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Starknet Foundation allocates 1.8 billion STRK tokens to boost Ethereum’s scaling

Starknet

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TL;DR

  • Starknet Foundation is giving out 1.8 billion STRK tokens to boost Ethereum scalability using ZK roll-up technology, reducing fees and congestion.
  • They’ve set aside 50 million STRK tokens for an Early Community Member Program and 900 million for rewarding contributors and user rebates.
  • This move aims to incentivize user engagement and support StarkWare’s innovative solutions for Ethereum’s challenges.

Starknet Foundation, the governing body behind StarkWare technology, is set to allocate over 1.8 billion STRK tokens in a move aimed at enhancing Ethereum‘s scaling capabilities. This strategic move comes as the foundation continues its efforts to address issues related to slow throughput and high transaction fees on the Ethereum network by leveraging ZK roll-up technology.

StarkWare technology to the rescue

In a recent tweet, the Starknet Foundation revealed its plans to allocate a substantial number of STRK tokens shortly. This allocation is part of the ongoing effort to harness StarkWare technology, which utilizes ZK roll-up techniques to bundle numerous transactions off the Ethereum main blockchain. This bundling process effectively reduces the computational load on the main network, resulting in improved scalability and reduced transaction fees for Ethereum users.

Earlier in October, the Starknet Foundation set aside 50 million STRK tokens for the launch of the Early Community Member Program (ECMP). This initiative is designed to encourage community participation and engagement within the StarkWare ecosystem. By providing incentives to early members, the foundation aims to foster a thriving and supportive community that can contribute to the project’s growth and development.

The Starknet Foundation is committed to recognizing and rewarding the efforts of its users and community members. To this end, the foundation has allocated a significant portion of STRK tokens. A total of 900 million STRK tokens have been earmarked for the Provisions Committee, which is responsible for acknowledging and compensating past and future contributions made by users and members of the StarkWare community.

An equal number of 900 million tokens have been dedicated to user rebates, a move aimed at acknowledging and rewarding users for their essential transactions on the StarkWare network. This initiative is currently in the planning phase, with a new committee being formed to oversee the fair and transparent distribution of STRK tokens to users who play a vital role in the network’s operation.

Fostering user engagement and development

The allocation of STRK tokens for user rebates not only incentivizes users but also underscores the Starknet Foundation’s commitment to fostering a vibrant and engaged user base. By providing rebates to users for their transactions on the network, the foundation aims to ensure that StarkWare technology remains accessible and beneficial to a wide range of users.

StarkWare’s ZK roll-up technology has emerged as a promising solution to the challenges faced by the Ethereum network, such as scalability and high transaction fees. By bundling multiple transactions off the main blockchain, ZK rollups significantly reduce the computational load and congestion on the Ethereum network, resulting in faster transaction processing and lower fees.

Disclaimer The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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