Starkware is restructuring and cutting staff after Starknet revenue fell more than 99% from its peak. The company is shifting focus toward building its own revenue-generating products.
Key Takeaways:
Starkware revenue fell from close to $6 million in 2023 to $48 in April 2026, forcing layoffs and restructuring. EIP-4844 cut Starknet fees, compressing income despite $242 million TVL, reshaping L2 economics. CEO, Eli Ben-Sasson plans pivot to apps unit in 2026, aiming to build sustainable revenue streams. Starknet Revenue Declines as Starkware Shifts StrategyThe company said it will split into two independent units as part of a broader shift away from a pure scaling focus toward developing its own revenue-generating products. The changes were outlined by Chief Executive Eli Ben-Sasson during a company-wide address.
Despite the revenue drop, Starknet continues to hold nearly $242 million in total value locked, suggesting that user activity has not disappeared but is generating less income.
Ben-Sasson said the company now needs to convert its technical strengths into meaningful usage and revenue. He indicated a shift toward building proprietary applications, rather than relying solely on infrastructure that depends on external ecosystems.
Stakeware to Launch New Applications UnitAs part of the restructuring, Starkware will establish a new applications unit focused on developing high-impact products. The division will be led by researcher Avihu Levy, who was recently promoted.
Ben-Sasson, who has worked in the field for over a decade, described the current environment as a period of weak leadership across the industry, adding to the challenges facing companies. Further details on the company’s new direction are expected in the coming weeks.
