StarkNet token contract launched on the Ethereum mainnet

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Blockchain
StarkNet token contract launched on the Ethereum mainnet

Wednesday sparks bright information to the DeFi ecosystem as Starkware announced that StarkNet’s ERC20 token contract is deployed on the Ethereum mainnet. The foundation will need some time to decide how to distribute its tokens. The StarkNet Foundation will keep the tokens off the market until further notice.

Stakware to release Starknet on the Ethereum network

In a recent stakware’s post, the Israel layer 2-based company took a milestone towards decentralization via launching Starknet token into Ethereum’s ecosystem. STRK will be utilized as a staking token for participation in StarkNet’s consensus mechanisms, as a Governance token, and for paying transaction fees.

“Today, StarkNet is taking another step towards decentralization. The StarkNet token is now on Ethereum. Recapping quickly: STRK will be used as a staking token for participation in StarkNet’s consensus mechanisms, as a Governance token, and for paying transaction fees.”

StarkNet said.

Starkware is an Israeli company that creates layer-two Ethereum blockchains with zk-STARKs for computational security. 

According to the post, Starkware warned users to be aware of scams as there are yet purchases on StakNet Tokens. The no-scale period will remain in place until further clarifications from the foundation. Participants are also advised to report scams and check their reports for scam reports on their channel

Proposal plan for initial token allocation

The organization previously proposed a plan for an initial token distribution. It depicts that tokens are to be allocated to shareholders, employees, and independent software developers, where they will be locked for four years, having a gradual release schedule commencing after a year. 

Locked tokens can be utilized for staking and voting; nonetheless can’t be transferred or traded. Some tokens are locked through a dedicated smart contract on ETH, while others are locked via custodians.   

The StarkNet Foundation will receive 50.1% of the existing StarkNet tokens to help it achieve its objectives. The tokens are not restricted. Nevertheless, the foundation revealed that it would develop the precise mechanism for further allocating those tokens and share its proposals in due course.

StarkNet Token can implement and support staking and voting. Voting will permit both direct voting and a range of delegation mechanisms. In addition, there will be level 1 and non-level 1 voting. 

In level 1 voting, the ERC-20 will be deployed and include the optional use of the compound’s delegation module, primarily used in non-chain voting. Cost consideration is the reason behind the turn-off. 

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Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.