The Starknet Foundation plans to allocate 1.8 billion STRK tokens for network development.

The Starknet Foundation – the organization behind the Ethereum Layer 2 network, Starknet – recently announced plans to allocate more than 1.8 billion STRK tokens to a number of initiatives.

The move aims to drive the adoption and growth of the Starknet blockchain.

Allocation of 1.8 billion STRK tokens

According to the official announcement, 900 million STRK has been allocated to the Service Delivery Committee to distribute ownership of the network's native tokens and reward past and future contributions by users and community members.

The team has been working on the distribution of the first phase for some time and is nearing completion.

Another 900 million STRK is set aside for discounts to users for their transaction payments in the network. The foundation indicated that the plan for this program is in progress, and a newly formed committee will control the distribution of STRK to recognize the important transactions made by users on the network.

An initial reserve of 500 million STRK has been set aside to explore direct, indirect and backward-incentives for activity on DeFi protocols. The DeFi Committee is overseeing this initiative, and they are nearing the conclusion of their research phase with plans for implementation and deployment in Q1 2024.

“StarkNet is about each of you. Every user, developer and member of our community – current and future – is a vital part of building our network for the next generation of decentralization. StarkNet's success depends on it.”

Rumors of air drop

Starknet operates as a decentralized Layer 2 network on the Ethereum blockchain, using a zero-knowledge package solution. This strategy involves hashing multiple transactions off-chain before they are published collectively on the Ethereum network.

Earlier this month, the Starknet Foundation responded to rumors of a possible airdrop following the circulation of scripts on social media. The foundation emphasized that the screenshots in question show draft plans that are still being developed.

It explained that the date of termination of eligibility for the airport has been established and no further user actions can affect this deadline.

In October, the Starknet Foundation announced plans to issue around 50 million STRK tokens as part of the Early Community Member Program (ECMP).