Starknet Reaches Stage 1 Decentralization, Leads ZK-Rollup Networks with $629M Locked

Coin WorldFriday, May 16, 2025 2:14 am ET
1min read

Ethereum layer-2 scaling platform Starknet has achieved a significant milestone in its decentralization journey, aligning with a framework outlined by Ethereum co-founder Vitalik Buterin. This achievement positions Starknet as the largest zero-knowledge rollup-based network by total value locked, surpassing competitors in the layer-2 scaling solutions landscape.

Starknet announced that it has reached “Stage 1” decentralization, a benchmark set by Buterin in 2022. This stage signifies that the network operates with minimal oversight, often referred to as “training wheels.” The platform has implemented various changes to meet this milestone, including the establishment of a security council and mechanisms to avoid censorship. Despite the presence of a security council, Starknet has deployed a fully functional validity proof system governed by smart contracts, ensuring a higher level of autonomy and security.

With a total value locked of $629 million, Starknet now leads among ZK-rollup networks, narrowly ahead of ZKsync’s $610 million. This positions Starknet as the fifth-largest layer-2 network by value locked, with the top four being Optimistic rollup-based networks that have also reached Stage 1 decentralization using fraud proofs. Fraud proofs operate under the assumption that transactions are invalid until proven valid, whereas validity proofs, as used by Starknet, assume transactions are valid only if proven valid with cryptographic evidence.

Eli Ben-Sasson, co-founder and CEO of StarkWare, the developer behind Starknet, expressed the platform’s ambition to progress to “Stage 2” decentralization. This stage represents full autonomy and community governance, a goal that only a few small layer-2 scaling platforms have achieved. Ben-Sasson also highlighted Starknet’s parallel efforts to advance its work on Bitcoin, indicating a broader vision for the platform’s future.

Buterin’s framework for Ethereum scaling rollup projects, introduced in 2022, outlines three stages of development, often referred to as “training wheels.” These stages guide rollup projects through various phases of decentralization and security enhancement. Starknet’s achievement marks a significant step forward in the Ethereum ecosystem, demonstrating the platform’s commitment to decentralization and security.

In the broader layer-2 ecosystem, the Coinbase layer-2 network Base leads with a total value locked of $14.7 billion, commanding a 33% market share. In comparison, Starknet holds a 1.4% market share. The total value secured onchain in the layer-2 ecosystem stands at $44.2 billion, reflecting recent gains in the value of Ether (ETH) despite an overall 20% decrease this year.