STARKWARE Fume After Token Announcement

Ever since StarWare, Ethereum second layer scalability company, confirmed the ongoing rumors about the upcoming launch of the StarkNet token, there has been a storm of backlash over its token design.

Let’s touch down on some important points.

StarkNet is an Ethereum second layer scalability solution based on Zero Knowledge (ZK) Rollups. As a result, decentralized applications (dApps) will have "unlimited" scalability without compromising security, decentralization, or reusability.

The StarkNet Token was designed to power and incentivize the key elements on this network. StarkNet's announcement claims these are its users, operators, and developers.

Fee structure and token minting mechanisms have been implemented to prevent "speculative manipulation", with "largely automated" processes, and a track record of efficient functionality on other blockchains.

The announcement emphasizes the importance of Operators and Developers. Thus, these components of the StarkWare ecosystem will receive a portion of the StarkNet token.

The company claims it has minted ten billion StarkNet tokens with the following allocation: 32.9% for “Core Contributors”, 50.1% to be granted by StarkWare to the recently created StarkNet Foundation, and a 17% for StarkWare investors.

Some members of the crypto community disagreed with the token allocation claiming users and operators, allegedly two major components of the ecosystem, will not receive proper compensation.

What are your thoughts on it?