The Ethereum (ETH) layer-2 scaling project Starknet plans to kick off its first token allocation this month.
In a new announcement, the project notes it will distribute more than 700 million Starknet tokens (STRK) to nearly 1.3 million addresses starting on February 20th.
Eligible individuals and groups will have four months to claim their tokens, and unclaimed STRK will be distributed in future rounds.
The Starknet Foundation says the tokens will be allocated to community members and used for paying transaction fees, staking and governance.
“STRK will be distributed to individuals and groups that have helped to lay down the roots of Starknet. This includes Starknet users, developers, and community contributors; StarkEx users; Ethereum protocol contributors and stakers; and developers of select non-crypto open-source projects.”
The Starknet is a decentralized validity rollup, otherwise known as a zero-knowledge (ZK) roll-up.
Rollups are solutions that execute transactions outside of Ethereum’s blockchain but record the transactional data. The two types of rollups are optimistic rollups and ZK rollups. Optimistic rollups automatically assume transactions are valid, while ZK rollups run computations off the chain and then submit a validity report.
Starknet plans to devote 1.8 billion STRK tokens to the community in total, according to the project’s recent announcement.
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