The anticipation surrounding the Ethereum Layer 2 network, Starknet, has reached a crescendo as the Starknet Foundation reveals plans to distribute a staggering 1.8 billion tokens as user rewards and rebates. While precise details are still in the development phase, this move is poised to reshape the landscape of token allocation within the blockchain sphere.

A pivotal aspect of this groundbreaking initiative involves the formation of various committees entrusted with the responsible distribution of these Layer 2 blockchain tokens, as per a recent statement.

The spotlight shines on the “Provisions Committee,” mandated to oversee the allocation of 900 million Starknet (STRK) tokens. These tokens are earmarked to reward both historical and forthcoming contributions from users and community members. The phased distribution, slated to commence in the first half of 2024, marks a significant step in recognizing and incentivizing the invaluable input of the community.

The Starknet Foundation’s recent confirmation of a token airdrop snapshot further amplified the buzz around this venture. A draft outlining eligibility criteria for the impending airdrop surfaced briefly on the foundation’s website, subsequently circulating across social media platforms.

“We’ve been diligently crafting the first phase of distributions and are on the brink of finalizing it. Stay tuned for more formal updates,” shared a representative from the Starknet Foundation, hinting at imminent developments.

Beyond user rewards, the foundation aims to implement “user rebates” aimed at subsidizing transaction costs. A second committee is in the works, tasked with distributing 900 million tokens to cover transaction fees for network users.

Simultaneously, a third group, the “DeFi Committee,” is gearing up to allocate an initial 50 million tokens. Their mission: to foster activity on DeFi protocols within the network, fostering an environment conducive to augmenting liquidity in the network’s DeFi ecosystem.

The foundation previously outlined the issuance of a total of 10 billion Stark (STRK) tokens, with 50% earmarked for retention by the organization. The remainder is slated for distribution among core developers, ecosystem contributors, and the community at large.

Source: https://azcoinnews.com/starknet-foundations-strategy-allocating-1-8-billion-tokens-for-rewards-and-network-rebates.html