This is one project that I have been looking quite intently for some time – Star Network. You can mint Star Tokens daily using their mobile application. The number of users seem to be growing quite fast – currently it has about 600k active members. Not too bad considering that the project has been around for like a little more than a month only. Very impressive growth rate. Of course whether that is really true or not, I have no idea though. The main reason why I believe that this project will be successful is due to the fact that they have a very comprehensive whitepaper. Gives me some confidence that someone put a lot of effort and thought into this project. And their whitepaper proves that. So I am here to breakdown the whitepaper and give you guys the summary.
Check out their whitepaper here. I will only list down the important parts of the whitepaper. Some of the information in the whitepaper are pretty general and I won’t want to bore you with the details.
The first few paragraphs talk about why we need to get into the action first. Basically it is trying to convince their members to join and start getting the Star Tokens before everyone else. I mean it makes perfect sense as the early adopters will usually benefit the most. It also tries to persuade readers the importance of having an alternative to traditional banking which is decentralized finance (defi). Again I have nothing against what was said. It is always good to have alternatives, especially when it comes to money and “banking”. It is rather ironic that governments are the ones who actually control our money and even in some cases, we will need to get permission from the government or financial institutions to use our own money. Indeed strange.
The whitepaper then goes on to inform us on the issues with the current cryptocurrencies and how they plan to solve those issues. Well this is a maybe. They are using 1st generation cryptocurrencies like Bitcoin as comparison, which isn’t really that fair if you ask me. There are plenty of other newer cryptocurrencies out there and although these have problems of their own, they already have or planned to have solved the issues with 1st gen cryptocurrencies.
Next the whitepaper tries to explain to users what exactly is Star Network. Well for those who still don’t know, they are a defi platform and the idea is to allow borrowing, lending, payments, exchanges and others without a need for a centralized entity. Basically a peer to peer platform with banking services baked in. And in order to achieve that, their app allows users to earn Star Tokens daily and to incentivize more users to join the network – those who invite others will earn a percentage of their rewards. This is very typical when it comes to such mobile crypto mining platforms. They do need the numbers in order to be successful. However do note that users will need to complete KYC in order to use their services. I have found that needing to complete KYC seems compulsory these days. This is good, as it will prevent users to create bots to mint fraudulently.
Anyway, all you have to do is to download their mobile app and click a few buttons once every day to get your Star Tokens. They plan to have mint rate halvings once the number of users reached certain milestones. Initially the reward rate was 1.6 Star Tokens per hour. After the first halving, it is now only 0.8 Star Tokens per hour. The next halving will occur when the number of users reached 2 million. Users (or so called Explorers) can also increase their minting rate by inviting others to join the network and mint the rewards. The more invitees (or Boosters) that use their referral code, the higher the minting rate will be. The Star Token supply will cease to increase when they reach 100 million registered users. At the moment, we will not know what would be the exact supply. Note that 25% of all Star Tokens minted will be given to the developers.
They are also introducing yet another token called Libra. This is for users to complete KYC and to unlock their Star Tokens. It seemed that Libra tokens are randomly issued to users and those with a higher amount of Star Tokens will have higher chance of getting the Libra token. Plus they have a 7-day expiry period! Apparently you can also purchase Libra from other users as well. So when you mint a certain amount of Star Tokens, you cannot withdraw them without first having the Libra token. And once you have completed KYC and use the Libra token to withdraw your Star Tokens, they will be termed as Realized Balance and you can use them in your wallet. Their wallet is expected to be ready by mid-2021. I am guessing the main point of this Libra token is to ensure that when Star Token is officially launched and can be traded in exchanges, we will not see a huge dumping of the tokens. This is a very common issue with such projects. It seems that they have a burnt feature whereby 0.3% of each transaction will be burnt. This is very likely done to increase the scarcity and value of the Star Tokens.
Their expected full launch should be somewhere in December 2022. That means users should have about a year to mint for the Star Tokens. Even after the launch, they will keep on adding more defi features into their ecosystem. And it seems that they are planning to develop their own blockchain. So if you are interested, you can read their whitepaper on that. However at the moment it seems to be a little thin on the details. I am guessing that such a feature will still be some time away. Hopefully they will give us more details as it gets closer to launch.
If you are interested in getting “into the action” and not to “miss out”, you can use my referral code [blong1234] to join the Star Network. Take care!