Thread by @StarknetEco

Welcome to “Starknet Science”- by @starkience!

The thread where we explore the science behind #Starknet for everyone.

This time we will be unveiling the Power of the $STRK Token and the structure behind it.

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Please be aware that the following tweet does not provide official information from StarkWare or the Starknet foundation.

It is solely an analysis conducted by our community-led initiative, using available online resources as references.

“STRK will be used as a staking token for participation in StarkNet’s consensus mechanisms, as a Governance token, and for paying transaction fees.” - StarkWare

The STRK token is designed to serve the needs of users, operators and developers of the network.

Token minting and transaction fees mechanism are meant to follow these preferences:

▶️Largely automated mechanisms to avoid human participation

▶️Mechanisms that are known and have been tested in other networks

▶️Resistant to speculative manipulation and non-value-creating gamification

▶️A user-friendly experience.

Who are the Starknet operators?

Operators are those who contribute to the computing resources for transaction sequencing, STARK-proof generation, and long-term storage.

They play a vital role in ensuring continuous operation and delivering the superior performance

Who are the #Starknet developers?

Those constructing and upkeeping the software used by Operators to ensure network security, as well as designing applications that enhance the network's capabilities for users.

Fees & tokens will go to Smart Contract & Core Devs. Smart contract devs are rewarded based on the value provided to the network, with contracts generating higher fees receiving a larger share of tokens, determined by the fees paid by users on both L1 and L2.

Determining token distribution for Core Devs and other contributors who fall outside the protocol's quantifiable metrics requires human judgment.

A decentralized model will be implemented to ensure consistency with the goal of decentralization.

Ten billion off-chain minted tokens are designated as $STRK Tokens. These tokens do not represent equity or grant participation rights or claims in StarkWare. The circulating supply will gradually increase as the protocol mints new tokens based on a community-determined schedule.

50.1% of the existing StarkNet tokens are allocated to the StarkNet Foundation to fulfill its goals. These tokens are not locked, but the Foundation requires time to develop a detailed mechanism for their further allocation.

Tokens given to Core Contributors and Investors will be locked up for 4 years and gradually released over time. There will be an initial period of 1 year in which the tokens cannot be sold. These locked tokens can be used for voting and staking but cannot be transferred or traded

valued software contributors will receive tokens automatically, and measures are in place to prevent misuse and offer lower fees for developers. Token grants are available for protocol-related work.

Users should use Starknet for their current needs without expecting token rewards. The community has provisions to filter out abuse based on past usage, and community rebates only apply to future transactions.

While existing tokens like BTC or ETH can resist payment censorship, they can't create a specific community or give users a voice in decisions.

A native token rewards community members who contribute to the network and improves the ecosystem more than a non-native token

Moreover, using a non-native token exposes Starknet to economic shocks from decisions made in other ecosystems, which could affect its users and providers.

Starknet fees are paid in ETH, but in the future, fees will be exclusively paid using the native Starknet Token.

To ensure a smooth user experience, decentralized on-chain mechanisms will be implemented to enable automated ETH fee payments

Some essential Starknet services, such as sequencing, temporary L2 consensus, STARK-proving, and data availability provisioning, may necessitate staking of Starknet Tokens.

These services are expected to become decentralized to enhance liveness and security

Through the Snapshot platform, core users of the network were selected and handed a certain amount of STRK token. These tokens are then used to vote on changes in the protocol.

Significant updates to the Starknet Operating System will require approval from token holders

Thanks for joining us on this journey to understanding the significance of the #Strk token in the #Starknet ecosystem.

Follow us and make sure to check our Homepage to discover the latest #Starknet projects and join us on our journey of innovation 👇

starknet-ecosystem.com

@Starknet
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@odin_free
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@EliBenSasson

Shout out to @starkience & @crypto_gurkha for the post! Also, @0xNurstar for your support!