Starknet batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (supply-side fees).

Starknet is an L2 smart contract platform for decentralized applications on Ethereum. StarkNet was founded by StarkWare and launched in 2021.

StarkWare team & investors own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). StarkWare's investors include Sequoia Capital, Founders Fund, Pantera Capital, etc.