StarkWare Revises STRK Token Unlock Plan After Community Backlash
StarkWare, the company behind layer 2 Ethereum scaler Starknet, has announced revisions to the unlock schedule for STRK tokens, affecting early contributors and investors.
The decision comes after initial plans to unlock a significant portion of the tokens in April faced backlash from the cryptocurrency community. Eli Ben-Sasson, co-founder and CEO of StarkWare, said in an
The revised schedule will now see a more gradual token release, with 64 million (0.64%) tokens unlocked on April 15, 2024, and continuing monthly at the same rate until March 15, 2025. After this period, the rate increases to 1.27. Monthly % for 24 months (ending March 15, 2027)
This change reduces the number of tokens that will be unlocked by the end of 2024 from the originally planned 2 billion to 580 million. The STRK token, which is traded on various cryptocurrency exchanges, experienced a price increase following the announcement, indicating a positive market reaction to the revised schedule.
According to CoinGecko data, STRK was trading at US$1.92 at 11:40 AM ET, up 4.5% in 24 hours.
The initial unlock plan involves releasing 1.3 billion STRK tokens, equivalent to about 13% of the total supply, raising concerns about the potential price impact. Starknet users and the wider cryptocurrency community have expressed concerns that such a large-scale unlock could lead to a decline in the value of the token.
Starknet has begun airdropping tokens to nearly 1.3 million eligible wallets. However, the token price immediately took a sharp decline, falling 55% from its average peak price of $4.41 on launch day, according to data from CoinGecko.
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