The company behind Ethereum‘s Layer-2 network, Starknet Foundation, plans to distribute 1.8 billion STRK tokens as user rewards and incentives. The exact details are still unknown and under development. According to the announcement, the foundation will use various groups to control the broader distribution of STRK, the local token of this Layer-2 blockchain network.
Significant Step from Starknet Foundation
According to the plan, a specific committee called the Provision Committee will be tasked with rewarding users, including rewarding community members with the airdrop event. This committee plans to distribute 900 million Starknet (STRK) tokens in a phased manner to reward both past and future contributions of users and community members.
This plan came after a tweet that announced the team had collected data for the airdrop event, following a brief appearance of a draft of eligibility criteria for the planned airdrop on a Starknet domain website and its sharing on social media. The Starknet Foundation made the following statement on the matter:
“We have been working on the first phase of distributions for some time and we are very close to realizing it. There will be more official communications on this subject soon.”
What’s Next for STRK Token?
In addition to the rewards, the foundation plans a reward program for users to support or refund transaction costs. According to the foundation, a second committee will distribute 900 million STRK tokens for transaction fees for users on the network. The Foundation made the following comment on the matter:
“Planning for this initiative is currently ongoing, and a new committee is being formed to control the distribution of STRK to reward users for vital transactions on the network.”
Also, a third group, the DeFi Committee, will allocate 50 million STRK tokens to encourage activity on DeFi protocols on the network to increase liquidity. The Starknet Foundation had previously announced that the supply of STRK would be 10 billion, 50% of which will be preserved by the organization. The remainder will be allocated to core developers and contributors to the ecosystem and community.
Starknet operates as a decentralized Layer-2 network on the Ethereum ecosystem using a zero-knowledge solution. This solution draws attention by storing multiple transactions off-chain before broadcasting them collectively on the Ethereum network.
