Starknet Token Explained: An Informative Deep Dive into STRK
If you want to understand what the Starknet token is and learn about its price and tokenomics, you’re in the right place! You’ll also find out how to buy the STRK token.
What is Starknet?
StarkWare Industries is the tech wizard behind Starknet. It invented the STARK proof system, a scalable transparent argument of knowledge technology that is a powerful tool for computational integrity. Simply put, it allows for verifying the correctness of computations performed on public data in a trustless manner, where the verification process is very efficient. In the blockchain context, it allows the compressing of information to address the scalability problem of the layer-1 (e.g.: the Ethereum blockchain).
StarkWare develops Starknet, a Validity-Rollup (or ZK-Rollup) Layer 2 network. It is the rollup technology that will be able to handle the highest amount of transactions and at this point, it is clear that all Layer-2s will converge to STARK eventually.
Starknet Alpha launched on Mainnet in November 2021 as stated by StarkWare’s official website. It sparked a global ecosystem with a focus on decentralization and community-driven governance.
StarkWare had a recent valuation of 8 billion dollars in its last funding round.
How does Starknet work?
Starknet uses the STARK technology to create proofs and verify transactions. Transactions on Starknet are bundled into a single transaction that gets proved and submitted to Ethereum, which in turn verifies the proof of correctness. This results in orders of magnitude higher throughput (TPS) and x10 lower costs.
In other words, Starknet massively scales blockchain computation while keeping the robust security of Ethereum intact. It allows dApp to explore new and uncharted territories, never been possible before on the blockchain.
What makes Starknet unique?
Starknet stands out for several key features:
- Native account abstraction makes interaction with applications much more user-friendly without the need to manage private keys.
- Starknet is highly scalable. It will be able to process a great number of transactions per second, which makes it ideal for high-throughput, low-fee applications.
- Built on Ethereum, Starknet inherits its security and decentralization.
- Starknet has low transaction fees. This makes Starknet dApps more affordable to use.
What is the Starknet token (STRK)?
The STRK token is the native cryptocurrency of Starknet. It serves several purposes and can be used for:
- Paying transaction fees
- Participating in the Starknet protocol (STRK staking)
- Participating in Starknet’s governance
More information can be found in this 3-part Starknet token explainer.
Starknet token Price, Total Supply & Tokenomics
Price: STRK token to USD
You can find the current STRK price to USD here.
Total Supply of Starknet tokens
The STRK token has a total supply of 10.000.000.000 (ten billion) tokens, according to Starknet’s official website. The circulating supply grows over time, mirroring the protocol’s growth.
According to StarkWare’s article, the distribution of the initial 10 billion STRK tokens is as follows:
- 17% is allocated to StarkWare investors
- 32.9% is allocated to core contributors, including StarkWare, its employees, consultants, and developer partners
- 50.1% is allocated to the StarkNet Foundation, plus research grants, donations, provisions, rebates, and strategic reserves.
Additionally, to ensure long-term commitment, Starknet tokens allocated to Core Contributors and Investors are subject to a 4-year lock-up period, with linear release and a one-year cliff.
First Starknet Airdrop Breakdown
Starknet plans to allocate over 1.8 billion to different initiatives that drive the growth and adoption of the Starknet ecosystem. Here’s the breakdown.
|Amount of STRK
|Provisions Committee and Initial Distribution of STRK
Distribute ownership of the network’s native token
|Reward users for transactions and rebate them for gas fees
|DeFi Incentive Program
|Direct and indirect incentives for activity on DeFi protocols
Utility: What are the uses of the STRK token?
The Starknet token can be used for 3 different purposes:
- Transaction fees: You can pay gas fees with STRK.
- Staking: TBD
- Governance: You can vote, directly or through delegation, on all essential changes to Starknet impacting its vitality, security, and maintenance.
How can I buy Starknet tokens?
Buying STRK is easy. You can do that in 3 simple steps:
Step 1: Download Braavos Wallet – It’s Free
We recommend getting a Starknet wallet like Braavos. To understand why this is essential, check out the next section below.
Step 2: Onboard funds – In Any Way
Credit cards, bank transfers, centralized exchanges, or the StarkGate bridge – Braavos offers multiple onboarding options to suit your preferences.
Step 3: Buy STRK in your wallet
The STRK is available to buy directly from the Braavos Wallet Swap function.
Why should I use Braavos wallet?
If you’re still not sure which wallet to use, let’s shed light on why Braavos is your best choice:
- Seamless Transactions: Sign your transactions with Face ID and stake your crypto with a single click.
- Top-Tier Security: With Two-Factor Authentication (2FA) and Three-Factor Authentication (3FA), you can rest assured your assets are safe.
- Decentralization: Enjoy your financial freedom with a decentralized wallet.