If the Tokenomics of Starknet are effective, it will undoubtedly promote the issuance of tokens for ZK projects such as zkSync, Scroll, and Linea.
(Background:
Starknet Airdrop Storm: Community Questions 70% Wallet Allocation, Institutions Unlock $STRK Rapidly.. CEO Defends: We Are Different.
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(Background:
Starknet Airdrop is Coming: Which Ecology Projects Will Receive the Hidden Treasure in the Next Round?
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In the past two days, Starknet has successfully carried out a super airdrop campaign targeting a total of 1.3 million addresses and over 700 million STRK tokens. It has taken care of every participant involved in the ecosystem, which is quite impressive!
So, how should we view the subsequent impact of this Starknet airdrop feast? Let me share my thoughts:
Subsequent Impact of Starknet Airdrop Feast
1) The standards, scale, and coverage of Starknet’s airdrop have always been a topic of speculation and rumors. Many even thought it would be a collective “disaster.” Against this backdrop, the sudden announcement that over 1.3 million addresses and 700 million STRK tokens are eligible for the airdrop has undoubtedly surprised many people.
To be honest, as a popular project that has faced criticism, it has been challenging for Starknet to design the airdrop standards. It requires a delicate balance of interests and avoids the airdrop from overshadowing its motivating effect. Therefore, it is difficult to achieve absolute satisfaction. In the end, Starknet chose to show gratitude on a larger scale to early contributors of ECMP, GitHub open-source developers, and Starknet users.
This is likely also the ultimate choice for other prominent projects like zkSync and LayerZero. When the brand influence reaches a certain level, a sunshine-filled airdrop action is the wisest choice.
The difference lies in which “trolls” will be filtered out based on what criteria and which direction will become the project’s preferred object. For example, Starknet clearly favors developers and early ECMP contributors. The business of “trolling” at best increases risks and loses the cost-effectiveness of investment. It will continue to spiral downward.
2) Previously, I mentioned that the Starknet airdrop is a “redemption action.” The reason is that ZK-based Layer2 projects have long remained in the stage of technical advantages. The comprehensive data indicators of developer resources, ecosystem projects, market TVL, user base, and user experience have not met expectations.
In such a situation, the introduction of tokenomics as a killer feature is more about further constructing and strengthening the ecosystem market. Obviously, both Starknet and zkSync are concerned about this.
Especially, the total locked value (TVL) of Layer2 has exceeded 25.5 billion, while the top 5 Layer2 projects in terms of brand reputation account for less than 0.2 billion. How can such data instill confidence in secondary market investors?
Subsidizing developers and users through token issuance can quickly make up for this shortcoming. If you don’t believe it, tokenomics has such great power. Just look at Blast, which has already accumulated over 1.8 billion USD in TVL without any technology implementation.
Personally, I believe that tokenomics will bring sustained momentum to the ZK ecosystem, especially when STRK is used as a gas fee subsidy for project development and user interaction. There is still great potential.
3) The significance of the Cancun upgrade to ZK-Rollup is much greater than that to OP-Rollup. If the Cancun upgrade is like adding the finishing touch to OP-Rollup, then it is like providing a lifeline to ZK-Rollup.
The reasons for this have been analyzed before. With the same blob block capacity, ZK-based Layer2 can increase the upper limit of Layer2 TPS and reduce the average gas cost. Coupled with the upcoming potential gas subsidy war, theoretically, more developers and users will flock to the ZK ecosystem for building. Under normal circumstances, the Cancun upgrade will be a turning point for the ZK ecosystem to surpass and counterattack OP on all fronts.
By launching Tokenomics before the Cancun upgrade, Starknet has undoubtedly expressed its determination to fight against all odds after the upgrade. If the Tokenomics of Starknet are effective, it will undoubtedly promote the issuance of tokens for projects like zkSync, Scroll, and Linea.
Moreover, the potential of ZK technology ultimately relies on “applications” to drive it. The market needs to see the emergence of several explosive applications to further prosper the Starknet market ecosystem.
4) The current competition landscape of Layer2 has become complex and intense. Previously, Layer projects such as Arbitrum, Starknet, and zkSync, which have first-mover advantages in terms of technology and brand reputation, have shouldered significant expectations for implementation. However, the stacking strategy still follows the traditional VC narrative thinking for B2B, which is insufficiently attractive to secondary market investors.
Conclusion
At the same time, a large number of emerging challengers trying to break the Layer2 landscape have emerged. For example, Metis is attempting to overtake others with its decentralized sequencer and native token economy. Manta, ZKFair, Blast, and others are trying to counterattack and rise to the top using the power of the market, operations, and capital.
In addition, Celestia, Altlayer, Espresso, and others continue to introduce new variables to the Layer2 market with a modular mindset. The current Layer2 market can no longer be dominated by established advantages such as technical strength and capital background. In the face of successive market shocks and competition, the surviving projects will be those with balanced comprehensive strengths.
Within a year after the Cancun upgrade, market competition will become more intense. At that time, perhaps a new group of four Layer2 giants will emerge.