The Starknet token, STRK, will soon be launched to the public - and the network’s unique approach to decentralization and overall scaling technology could give token-holders lasting value.

**Starknet **25 Aug 2023 • 5 min read

Nearly 12 months after it was deployed on Ethereum, Starknet’s STRK token will soon be provisioned and be made available to the public.

The release comes at a time when Starknet is going through a period of rapid growth. Network speeds are increasing dramatically; UX improvements are hurtling down the pipe.

So it’s no surprise that the crypto community is homing in on the Starknet token launch price, in the hope of making quick profits. But we believe this is the wrong approach. Instead of focusing on the token price, you should focus on the token value.

Because STRK isn’t designed like other crypto assets. As the emblem and motor of the decentralization strategy created by Starknet’s creator, StarkWare, the token will allow users to protect the network, decide its future direction, and benefit from a better approach to transaction fees.

Now we’re going to dig into this, focusing specifically on two key aspects:

• The role of STRK within the Starknet decentralization model.

• The individual use cases of the token within the Starknet ecosystem.

As mentioned, price isn’t the focus of this article. However many members of our community have asked for information about the token price, so here’s some information you may find useful.

So any prediction regarding the initial price of the Starknet token would be foolish and impractical.

These include:

• An imminent upgrade.

• A new use case for its underlying technology.

• A rebrand.

• A new roadmap.

• A surge in adoption, be it usage, trading activity or total value locked (TVL).

For example, Optimism’s price surged in February 2023 as usage suddenly increased and Coinbase said it was using OP technology to build its own Layer 2 network, Base.

These include

• A reduction in transaction costs through a new data availability model.

• A change to the block-creation model which will lead to major UX improvements, facilitating the creation of short, fixed block intervals.

• The infrastructure that allows wallets to cater gas payments in any ERC-20 token.

• And much more.

However, this does not mean that the Starknet token price is going to increase. Crypto prices are volatile and can go down as well as up, so be sure to do your own research.

As noted in a proposal published in July 2022, Starknet’s approach to decentralization has two guiding aims:

1. To create a public good, like Ethereum or the internet, which is available to all.

2. To ensure that the operation and evolution of the network does not rely on any single entity. So even if StarkWare ceased to exist, Starknet would continue.

The Starknet token translates these aims from theory to practice. As the proposal notes, the token “is needed to operate the ecosystem, maintain and secure it, decide on its values and strategic goals, and direct its evolution.”

Ok. So, If I hold STRK tokens, what does this mean for me?

A lot of crypto tokens give you governance rights. That is, they enable you to vote on proposed changes to the protocol in public forums, such as Snapshot, and propose your own changes (although proposals are only possible with certain projects).

But Starknet takes this further.

With Starknet, the STRK token provides three specific utility outlets:

1. Governance, so you can vote on changes to the Starknet protocol.

2. Staking, enabling you to commit your tokens to secure the network.

3. Gas fees, allowing you to fund your transactions without ETH.

Can you give me more info on these Starknet token use cases?

Sure. Let’s go deeper into each one.

The first phase of Starknet’s governance proposal went live in December 2022. This means that, as a token-holder, you can now vote on changes to the Starknet project.

In the first phase of governance, you can only vote on changes to the protocol itself. Over time, however, the scope of governance will widen and you’ll have the chance to vote across a wider range of areas.

Here’s how the process works:

1. Changes are proposed by the recently created Starknet Foundation.

2. You and the rest of the community have at least six days to try them on testnet.

3. At the end of these six days, the proposal is put to a vote on testnet.

In the future, the process may be amended to allow STRK-holders to propose changes as well as vote on them.

Given the number of changes planned by Starknet over the next few months, it’s an ideal time to join the conversation.

Staking is a blockchain consensus mechanism whereby community members volunteer to undertake validation and other key services, and stake (or commit) their tokens as a form of bond to guarantee good conduct.

This mechanism, known as proof of stake, makes the network more secure by distributing control and reducing the likelihood of a 51% attack.

The concept has been pioneered by the Layer 1 Ethereum blockchain, and in fact, even on Starknet you have the chance to Stake your ETH and join Ethereum’s proof-of-stake system (Braavos, for example, offers Stake+, which is currently providing over 5% yield).

Starknet currently does not run a full proof-of-stake consensus mechanism for transaction validation, as its proving system relies on math rather than human overseers.

However, Starknet will rely on consensus to approve the transaction blocks created by the sequencer, and in a lengthy post about the future decentralization strategy, the project team have talked about achieving “permissionless and decentralized consensus through a proof-of-stake leader election for sequencing and proving STARK-compressed transactions.”

Stakers on Layer 1 Ethereum receive rewards in the form of interest and a share of trading fees. Starknet has yet to announce its own mechanism, but whatever the Starknet community decides, one thing we can say for certain is that, by staking your tokens, you’ll be helping to make the entire network stronger for everyone.

Perhaps the most unique feature of Starknet’s token roadmap is the ability to pay gas in STRK. In its token distribution roadmap, for example, Starknet has written that:

**“**Currently, fees in Starknet are paid in Ether (ETH). But later on, we anticipate fees will be paid exclusively with the native Starknet Token. To support good user experience, automated and decentralized on-chain mechanisms will allow users to pay fees in ETH.”

When this feature is introduced, it will add an intrinsic utility to the token, which is much more than that of regular governance assets.

Summary

While Starknet’s future prospects are extremely promising, and the crypto ecosystem is bullish about the Starknet token price, we’d urge you to take a longer-term view of the asset.

STRK isn’t just a unit of account and a medium of exchange, it’s a chunk of Starknet itself. As the network strives to become the most scalable of all Layer 2 rollups, the native token will allow you to shape Starknet’s future and secure it, too.

