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Anonymous Token Distribution with StarDrop and StarkNet

Anonymous Token Distribution with StarDrop and StarkNet

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by Elena Ryabokon

21 hours ago


StarDrop is an experimental project operating on the StarkNet platform. It enables anonymous distribution of rewards by utilizing zk-technologies and blind signatures (blind-signature/VOPRF), ensuring both security and privacy in the process of token issuance to participants.

Contents

1. Overview of the StarDrop Project

StarDrop is an experimental project introduced by Kobi Gurkan in July 2021. Unlike traditional airdrops that often expose the connection between sender and recipient, StarDrop utilizes blind signatures and zk-rollups via StarkNet to ensure recipients can claim tokens anonymously. The issuer remains unaware of who received the reward and when the claim occurred.

Initially, StarDrop was not meant for large-scale industrial use. Its goal is to demonstrate the possibility of secure and private token distribution in a blockchain environment. In systems where pseudonymity can lead to deanonymization, StarDrop aims to mitigate data leakage and linkage risks.

This initiative is particularly relevant in sensitive Web3 scenarios—such as political or humanitarian efforts—where confidentiality is paramount. StarDrop opens the door to future decentralized applications built on privacy-centric distribution protocols.

2. Protocol and Platform Concept

The StarDrop protocol is based on the blind signature technique, borrowing ideas from Privacy Pass. A user generates a random token t and blinds it to get T, which is then sent to the issuer. The issuer signs T without knowing the original value. Once the signing phase is complete and the issuer discloses the public key, the user unblinds the signature to obtain R = sH(t), which is used to redeem the reward.

Phase Description
Token Generation User creates a random token and blinds it.
Issuer Signing Issuer signs the blinded token without knowing its original form.
Key Disclosure Issuer reveals the signing key after the signing window closes.
Unblinding User unblinds the signature and prepares the token for redemption.
Redemption Smart contract validates the signature and issues the reward.

This multi-phase process eliminates the risk of signature forgery or replay attacks. StarkNet ensures scalable and cost-efficient verification through zk-rollups, making StarDrop a robust privacy-preserving airdrop prototype.

3. Technological Architecture

StarDrop’s architecture is designed for anonymity, efficiency, and cryptographic robustness. It leverages smart contracts on StarkNet and integrates several advanced components to ensure integrity and privacy.

  • Blind Signature / VOPRF System: Issuer signs data without seeing the original token.
  • Multi-step Process: Commitment → Reveal → Redeem stages ensure security and transparency.
  • zk-Rollup (StarkNet): Ensures low-cost, scalable verification of operations.
  • Smart Contracts: Validate token signatures and prevent double claims.
  • No Metadata Leakage: Even after redemption, user identity is not linked to the token.

This architecture enables fully anonymous reward distribution without compromising on-chain verifiability. It provides a solid foundation for privacy-first protocols in Web3, especially in trust-sensitive environments.

4. Use Case Scenarios

StarDrop is ideally suited for scenarios where preserving participant anonymity during reward distribution is essential. A typical example is the issuance of tokens to active testnet users, where recipient identification is unnecessary. This model is also effective in humanitarian programs aimed at helping individuals whose identities must remain confidential.

Decentralized Autonomous Organizations (DAOs) can leverage the protocol to anonymously reward contributors without disclosing their wallet addresses or levels of participation. In academic research, bounty campaigns, or user engagement initiatives, StarDrop enables organizers to maintain participant privacy without compromising the transparency or security of transactions.

While the project remains experimental and research-focused, it opens new frontiers for implementing privacy-preserving distribution mechanisms in the Web3 ecosystem.

5. Key Advantages of StarDrop

StarDrop introduces a novel mix of privacy, technical efficiency, and adaptability. The protocol addresses the inherent traceability issues in blockchain airdrops and ensures that participants’ identities remain private at all times.

  • True Anonymity: Users redeem tokens without exposing their identities.
  • Privacy by Design: Issuers cannot link tokens to recipients.
  • Scalable Architecture: StarkNet integration allows efficient processing with minimal gas costs.
  • Double-Claim Protection: Contracts automatically block multiple redemptions from the same token.
  • Flexible Implementation: Applicable in multiple domains such as governance rewards, airdrops, and research incentives.

These features make StarDrop a pioneering example of how blockchain rewards can be both verifiable and private, pushing forward the boundaries of decentralized design.

6. Conclusion

StarDrop is an experimental protocol that combines blind signatures with zk-rollups on StarkNet to enable secure and private token distribution. It showcases how the connection between user identity and reward claims can be severed, ensuring anonymity, scalability, and protection against fraud.

Although the project is not intended for large-scale commercial deployment, it serves as a technological foundation for future applications where privacy is critical—such as testnets, DAO rewards, humanitarian distributions, or anonymous voting. The use of technologies like VOPRF and zero-knowledge proofs positions StarDrop as a valuable example of practical privacy-preserving mechanisms in Web3 and inspires new approaches to user data protection.

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