained that the broader cryptocurrency ecosystem has seen a brain drain in an extraordinary number of blockchain ecosystems, with talented developers leaving the industry due to the bear market effects and financial consequences in the cryptocurrency markets.
The first step of the program will be in Ethereum before the Starknet governance token STRK is introduced to the market. During this process, the date for the STRK token distribution has not been finalized, and the foundation has issued warnings about fraud and scams related to the new Layer-2 asset.
The new program arrives amidst an increase in developer activities on the platform. According to data from venture firm Electric Capital, there was a 28% drop in blockchain projects in general, while in October, there was a 14% increase in full-time developers in the Starknet ecosystem. Ben-Sasson attributed this increase in the number of developers active in the Starknet ecosystem to the January 2023 refresh of the local Cairo programming language, commenting:
“Initially seen as a footnote in a world dominated by Solidity, this language is increasingly viewed as the most compelling solution for writing smart contracts. Its ergonomics and usability made a significant leap in 2023. Today, it is attracting interest even outside of the STARK ecosystem.”