The Starknet token, STRK, will soon be launched to the public - and the network’s unique approach to decentralization and overall scaling technology could give token-holders lasting value.

**Starknet **25 Aug 2023 • 5 min read

Nearly 12 months after it was deployed on Ethereum, Starknet’s STRK token will soon be provisioned and be made available to the public.

The release comes at a time when Starknet is going through a period of rapid growth. Network speeds are increasing dramatically; UX improvements are hurtling down the pipe.

So it’s no surprise that the crypto community is homing in on the Starknet token launch price, in the hope of making quick profits. But we believe this is the wrong approach. Instead of focusing on the token price, you should focus on the token value.

Because STRK isn’t designed like other crypto assets. As the emblem and motor of the decentralization strategy created by Starknet’s creator, StarkWare, the token will allow users to protect the network, decide its future direction, and benefit from a better approach to transaction fees.

Now we’re going to dig into this, focusing specifically on two key aspects:

• The role of STRK within the Starknet decentralization model.

• The individual use cases of the token within the Starknet ecosystem.

As mentioned, price isn’t the focus of this article. However many members of our community have asked for information about the token price, so here’s some information you may find useful.

So any prediction regarding the initial price of the Starknet token would be foolish and impractical.

These include:

• An imminent upgrade.

• A new use case for its underlying technology.

• A rebrand.

• A new roadmap.

• A surge in adoption, be it usage, trading activity or total value locked (TVL).

For example, Optimism’s price surged in February 2023 as usage suddenly increased and Coinbase said it was using OP technology to build its own Layer 2 network, Base.

These include

• A reduction in transaction costs through a new data availability model.

• A change to the block-creation model which will lead to major UX improvements, facilitating the creation of short, fixed block intervals.

• The infrastructure that allows wallets to cater gas payments in any ERC-20 token.

• And much more.

However, this does not mean that the Starknet token price is going to increase. Crypto prices are volatile and can go down as well as up, so be sure to do your own research.

As noted in a proposal published in July 2022, Starknet’s approach to decentralization has two guiding aims:

1. To create a public good, like Ethereum or the internet, which is available to all.

2. To ensure that the operation and evolution of the network does not rely on any single entity. So even if StarkWare ceased to exist, Starknet would continue.

The Starknet token translates these aims from theory to practice. As the proposal notes, the token “is needed to operate the ecosystem, maintain and secure it, decide on its values and strategic goals, and direct its evolution.”

Ok. So, If I hold STRK tokens, what does this mean for me?

A lot of crypto tokens give you governance rights. That is, they enable you to vote on proposed changes to the protocol in public forums, such as Snapshot, and propose your own changes (although proposals are only possible with certain projects).

But Starknet takes this further.

With Starknet, the STRK token provides three specific utility outlets:

1. Governance, so you can vote on changes to the Starknet protocol.

2. Staking, enabling you to commit your tokens to secure the network.

3. Gas fees, allowing you to fund your transactions without ETH.

Can you give me more info on these Starknet token use cases?

Sure. Let’s go deeper into each one.

The first phase of Starknet’s governance proposal went live in December 2022. This means that, as a token-holder, you can now vote on changes to the Starknet project.

In the first phase of governance, you can only vote on changes to the protocol itself. Over time, however, the scope of governance will widen and you’ll have the chance to vote across a wider range of areas.

Here’s how the process works:

1. Changes are proposed by the recently created Starknet Foundation.

2. You and the rest of the community have at least six days to try them on testnet.

3. At the end of these six days, the proposal is put to a vote on testnet.

In the future, the process may be amended to allow STRK-holders to propose changes as well as vote on them.

Given the number of changes planned by Starknet over the next few months, it’s an ideal time to join the conversation.

Staking is a blockchain consensus mechanism whereby community members volunteer to undertake validation and other key services, and stake (or commit) their tokens as a form of bond to guarantee good conduct.

This mechanism, known as proof of stake, makes the network more secure by distributing control and reducing the likelihood of a 51% attack.

The concept has been pioneered by the Layer 1 Ethereum blockchain, and in fact, even on Starknet you have the chance to Stake your ETH and join Ethereum’s proof-of-stake system (Braavos, for example, offers Stake+, which is currently providing over 5% yield).

Starknet currently does not run a full proof-of-stake consensus mechanism for transaction validation, as its proving system relies on math rather than human overseers.

However, Starknet will rely on consensus to approve the transaction blocks created by the sequencer, and in a lengthy post about the future decentralization strategy, the project team have talked about achieving “permissionless and decentralized consensus through a proof-of-stake leader election for sequencing and proving STARK-compressed transactions.”

Stakers on Layer 1 Ethereum receive rewards in the form of interest and a share of trading fees. Starknet has yet to announce its own mechanism, but whatever the Starknet community decides, one thing we can say for certain is that, by staking your tokens, you’ll be helping to make the entire network stronger for everyone.

Perhaps the most unique feature of Starknet’s token roadmap is the ability to pay gas in STRK. In its token distribution roadmap, for example, Starknet has written that:

**“**Currently, fees in Starknet are paid in Ether (ETH). But later on, we anticipate fees will be paid exclusively with the native Starknet Token. To support good user experience, automated and decentralized on-chain mechanisms will allow users to pay fees in ETH.”

When this feature is introduced, it will add an intrinsic utility to the token, which is much more than that of regular governance assets.

Summary

While Starknet’s future prospects are extremely promising, and the crypto ecosystem is bullish about the Starknet token price, we’d urge you to take a longer-term view of the asset.

STRK isn’t just a unit of account and a medium of exchange, it’s a chunk of Starknet itself. As the network strives to become the most scalable of all Layer 2 rollups, the native token will allow you to shape Starknet’s future and secure it, too.