Some great news for users of Star Network. They have implemented the Libra tokens to their platform. This means the users (or explorers) can draw Libra and if they are successful, they can start doing KYC and unlocking their Star tokens balance. And the cool thing about this is that they did it on time without that much hiccup. This surely gives me some more confidence on the project.
So if you don’t know what the hell is Star Network, let me give you a brief overview of this project. It is a Defi project where members can trade and swap tokens, stake their tokens for rewards and do borrowing on their assets on the platform. The native token is the Star Token. You can also mine for their Star Token on their app, which functions as an social network app as well. So you come on daily to “mine” or mint for rewards which can be converted to the Star Token. However you will need to complete KYC as per usual nowadays in order to withdraw the Star Tokens. There is a catch here though. In order for you to complete KYC, you will need the Libra token. And this Libra token can only be drawn from a lucky draw system – it is random but if you hold more Star Tokens in your app, you will have a higher chance of drawing it. Honestly I don’t know. I certainly understand why they implement this but on the other hand, I think the randomness is a major issue. We could potentially see someone who don’t contribute much to their network drawing the Libra token a number of times, while someone with a bigger balance not drawing any and getting frustrated. Of course that is just me.
So other than allowing a KYC slot for their members, the Libra tokens can also be used to unlock the balance. Only after unlocking the balance, users can then withdraw the tokens. Of course withdrawing the tokens will only be available at a later date. But you do get to unlock the balance you earned plus those earned by those you referred to (those who have completed KYC as well). Again there is a catch – Star Network seems to be full of such things – the Libra token has an expiry of 7 days. So you will need to use the token or it vanishes. Of course you can trade or give it to someone else in your team. Well, I guess it makes the network more exciting and gives users a chance to interact with others. It is called Social Defi for a reason.
The wallet on the app is now active and users can send and receive Star tokens. But do note that the tokens need to be unlocked before you can do anything. So that Libra token is still needed in order for users to do any sort of transaction. When they first announced the Libra tokens, I didn’t know how important this token will be. But after some thought, I think this token is probably the one that enables everything. Kind of disappointing that the Libra tokens only last 7 days. Makes everything kind of rushed for users to complete.
Anyway Star Network has reached 900 thousand users. Going for a million soon. Now that is real growth we are seeing here. I think this project does seem to be heading in the right direction. And if they continue to grow, think they might be able to compete with Hi Dollars in the Defi space. Defi is still the bomb if you ask me. And lots of space to grow further.
I am not a financial advisor. And for god’s sake, do not pay for anything on an app unless you are sure of their success. Please take care.