CDS Crypto News Starknet Foundation Plans to Allocate 40 Million Tokens to DeFi Protocols

Crypto News

Starknet Foundation Plans to Allocate 40 Million Tokens to DeFi Protocols

The distribution of STRK over the span of eight months marks the initial phase of a comprehensive program aimed at expanding and enhancing DeFi within the layer 2 blockchain network.

Ecem EFE19/02/20241 Mins read400

Crypto News- On Monday, the Starknet Foundation revealed its plans to allocate a total of 40 million STRK tokens to DeFi protocols native to its layer 2 blockchain network, Starknet, which leverages zero-knowledge technology. According to a press release shared with Unchained, the foundation’s DeFi committee will distribute these tokens every two weeks over a period of six to eight months to selected DeFi protocols on Starknet. Notable recipients include lending and borrowing application Nostra, decentralized exchange Ekubo, and options platform Carmine.

Starknet Foundation Plans to Allocate 40 Million Tokens to DeFi Protocols

The decision to distribute tokens to DeFi protocols comes amid mixed reactions from the crypto community regarding Starknet Foundation’s airdrop strategy, which allowed approximately 1.3 million addresses to claim STRK on Feb. 20. The forthcoming DeFi distribution program, slated to commence on Feb. 22, marks the initial phase of the committee’s efforts to scale and enhance DeFi on Starknet. Additionally, the committee has earmarked 10 million STRK for forthcoming initiatives in the second or third quarter of this year. Potential initiatives include hosting DeFi hackathons and funding project grant programs and short-term incentive programs.

While Starknet will allocate tokens to chosen protocols, the protocols themselves will decide how tokens are distributed to their users. “Each protocol will be responsible for their own distribution of STRK and may implement different programs for how and which users will be able to earn STRK,” stated the foundation.

Decentralized finance represents a sub-ecosystem within the crypto space, facilitating financial activities such as lending, borrowing, and trading without traditional intermediaries like banks. The locked value in Starknet’s smart contracts currently stands at $54.2 million, reflecting a nearly 42% increase since the beginning of 2024, as per data from DefiLlama.

Sources:unchainedcrypto

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Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.