The Starknet Foundation, the organization behind the Ethereum Layer 2 network Starknet, plans to distribute 1.8 billion tokens as user rewards and rebates, with exact details still being developed.
According to the statement, the foundation will hire various groups or “committees” to oversee the widespread distribution of these layer 2 blockchain tokens.
A specific committee, the “Provisions Committee”, will be tasked with rewarding users, including rewarding community members with tokens. The committee will distribute 900 million STRK (Starknet) tokens in stages to reward users and community members for their past and future contributions. This initial deployment phase could begin in the first half of 2024.
This plan follows the foundation’s recent confirmation of token airdrop snapshots. This came to light after draft eligibility criteria (for the planned airdrop) briefly appeared on the foundation’s website and were circulated on social media.
“We have been working on the first phase of our deployment for some time and are very close to completing this phase. There will be further formal communication on this soon,” the Starknet Foundation said.
Rebates and DeFi Growth Incentives
In addition to rewards, the foundation is planning ‘user rebates’ to subsidize or refund transaction costs. According to the foundation, the second committee will distribute 900 million tokens, including transaction fees from network users.
“Planning for this initiative is currently underway, and a new committee is being formed to oversee STRK deployment to reward users for significant transactions on the network,” the foundation added.
Additionally, a third group, the “DeFi Committee,” will allocate an initial $50 million to encourage DeFi protocol activity within the network with the goal of “increasing liquidity” in the network’s DeFi ecosystem.
The Starknet Foundation previously announced in detail that a total of 10 billion STRK (Stark) tokens will be issued. Of this, 50% will be retained by the organization and the remainder will be allocated to core developers, ecosystem contributors, and the community.
Starknet operates as a decentralized layer 2 network on Ethereum using a zero-knowledge rollup solution. This solution compresses multiple transactions at an off-chain layer before posting them in batches to the Ethereum network.
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