Starknet Token Explained: An Informative Deep Dive into STRK
If you’re curious about the Starknet token, its price, tokenomics, and how to buy it, you’re in the right place! Let’s dive into what makes the STRK token unique.
What is Starknet?
Two common questions often come up:
- Is Starknet built on Ethereum? Yes, it is.
- Is Starknet a Layer 2 solution? Yes, Starknet is an Ethereum Layer 2.
Starknet was developed by StarkWare Industries, the creators of the STARK proof system. This system enables scalable, transparent verification of computations. In simpler terms, it helps solve the scalability issues on Layer 1 blockchains (like Ethereum) by compressing data and verifying it efficiently.
Starknet is a Validity-Rollup (or ZK-Rollup) built on Ethereum. It’s designed to handle more transactions than other rollups, and it’s expected that all Layer 2 solutions will eventually adopt STARK technology.
Starknet Alpha launched on Mainnet in November 2021, sparking a global ecosystem focused on decentralization and community governance. StarkWare’s most recent funding round valued the company at $8 billion.
How does Starknet work?
Starknet uses STARK technology to bundle and verify transactions. These bundled transactions are sent to Ethereum for proof verification, which significantly boosts throughput (transactions per second) and reduces costs by 10x.
In short, Starknet scales blockchain computation while maintaining Ethereum’s security. This allows developers to create decentralized apps (dApps) that were previously impossible on the blockchain.
What makes Starknet unique?
Starknet stands out because of several key features:
- Native Account Abstraction: This makes interacting with applications easier, without the hassle of managing private keys.
- Scalability: Starknet can handle a high volume of transactions, making it ideal for fast, low-fee applications.
- Security: Built on Ethereum, Starknet inherits its strong security and decentralization.
- Low Transaction Fees: Starknet’s low fees make its dApps more affordable to use.
What is the Starknet token (STRK)?
The STRK token is the native cryptocurrency of Starknet and serves several purposes:
- Transaction Fees: Pay gas fees with STRK.
- Staking: Participate in the Starknet protocol by staking STRK (coming soon).
- Governance: Vote on key decisions regarding the future of Starknet.
For more details, check out the 3-part Starknet token explainer.
Starknet Token Price, Supply, and Tokenomics
- STRK Price: You can find the current price of STRK to USD here.
- Total Supply: According to Starknet’s official website, there is a total supply of 10 billion STRK tokens. The circulating supply will grow as the protocol expands.
Token Distribution:
StarkWare has allocated the initial 10 billion STRK tokens as follows:
- 17% to investors
- 32.9% to core contributors (StarkWare, employees, consultants, developers)
- 50.1% to the StarkNet Foundation for research, grants, donations, rebates, and reserves
To ensure long-term commitment, tokens allocated to contributors and investors are locked for 4 years, with a linear release and a one-year cliff.
First Starknet Airdrop Breakdown
Starknet plans to allocate over 1.8 billion STRK tokens to initiatives that support the growth of its ecosystem:
| Who/What | Amount of STRK | Objective |
| Provisions Committee and Initial Distribution of STRK | 900M | Distribute ownership of the network’s native token |
| Community Rebates | 900M | Reward users for transactions and rebate them for gas fees |
| DeFi Incentive Program | 40M | Direct and indirect incentives for activity on DeFi protocols |
Utility: What Are the Uses of the STRK Token?
The STRK token has three main uses:
- Transaction Fees: Use STRK to pay gas fees on the Starknet network.
- Staking: Staking functionality is to be determined (TBD).
- Governance: Holders can vote directly, or delegate their votes, on important decisions that affect the security, maintenance, and overall direction of Starknet.
Is Starknet a Good Investment?
Whether Starknet is a good investment depends on a few key factors:
Innovative Tech: Starknet uses cutting-edge zk-Rollup technology, making it fast, scalable, and secure. This could attract more dApps and users over time.
Growth Potential: As a leading Ethereum Layer 2 solution, Starknet has strong growth prospects if Layer 2 adoption increases.
Strong Backing: Developed by StarkWare, a company valued at $8 billion, Starknet has solid support and resources for long-term growth.
Competition: It faces competition from other Layer 2s like Optimism and Arbitrum, which could impact its future success.
Risk: Like all cryptocurrencies, STRK is volatile and comes with risks tied to market conditions.
In short, Starknet has strong potential but also carries the typical risks of crypto investing. Make sure to do thorough research before investing.
How to Buy Starknet Tokens (STRK)
Buying STRK is easy! Follow these three steps:
- Download the Braavos Wallet: It’s free and essential for Starknet transactions.
- Onboard Funds: Use credit cards, bank transfers, centralized exchanges, or the StarkGate bridge to fund your wallet.
- Buy STRK: Purchase STRK directly from the Braavos Wallet using the Swap function.
Why Should You Use Braavos Wallet?
If you’re unsure which wallet to use, here’s why Braavos is the best choice for Starknet:
- Seamless Transactions: Sign transactions with Face ID and stake crypto with a single click.
- Top-Tier Security: Protect your assets with Two-Factor Authentication (2FA) and Three-Factor Authentication (3FA).
- Decentralized Control: Enjoy full financial freedom with a decentralized wallet.
- All-in-One: Access all your favorite DeFi dApps in one place using the Braavos dApp Gallery.
- Transaction Tracker: Easily keep track of all your transaction history.
Download Braavos now and get started with DeFi on Starknet!
