Starknet
Crypto Overview
Purpose and Utility
Starknet is a Layer 2 scaling solution for Ethereum that uses Zero-Knowledge (ZK) rollup technology. The STRK token was introduced in 2024 as the network's native token, serving multiple utilities: governance rights over the Starknet protocol, paying transaction fees, and staking to secure the network.
Business Model Evaluation
The core business model revolves around providing scaling solutions for Ethereum while maintaining decentralization and security. The platform enables developers to build decentralized applications with higher throughput and lower costs compared to Ethereum's base layer. There are no inherent elements in the business model that conflict with Islamic principles.
Real-World Adoption
Since its token launch in April 2024, Starknet has demonstrated significant adoption metrics: Over 100 million total transactions processed, more than 1.3 million unique addresses, and hundreds of active decentralized applications running on the network. Major projects including Myswap, JediSwap, and zkLend operate on Starknet.
Development Activity
The platform shows robust development activity with regular updates to the core protocol. The Starknet ecosystem has attracted over 1,000 active developers and maintains an active GitHub repository with frequent contributions.
Token Distribution
The initial token distribution allocates: 50.1% to community and ecosystem initiatives, 17% to core contributors with 4-year vesting, 9% to the Starknet Foundation, 8.9% to future core contributors, and 15% to early supporters with vesting schedules. This distribution model shows reasonable alignment with long-term project success.
Utility Assessment
The token demonstrates clear utility through its role in governance, fee payment, and network security. These use cases are legitimate and align with halal principles as they involve real value exchange and asset ownership.
Crypto Impact
To assign a comfort level investing in Starknet from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Starknet.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.