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Starknet Foundation launches Proof of Privacy incubator for teams building on STRK20
The eight-week program targets developers building privacy-centric DeFi applications using Starknet's new zero-knowledge token framework.
The Starknet Foundation is betting that privacy and compliance can coexist on the same blockchain. Its new incubator program, called Proof of Privacy, is now accepting applications from teams building on STRK20, the privacy framework that quietly went live in early June.
Think of it as a startup accelerator, but instead of pitching the next food delivery app, teams are competing to build the most useful privacy tools in decentralized finance. The first cohort will receive eight weeks of mentorship and milestone-based support.
What STRK20 actually does
The framework, which launched around June 9-10, introduces zero-knowledge privacy features for ERC-20 tokens. It lets users shield their balances and make private transfers without moving assets to a separate, purpose-built privacy chain.
The technical architecture relies on client-side zero-knowledge proofs built with StarkWare’s Stwo prover and Cairo programming language. These proofs conceal the sender, receiver, and amount of a transaction from public observers.
STRK20 includes optional viewing keys that allow lawful disclosure. So a user can prove the legitimacy of their transactions to an auditor without exposing those details to everyone else on the network.
“This is practical privacy in the truest sense,” said Damian Chen, VP of Growth at the Starknet Foundation.
The framework is also designed to integrate with existing wallets and DeFi applications. An open-source SDK accompanies the release, enabling developers to build private swaps and other confidential financial primitives on top of the standard.
Why an incubator, and why now
The Starknet Foundation is targeting teams that want to apply STRK20’s capabilities to real-world use cases like payroll, lending, and identity verification.
The eight-week program structure suggests the Foundation is looking for teams that already have a working concept rather than purely theoretical proposals. Milestone-based support implies that funding and resources are tied to demonstrable progress, not just promising pitch decks.