diff --git a/components/Starknet/modules/architecture_and_concepts/images/STRK_estimated_circulating_supply.jpg b/components/Starknet/modules/architecture_and_concepts/images/STRK_estimated_circulating_supply.jpg new file mode 100644 index 0000000000..dddfc194e0 Binary files /dev/null and b/components/Starknet/modules/architecture_and_concepts/images/STRK_estimated_circulating_supply.jpg differ diff --git a/components/Starknet/modules/architecture_and_concepts/images/planned_distribution_STRK.jpg b/components/Starknet/modules/architecture_and_concepts/images/planned_distribution_STRK.jpg new file mode 100644 index 0000000000..4c6f9424ec Binary files /dev/null and b/components/Starknet/modules/architecture_and_concepts/images/planned_distribution_STRK.jpg differ diff --git a/components/Starknet/modules/architecture_and_concepts/pages/Economics-of-Starknet.adoc b/components/Starknet/modules/architecture_and_concepts/pages/Economics-of-Starknet.adoc index 459e74c1e3..ac5c2e081b 100644 --- a/components/Starknet/modules/architecture_and_concepts/pages/Economics-of-Starknet.adoc +++ b/components/Starknet/modules/architecture_and_concepts/pages/Economics-of-Starknet.adoc @@ -7,16 +7,10 @@ Starknet is a developing decentralized protocol and the economic mechanisms desc [#why_are_economics_relevant] == Why are economics relevant? -Blockchains work through a combination of cryptography and economic incentives. Cryptography limits what actors in the system can do (e.g. transactions must be validly signed to be included in the chain), while economic incentives encourage actors to voluntarily perform actions that maintain the network’s capabilities, while spending their own resources (e.g. miners or stakers actively publish new blocks to the chain because they can take fees and new tokens as a reward). Blockchains are valuable because they are data structures maintained by diverse and, ideally, large groups of otherwise unaffiliated persons. This gives them resilience: any one participant can disappear but the data structure will be preserved. This also gives them censorship resistance: no single person can unilaterally decide to forbid certain persons from using the network. +Blockchains work through a combination of cryptography and economic incentives. Cryptography limits what actors in the system can do, for example, transactions must be validly signed to be included in the chain. Economic incentives encourage actors to voluntarily perform actions that maintain the network’s capabilities when spending their own resources, for example, miners or stakers actively publish new blocks to the chain because they can receive fees and new tokens as a reward. Blockchains are valuable because they are data structures maintained by diverse and, ideally, large groups of otherwise unaffiliated persons. This gives them resilience: Any one participant can disappear, but the data structure is preserved. This also gives them censorship resistance: No single person can unilaterally decide to forbid certain persons from using the network. Starknet operates as a Layer 2 (L2) network on top of Ethereum. Today, Starknet achieves secure low-cost transactions by using the STARK cryptographic proof system to reduce the size of transaction data while preserving and verifying the integrity of that data. Still under development, Starknet will achieve resilience and censorship resistance by using a token, the Starknet token (STRK), to incentivize network participants to sequence transactions for users of the network and to ensure that there is a provably fair mechanism, a proof-of-stake mechanism, to determine who should sequence and submit a proof for the network blocks. A proof-of-stake mechanism might also be used to facilitate data availability solutions and other significant services required for network operations. -// Mini TOC - - - - - [#purpose_of_the_token] == The purpose of the STRK token @@ -52,12 +46,12 @@ The existing ten billion tokens have been or are planned to be distributed accor |12.93% |Grants including Development Partners (aka DPs) |Tokens allocated for grants for research or work done to develop, test, deploy and maintain the Starknet protocol. The process for applications and allocations related to Starknet Foundation Grants will be outlined in a post at a later date. |9.00% |Community Provisions |Tokens distributed to those who contributed to Starknet and powered or developed its underlying technology. |9.00% |Community Rebates |Tokens allocated for rebates in Starknet tokens to partially cover the costs of onboarding to Starknet from Ethereum. Community rebates are not yet available and will be announced in 2024 in a subsequent post. -|https://www.starknet.io/en/content/introducing-the-starknet-foundation[10.00%] |Foundation Strategic Reserves |Tokens allocated for the Starknet Foundation to fund ecosystem activities that are aligned with the Foundation’s mission. +|10.00% |Foundation Strategic Reserves |Tokens allocated for the Starknet Foundation to fund ecosystem activities that are aligned with the https://www.starknet.io/en/content/introducing-the-starknet-foundation[Foundation’s mission]. |8.10% |Foundation Treasury |Token allocated for the Starknet Foundation’s treasury available for operations and other future initiatives by the Starknet Foundation. |2.00% |Donations |Tokens reserved for donations to institutions and organizations, such as universities, NGOs, etc, as decided by the Starknet Foundation. |=== -// Insert chart +image:planned_distribution_STRK.jpg[Planned distribution of STRK] To align long-term incentives of the Investors and Early Contributors with the interests of the Starknet community, and following common practice in decentralized ecosystems, all tokens allocated to Investors and Early Contributors will be subject to the following lock-up schedule, where percentages are based on the total token supply: @@ -67,6 +61,8 @@ To align long-term incentives of the Investors and Early Contributors with the i Through this lock-up period, token holders cannot transfer, sell, or pledge their STRK tokens. Delegation of voting is permitted with locked tokens and, when available, staking might also be permitted. +image:STRK_estimated_circulating_supply.jpg[Estimated supply of STRK in circulation] + ==== _Token allotments currently retained by the Starknet Foundation, while contractually unlocked, are not considered circulating unless granted, donated, or otherwise allocated out of originating wallets through future grants, provisions, donations, developer initiatives, or other programs._ ====