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Brandy Betz
Brandy covers crypto-related venture capital deals for CoinDesk.
StarkWare, which created the StarkNet blockchain scalability solutions, confirmed Wednesday the creation of the long-rumored StarkNet token to help maintain, secure and evolve the ecosystem.
- The existence of a StarkNet token was hinted at on Tuesday by emails posted to Twitter by Three Arrows Capital co-founder Su Zhu, who had returned to social media for the first time since the crypto hedge fund imploded to criticize liquidators.
- “The StarkNet [t]oken is needed to operate the ecosystem, maintain and secure it, decide on its values and strategic goals, and direct its evolution. This token will be required for (i) governance, (ii) payment of transaction fees on StarkNet, and (iii) participation in StarkNet’s consensus mechanism,” according to the StarkWare Medium post.
- The token will go on Ethereum as an ERC-20 token in September. The company has minted an initial 10 billion tokens, which will be allocated to core StarkNet contributors, including StarkWare, StarkWare investors and StarkNet developer partners.
- Tokens will also go to the new StarkNet Foundation, a non-profit dedicated to maintaining the network as a public good.
- StarkWare was last valued at $8 billion in a $100 million funding round in May, up from a $2 billion valuation last November.
UPDATE (July 13, 20:13 UTC): Swapped in new lead image.
