StarkWare Restructures and Cuts Jobs as Starknet Revenue Plunges

StarkWare develops Starknet, an Ethereum Layer 2 network built with STARK zero-knowledge proof technology, and relies heavily on transaction fees for revenue. As Ethereum upgrades drove down Layer 2 fees, Starknet’s monthly revenue collapsed from a peak of nearly $6 million in late 2023, forcing the company to reassess a business model focused solely on scaling infrastructure.

On April 13, 2026, StarkWare announced a restructuring into two business units, Starknet and Applications, and said it would cut some jobs without disclosing the number affected. Starknet generated about $48,000 in revenue in the first half of April 2026, down more than 99% from its peak. Avihu Levy will lead Applications, which will develop proprietary products designed to be profitable and difficult to replicate.