StarkWare’s New Strategy Amid Starknet’s Revenue Shake-Up

StarkWare, an Israeli fintech firm known for its efforts in scaling Ethereum, is undergoing a significant reorganization following a dramatic downturn in revenue from its Starknet blockchain.

What Led to Starknet’s Revenue Plunge?

Just three years ago, Starknet was thriving with monthly revenues reaching $6 million by the close of 2023. Fast forward to early April 2026, and this figure starkly decreased to a mere $48,000. This decline coincided with the implementation of Ethereum’s EIP-4844 upgrade in March 2024, leading to reduced fees for layer 2 solutions, impacting income across the industry and, notably, Starknet’s earnings.

Despite the revenue drop, the total value locked (TVL) on Starknet has persisted above the $200 million mark, prompting a strategic shift from infrastructure-exclusive services to developing revenue-generating products.

In an internal announcement, CEO Eli Ben-Sasson revealed restructuring plans, dividing the company into two autonomous units, each tasked with crafting economically viable products while leveraging the company’s tech-savvy edge for greater application.

How Will StarkWare’s New Divisions Operate?

StarkWare’s restructure includes appointing Avihu Levy to head a new applications division aiming to boost revenue. Levy’s responsibility includes introducing the Quantum Safe Bitcoin (QSB) initiative, designed to protect Bitcoin from potential quantum computing threats.

QSB differentiates itself by using hash-based proofs, eschewing traditional signature protocols, which provides a layer of quantum resistance without altering Bitcoin’s existing framework. However, this method comes at a cost, with transaction expenses ranging significantly higher than current Bitcoin transaction averages.

This initiative offers an alternative to the BIP-360 protocol intended for Bitcoin’s quantum security, a project accepted for Bitcoin’s development yet expected to take considerable time before any realization.

Though not yet explicitly outlining involvement in Bitcoin or quantum security, Ben-Sasson emphasizes a focus on projects that drive internal profitability, diminishing dependency on external solutions or collaborations.

Eli Ben-Sasson mentioned that additional details on StarkWare’s strategic redirection are scheduled for release next week.

When asked for further insights, a StarkWare spokesperson opted not to provide additional details on their strategic overhaul, which continues to evolve in the backdrop of a swiftly changing industry landscape.