Starknet (STRK) is a permissionless Validity-Rollup, often referred to as a Zero-Knowledge Rollup (ZK-Rollup), operating as a Layer-2 (L2) blockchain on Ethereum. It enables decentralized applications (dApps) to achieve massive scalability without compromising Ethereum's inherent security and composability.
Launched on February 14, 2024, the network utilizes the STARK cryptographic proof system to facilitate secure, low-cost transactions and high throughput. Its native token, STRK, is integral to the network's operations, governance, and economic security.
What is Starknet (STRK)?
Starknet is a Layer-2 scaling solution designed to alleviate Ethereum's congestion and high gas fees. By processing transactions off-chain and submitting cryptographic proofs to the Ethereum mainnet, it dramatically increases transaction capacity while maintaining the security guarantees of Ethereum.
The core technology is built using Cairo, a custom programming language specifically designed for writing Starknet contracts and its operating system. This allows developers to create complex dApps that were previously hindered by high costs and network limitations.
Core Functionality and Technology
At its heart, Starknet uses STARK proofs, one of the most advanced cryptographic systems available. This technology allows the network to bundle thousands of transactions into a single proof, which is then verified on Ethereum. This process reduces the data load on the mainnet, ensuring transactions are both cheaper and faster.
The network is continuously evolving, with its roadmap focusing on enhancing decentralization and user experience through mechanisms like proof-of-stake for sequencing and proof submission.
Key Uses of the STRK Token
The STRK token is a multifunctional asset within the Starknet ecosystem. It is not an investment product or a claim on equity in StarkWare or the Starknet Foundation. Instead, it serves three primary purposes:
1. Transaction Fees: While fees were initially paid only in ETH, the network now allows users to pay transaction costs using STRK tokens. This provides flexibility and further integrates the token into the ecosystem's economy.
2. Staking: To ensure network liveness and security, certain critical services will require participants to stake STRK tokens. These services may include sequencing transactions, facilitating temporary L2 consensus, providing STARK proof generation, and data availability provisioning. These protocol changes are under active discussion within the community, with implementations targeted for 2024-2025.
3. Governance: STRK holders have the right to participate in the governance of the network. Proposals for upgrades or changes to the Starknet protocol may require a minimum threshold of token support. Major decisions, such as significant updates to the operating system, are subject to a vote by token holders, either directly or through delegation.
STRK Tokenomics and Distribution
The total supply of STRK is fixed at 10 billion tokens. These tokens were initially created by StarkWare in May 2022 and were minted on-chain on November 30, 2022.
The allocation of these tokens is designed to support the long-term growth and security of the network:
- 20.04% to Early Contributors: Allocated to StarkWare team members and early contributors, subject to a lock-up schedule.
- 18.17% to Investors: Allocated to StarkWare investors, also subject to a lock-up schedule.
- 10.76% to StarkWare: Reserved for operational services like paying fees and providing essential services on the network.
- 12.93% to Grants: Dedicated to funding research, development, testing, and maintenance of the Starknet protocol.
- 9.00% to Community Provisions: For distribution to those who contribute to and support Starknet's underlying technology.
- 9.00% to Community Rebates: Allocated for a rebate program to partially cover the cost of moving assets from Ethereum to Starknet (to be launched in 2024).
- 10.00% to Foundation Strategic Reserve: For the Starknet Foundation to fund ecosystem activities.
- 8.10% to Foundation Treasury: For the Foundation's operations and future initiatives.
- 2.00% to Donations: Reserved for donations to universities, NGOs, and other institutions.
Frequently Asked Questions
What is the main goal of Starknet?
Starknet's primary goal is to scale Ethereum's throughput using advanced zero-knowledge cryptography. It allows developers to build scalable dApps that can handle high transaction volumes at a fraction of the cost, all while inheriting Ethereum's robust security model.
How does STRK differ from ETH on the network?
ETH is used to pay for gas fees on the base Ethereum layer. STRK is the native token of the Starknet L2, used for paying transaction fees on its own network, staking for network security, and participating in governance decisions. The network offers a dual-fee model, allowing users to pay with either asset.
Can anyone become a validator or sequencer on Starknet?
The path to becoming a sequencer or validator on Starknet is being actively developed. The planned mechanism will likely involve staking STRK tokens to participate in these critical network functions, ensuring the system remains decentralized and robust. The exact requirements will be finalized through community governance.
Is Starknet compatible with the Ethereum Virtual Machine (EVM)?
While Starknet is not EVM-equivalent, its Cairo language is highly powerful and optimized for generating STARK proofs. Projects can deploy on Starknet to achieve unparalleled scale. Efforts and tools are continuously being developed to improve interoperability and the developer experience for those familiar with Solidity.
Where can users learn more about building on Starknet?
The best resource is the official Starknet documentation and developer portals, which provide comprehensive guides on the Cairo language and development tools. 👉 Explore comprehensive developer resources
What does the future roadmap look like for Starknet?
The future roadmap is focused on further decentralization, enhancing user experience, and implementing key features like the proof-of-stake mechanism for sequencing. Community governance will play a central role in steering the protocol's development and priorities in the coming years.