The Starknet token distribution has sparked discontent among users due to the restrictive criteria set for eligibility, leading to an outcry on social channels.

This distribution aims to decentralize and govern the Starknet network, utilizing the STRK token. Diego Oliva, CEO of Starknet Foundation, emphasized the community-driven nature of the STRK token, stating that it enables a more decentralized operation of the network. The distribution will allow eligible wallets to claim STRK tokens from February 20 to June 20, with a total distribution of over 700 million STRK tokens, constituting 7% of the total supply.

However, the distribution criteria have sparked discontent among users, leading to an outcry on social channels. Many users felt excluded from the distribution, as it primarily awarded developers rather than users. This highlights the challenges and complexities of token distribution campaigns in the web3 space, where attracting power users while avoiding mercenary behavior is crucial.

Despite the backlash, Starkware hopes that its technology will drive mainstream adoption in the long run. However, the success of blockchain projects hinges on liquidity and community engagement. The criteria for user eligibility in the distribution were based on a November snapshot of transaction activity, including a minimum value transacted and transaction frequency.

Starknet has initiated various community-driven initiatives, including the Provisions program overseeing the token distribution, as well as devonomics programs and upcoming rebates and subsidies to incentivize ecosystem activity. These efforts reflect the foundation's commitment to fostering community participation and engagement within the Starknet ecosystem.

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Franklin Templeton Ethereum Spot ETF🇺🇸

Franklin Templeton, a prominent asset management firm, has filed for a spot Ethereum exchange-traded fund (ETF), joining the competitive landscape of crypto-based financial products.

This move follows the U.S. Securities and Exchange Commission's (SEC) approval of 11 spot Bitcoin ETFs in January, marking a significant milestone for the crypto industry.

A spot crypto ETF tracks the market price of the underlying digital asset, offering investors exposure to the token without direct ownership. With Franklin Templeton's registration, there are now eight ETF providers aiming to introduce spot Ether ETFs, following the rollout of spot Bitcoin products earlier this year.

Despite lagging behind competitors like BlackRock and Fidelity in assets under management, Franklin Templeton is actively promoting its spot Bitcoin ETF through marketing efforts like Google ads. This filing for a spot Ethereum ETF reflects the firm's commitment to expanding its presence in the crypto market.

The SEC's delay in similar applications by Grayscale Investments and BlackRock underscores the growing interest in diversifying crypto-based financial products beyond Bitcoin. VanEck was the first to file for a spot Ethereum ETF, with the SEC expected to make a decision by May 23. Coinbase Custody, a unit of crypto exchange Coinbase, will serve as the proposed custodian for the ETF's Ethereum holdings, demonstrating the involvement of established players in the crypto custody space.

OTC Regulatory Crackdown🇭🇰

Hong Kong's proposal for a regulatory crackdown on over-the-counter (OTC) crypto outlets marks a potential shift in the city's crypto landscape.

Regulators proposed new licensing requirements, mandating OTC shops to obtain licenses, maintain local offices, and disclose transaction data. This initiative aims to subject OTC outlets to anti-money laundering and counter-terrorist financing regulations, potentially transforming how virtual asset exchanges operate in the city.

The proposed regulations come amidst concerns about criminal activities and fraud linked to virtual asset exchanges. Notably, the recent case involving JPEX, an online exchange suspected of defrauding investors of $200 million, highlights the challenges authorities face in combating crypto-related crimes. The proposed framework also seeks to address transparency issues by requiring OTC traders to reveal their ownership structure.

Hong Kong's move reflects broader efforts across Asia to address crypto-related crime. South Korea, for instance, reported a significant increase in suspicious cryptocurrency transactions, prompting authorities to intensify vigilance among local service providers. Meanwhile, in the Philippines, the central bank plans to introduce a digital peso by 2026, opting for a blockchain-less central bank digital currency (CBDC) to facilitate transactions through its own payment and settlement system.

These developments underscore the evolving regulatory landscape and growing scrutiny surrounding cryptocurrencies and blockchain technology in the region. As governments grapple with the challenges posed by digital assets, they are adopting various approaches to regulate and leverage emerging technologies to address financial crimes and enhance transparency in the crypto space.

Lava Network “Magma” Points ☄️

Lava Network, a modular blockchain has secured $15 million in a seed funding round led by Jump Capital, Hashkey Capital, and Tribe Capital, with participation from various notable investors including executives from Celestia, Cosmos, StarkWare, and Filecoin ecosystems.

Founded in 2022, Lava aims to provide data access through remote procedure calls (RPCs) and indexing, catering to the needs of application developers in the web3 space. Unlike Celestia, which focuses on data availability, Lava focuses on data access, allowing developers to retrieve and send blockchain data seamlessly.

The Lava network, currently in testnet, recently launched an incentivized public RPC service on several blockchains, with plans to expand support to more chains soon. Node operators on Lava are rewarded based on the volume served and quality of service, optimizing performance for developers and users.

Looking ahead, Lava plans to launch its mainnet in the first half of this year, aiming to become a "permissionless everything store" for web3 services. Additionally, the project has introduced Magma, a reward points program allowing users to earn points by switching their RPC connection to Lava. The potential redemption of Magma points for Lava's own token remains undisclosed for now.

With 26 team members, including 20 blockchain engineers, Lava continues to expand its workforce as it progresses towards its mainnet launch and aims to introduce modular solutions for oracles, sequencing, and other blockchain data infrastructure in the future.

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