A quick update on Star Network – the platform has finally reached half a million members and that would mean the first halving had just occurred. So the reward rates have been halved and we now get 0.8 Star Tokens per day instead of 1.6. It took just around 40 over days for Star Network to achieve this, which if you ask me is quite impressive. Especially considering that this project does not seem to have the financial backing like Hi Dollars and lacks the media attention that Hi gets. Some of the more popular Youtubers themselves have not heard of the Star Network. I was pleasantly surprised that they managed to get so many members in such a short period of time. Good for them. And this is actually good for this segment of the crypto market as well. Though I am still not too sure whether the vast majority of the users or members do contribute anything to the project. These projects tend to get obsessed with the number of members they have.
According to their announcement, Star Network plans to enable KYC (Know Your Customer) around November of this year. And for Star Network, KYC seems to be pretty important – only members who completed KYC will be allowed to convert their Star Tokens into something usable. They have a complicated way of calling it – Nominal Balance, Convertible Balance and Realized Balance. Basically Nominal Balance is just a figure for you to show off, it does not mean that this is the amount of Star Tokens you get. Realized Balance is the actual Star Token you have and can be used. Convertible Balance is just another figure to tell you how much of the Nominal Balance you can “convert” to the Realized Balance. Realized Balance is the amount that you can use. I am guessing why they are using so many terms for their “balances” is so that their users understand that not all of their Star Tokens are usable in the end. You will understand the significance of the Convertible Balance in the next paragraph.
They also introduce another token – Libra. No, it is different from the one by Facebook. This token is for KYC and withdrawal only. Not sure why do anyone want to have a token specifically for KYC but it seems that this is so. But the importance is there – without KYC, you cannot convert your Nominal Balance to your Realized Balance. So after you have completed your KYC which should be once only, you will still need the Libra token to convert your Nominal Balance to your Realized Balance. Maybe Star Network developers are thinking that they might make some money from yet another token launch. Yes, this token is tradable, so you can buy Libra from other users. You can earn Libra tokens by ensuring that you have a higher balance and the award is random! Seems that users can stake Star Tokens as well to get Libra. As to how that works, I am not too sure. And apparently the Libra Token has a 7 days expiry lifespan. So once awarded, you will either need to sell to someone else or you can use it to withdraw the balance or do a KYC with it or it will be gone. Seems like the developers are claiming it to be an NFT. What is the point of all these?
Yes I am thinking that this might become yet another Eagle Network fiasco. Look at what happened to Eagle Network and you will understand why developers should not do all these. Not sure why they need to complicate things so much. Merely making things worse. I am in the firm believe that things should be as simple as possible. Anyway as usual, I will update you guys as news comes along. Take care!