June 5, 2024
Starknet Introduces $25M Token Incentive
Latest Cryptocurrency News

Starknet Introduces $25M Token Incentive

The Starknet Foundation introduces its Catalyst program, set to allocate 20 million Starknet (STRK) tokens to the network’s most advanced projects. A disclosure reveals that around $25.2 million worth of Starknet tokens will be distributed among the top 21 projects in the ecosystem.

Incentivizing Innovation in the Starknet Ecosystem

Diego Oliva, the CEO of Starknet Foundation, elaborates on the selection process, stating that the program aims to reward the top user-facing protocols based on various factors evaluated by the Stark Foundation in collaboration with an independent third party. Olivia said:

“We looked at a range of metrics with varying weights such as Total Value Locked, Fees Generated, Active Users, External Funding, Security Audits as well as several other metrics.”

The grants program is designed to expedite innovation on its Ethereum layer-2 scaling solution, leveraging zero-knowledge rollup technology. The grants will be categorized into two sections, distinguishing advanced-stage projects from emerging ones built on the network.

Recognition for Leading Projects and Emerging Use Cases

The initial six projects qualifying for the grants include Ekubo, a token launch platform; AVNU, a DeFi protocol enabling gasless trading; Influence, a fully on-chain grand strategy game; Realms, an on-chain gaming universe; Nostra, a DeFi protocol integrating an upcoming crypto super app; and ZKX, a decentralized perpetual futures exchange.

Web3 gaming stands out as a prominent emerging use case for Starknet, driving the network’s focus on developing high-speed infrastructure with minimal transaction fees. Oliva expresses his vision beyond gaming and DeFi, anticipating the grants program to ignite creativity in blockchain use cases on the network.

“Starknet has rolled out and will continue to roll out a series of upgrades focused on improving transaction speeds, reducing latency and transaction costs. This benefits on-chain games as well as DeFi applications, which is another group of applications that are seeing a lot of success of Starknet.”

Strengthening Starknet Ecosystem

Starknet currently ranks as the seventh-largest Ethereum layer 2 network, boasting over $1.08 billion in total value locked (TVL) and capturing a 2.32% market share, according to L2beat. Ethereum layer-2 networks collectively hold over $46 billion in cumulative TVL.

Top 10 Ethereum-layer 2 networks. Source: L2beat

The launch of the project grants program follows the Starknet Foundation’s recent announcement of a $5 million seed grants program. This initiative aims to support at least 200 promising teams with $25,000 in USD Coin (USDC) each, providing a final push for final-stage projects to launch on Starknet.

The Foundation plans to introduce additional grant programs under the Catalyst program’s framework in the future, further strengthening the ecosystem and fostering innovation within the community.

Image by bearfotos on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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