Why StarkWare Faces Backlash Over Token Design

Ethereum second layer scalability company StarkWare confirmed the rumors about the upcoming launch of the StarkNet token. The asset is aimed at enabling the project to operate a decentralized ecosystem and to create an effective mechanism to “direct its evolution”. Related Reading | Polygon Climbs 20% On Disney Glee – Can MATIC Sustain Gains This Month? The StarkNet is an Ethereum second layer scalability solution based on Zero Knowledge (ZK) Rollup technology. This provides decentralized applications (dApps) with “unlimited” scalability without compromising security, decentralization, and composability. The StarkNet Token was designed to power and incentivized the key elements on this network. The announcement claims these are StarkNet’s users, operators, and developers. In that sense, the company has implemented a fee structure and token minting mechanism to prevent “speculative manipulation”, with “largely automated” processes, and a track record of efficient functionality across other blockchains. The announcement is very explicit about the important roles of Operators and Developers. Thus, these components of the StarkWare ecosystem will receive a portion of the StarkNet token. For example, smart contract developers will be rewarded with a portion of the fees paid by users for leveraging L1 and L2 smart contracts. This process will be automated, according to the design explained above. The more a project or smart con...