Key Takeaways:
Starkware income fell from near $6 million in 2023 to $48 in April 2026, forcing layoffs and restructuring. EIP-4844 minimize Starknet charges, compressing earnings regardless of $242 million TVL, reshaping L2 economics. CEO, Eli Ben-Sasson plans pivot to apps unit in 2026, aiming to construct sustainable income streams.
Starknet Income Declines as Starkware Shifts Technique
Starkware is chopping jobs and reorganizing its enterprise after a steep collapse in income from its Starknet community, underscoring mounting strain on blockchain infrastructure companies to generate sustainable earnings.
The corporate mentioned it should cut up into two impartial models as a part of a broader shift away from a pure scaling focus towards creating its personal revenue-generating merchandise. The modifications have been outlined by Chief Govt Eli Ben-Sasson throughout a company-wide handle.
Income from Starknet, a layer two ( L2) community constructed to scale Ethereum, has dropped sharply from a peak of practically $6 million in a single month in late 2023 to about $48,000 thus far in April 2026, in response to knowledge from Defillama. The decline displays each company-specific challenges and wider trade tendencies.
A key issue has been Ethereum’s EIP-4844 improve, launched in March 2024, which considerably lowered transaction prices on Layer 2 networks. Whereas the change improved effectivity for customers, it additionally compressed payment income throughout the sector, affecting Starknet and its rivals alike.
Regardless of the income drop, Starknet continues to carry practically $242 million in complete worth locked, suggesting that person exercise has not disappeared however is producing much less earnings.
Ben-Sasson mentioned the corporate now must convert its technical strengths into significant utilization and income. He indicated a shift towards constructing proprietary purposes, slightly than relying solely on infrastructure that depends upon exterior ecosystems.
Stakeware to Launch New Purposes Unit
As a part of the restructuring, Starkware will set up a brand new purposes unit centered on creating high-impact merchandise. The division can be led by researcher Avihu Levy, who was not too long ago promoted.
Levy’s work features a proposal generally known as Quantum Protected Bitcoin, which goals to guard bitcoin transactions from potential quantum computing threats. The strategy depends on hash-based proofs as an alternative of conventional signatures, although it carries increased computational calls for and considerably increased transaction prices.
Whereas the corporate has not confirmed whether or not this know-how will type a part of its industrial technique, Ben-Sasson mentioned future merchandise would give attention to areas the place Starkware can provide distinctive capabilities with minimal reliance on exterior blockchains or companions.
The restructuring comes at a time when many blockchain companies are reassessing their enterprise fashions. A protracted market downturn and declining transaction charges have uncovered the boundaries of relying solely on infrastructure income.
Ben-Sasson, who has labored within the subject for over a decade, described the present setting as a interval of weak management throughout the trade, including to the challenges dealing with firms. Additional particulars on the corporate’s new route are anticipated within the coming weeks.
The shift highlights a broader transition within the crypto sector, the place companies are more and more below strain to maneuver past technical innovation and exhibit clear paths to profitability.
