Considerations on an experiment whose outcome we cannot yet know.
Perhaps it’s all a big misunderstanding that hasn’t been particularly well communicated.
If we’re honest, no one has figured out how to effectively build a decentralized network with tokens (including airdrops).
We have enthusiastically driven projects like Optimism with a great community, and then somewhat at the other end of the spectrum, unfortunately, there’s Starknet. It’s not just that the numbers look bad, but particularly the perception from the outside. And if we’re truly honest with ourselves, all the projects currently on Starknet are simply weak and would never have been sustainable on another chain. The only relevant one here is Moody (I believe a former central figure in the most relevant app in the entire crypto space, well, let’s hope he remains.) The push towards on-chain gaming is generally good in principle, but let’s also be honest here, in the crypto space, there isn’t a single game that a regular person would play out of intrinsic enjoyment.
One of the major criticisms is that it’s an insider/VC project.
I think Eli’s vision is genuinely good-hearted, and perhaps it will actually succeed over many years.
In short, I understand it as wanting to make an integrity web available to the world, preferably cheaply or almost for free in a decentralized manner.
So, what’s the path to achieving that?
Presumably, if one considers Starknet like a normal project, it won’t get very far.
But presumably, one would have to look at Starkware as a whole.
I think the technology of Starks is indisputably very good.
In the future, large companies wanting to use blockchain tech but not wanting to be decentralized could simply buy Stark ex Services. An example would be a blockbuster game like GTA; the company could, if necessary, edit the consensus, but then use to Stark ex and settle later in ETH. Users will demand this in the future as more and more payments are made in-game.
This means that those who want to profit financially from Starks should hope that Starkware shares will be available at some point.
But what about Starknet? One can view it as a gift to the world from Eli and the others, if it should truly become properly decentralized.
And how does one now bring this gift into the world?
I think the biggest fear was that the wrong people would pocket the benefits and that no one should speculate heavily with the project.
The underlying assumption is that the founders are tech and science-driven and rather reject this whole slightly crazy greed and money focus in the blockchain space.
Hence the thesis: special criteria that must have been internally known, so that the tokens are preferably distributed more to their own people and can thus later enter the free market through sales to decentralize. As a result, the aggressive vesting schedule also makes sense. Selling off as best as possible and thus bringing the tokens into the world. It’s better to make profits oneself than anonymous farmers on the net.
The goal could be that the token price continues to decrease towards zero. In the long-term vision, it has also been explicitly stated that there will be no cap on the number of tokens later.
Is that bad? Not necessarily. It depends on the standpoint. If one regards it like a normal crypto project, it seems bizarre and against community and user building. But if one sees it as described above, it actually can make sense.
And is a well-equipped and professional organization like Starkware really so incompetent in terms of outward presentation and dealing with users? Probably not, rather internally one probably knows where things will go in the future.
One could also ask why, for example, projects have announced challenges for users with NFT rewards, but then apart from fees for the platform, nothing else comes out of it. Here, a reframing could help: Starknet has mastered Farm the Farmer. Which is somewhat amusing and actually quite clever, just at the expense of community development, but let’s leave that aside for now.
So what does this mean? The company and its employees have their focus on Stark ex in the future.
Starknet should be given to the world but not the value of the token. This leads to a currently technically very good Ghost Chain. Especially when the subsidies stop.
Presumably, this is understood by all involved, but the experiment is still being carried out, and maybe it will succeed. Perhaps, in a few years, users will truly come and prefer this chain. What could speak against it is the technological spill-over effect, as a result of which everyone will soon have the good technology of Starknet and the blockchain space will homogenize over time. Or as Moody meant with forking.
Nonetheless, we might be experiencing a completely new approach to dealing with users and community. Only time will tell where it has led. So stay tuned