Jul 13,2022 ·
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In this post we dive deeper into the design of the StarkNet Token, its minting schedule and expected timeline.
The design of the StarkNet Token is shaped by the need to power a network that is composed of (i) Users of StarkNet, (ii) Operators — people providing the network with computing resources that perform sequencing of transactions, generation of STARK proofs, and long-term storage providers, and (iii) Developers writing software for its infrastructure and for applications running on it.
Mechanisms for fee structure and token minting should be:
These preferences will shape the mechanism for allocating tokens from new minting and transaction fees paid by Users:
Operators secure the ongoing liveness of StarkNet and deliver the high-quality performance of the protocol that Users demand.
Developers build and maintain the software used by Operators to secure the network, and they create apps that enhance the network’s functionality for users. Consequently, a portion of the fees and new minting will go to Smart Contract Developers and Core Developers, as follows:
Ten billion tokens have been minted off-chain by StarkWare. To clarify: these StarkNet Tokens do not represent equity in StarkWare nor do they provide any participation right in StarkWare or grant any right of claim from StarkWare. The circulating supply of tokens will increase over time with the minting of new tokens by the protocol, pursuant to a schedule that will be determined by the community at a later point.
The circulating supply may not, therefore, remain fixed.
The allocation is thus:
17% — StarkWare Investors
32.9% — Core Contributors: StarkWare and its employees and consultants, and StarkNet software developer partners
50.1% granted by StarkWare to the Foundation, earmarked as follows:
To align long-term incentives of the Core Contributors and Investors with the interests of the StarkNet community, and following common practice in decentralized ecosystems, all tokens allocated to Core Contributors and Investors will be subject to a 4-year lock-up period, with linear release and a one-year cliff.
The short answer is yes, but there are no shortcuts to receiving tokens.
StarkNet Token allocation and its fee market and new minting design give precedence to developers of core infrastructure and dApps, as well as others contributing to the ecosystem’s security and health. What does this mean practically in relation to the token?
If you are a developer and you already wrote software for either StarkNet infrastructure, or for a smart contract, that are genuinely valued and used by StarkNet end users, then you can expect to receive tokens automatically through the protocol. One of the many safeguards against gamification of this mechanism is that fees received by developers will be strictly less than fees paid by users.
Developers may also receive token grants for work done to develop, test and maintain the StarkNet protocol. Any such grants will be determined in due course by the Foundation in accordance with its mission.
If you are a blockchain developer who believes that StarkNet is the answer to Ethereum’s scaling needs, we encourage you to learn more about StarkNet and its programming language, Cairo, and to start developing your own smart contracts.
If you are an end user, use StarkNet — but only as it serves your needs today. Use it for those transactions and applications that you value, not in expectation of any future reward of StarkNet Tokens. When Community Provisions are announced, they will refer only to snapshots that have occurred previous to the announcement date, and will filter and exclude usage that is deemed by it to be an abuse and gamification of the network, based on the information available at that point in time. When Community Rebates are instituted, they will never apply to transactions that occurred before the rebate was announced, so transacting today in anticipation of a future rebate is futile.
Building an open network means embracing the unknown. The Internet, Bitcoin and Ethereum, were invented by innovators who believed their tools might change the world, but didn’t quite know how. Humbly, we hope that StarkNet’s ability to scale blockchains will be good for Ethereum and good for a decentralized web. We can’t know what will get built. But we do believe that StarkNet puts a remarkable technological capability in the hands of a creative community, and we hope to see that community use it in a myriad of ways, many of them as-yet unimagined.