$STRK is the native token of Starknet, an Ethereum Layer 2 that uses STARK cryptographic proofs to execute transactions away from Ethereum while ultimately settling verified results back to Ethereum.
One important change in Starknet’s token design is that STRK is no longer limited to governance.
Since Starknet v0.14.0, transaction fees on the network are paid in $STRK. The token is also part of Starknet’s staking system, where validators and delegators participate in network security.
Validators currently need at least 20,000 STRK to participate directly, while delegators can delegate without the same minimum requirement.
Another factor to understand is supply. Starknet initially created 10 billion STRK, but its supply is not permanently fixed. Staking rewards can introduce newly minted STRK, while scheduled token unlocks also affect circulating supply.
This means there are several different variables to monitor when studying $STRK: network activity, fees paid in STRK, the amount staked, validator participation, token unlocks and inflation from staking rewards.
Those metrics explain the token’s economics better than simply describing Starknet as another Ethereum scaling network.
One important change in Starknet’s token design is that STRK is no longer limited to governance.
Since Starknet v0.14.0, transaction fees on the network are paid in $STRK. The token is also part of Starknet’s staking system, where validators and delegators participate in network security.
Validators currently need at least 20,000 STRK to participate directly, while delegators can delegate without the same minimum requirement.
Another factor to understand is supply. Starknet initially created 10 billion STRK, but its supply is not permanently fixed. Staking rewards can introduce newly minted STRK, while scheduled token unlocks also affect circulating supply.
This means there are several different variables to monitor when studying $STRK: network activity, fees paid in STRK, the amount staked, validator participation, token unlocks and inflation from staking rewards.
Those metrics explain the token’s economics better than simply describing Starknet as another Ethereum scaling network.