Sunday, February 25, 2024

Starknet Unlock Token (STRK) Allocation Changed After Community Protests


StarkWare, the company behind the Starknet layer-2 scaling solution, announced changes to the allocation and unlock time of STRK tokens, (23/2/24).

This change was made by StarkWare after receiving strong criticism from the community regarding the initial token unlock plan which was considered too short with too many token allocations just two months after its release on February 20.

The community is concerned that StarkWare's plan allows investors to use Starknet retail users as exit liquidity. This could potentially cause STRK prices to collapse because there are more sales than purchases.

Time and Latest STRK Token Allocation
Initially, 1.3 billion STRK tokens, about 13% of its total supply, will be distributed to the market on April 15. With this change, on April 15 there will only be 64 million STRK tokens worth nearly US$125.5 million and 0.64% of the total supply of 10 billion unlocked.

Token unlocks will continue at 64 million STRK per month until March 15 next year. Then it will increase to 127 million STRK per month for the next two years until March 15 2027.

Important updates:

After listening to feedback from ecosystem friends and collaborators, we are changing the lockup schedule for StarkWare's early contributors and investors to make it more gradual.

We value this community and want to earn its trust by building great technology that…

— StarkWare (@StarkWareLtd) February 22, 2024
“Under the new unlock plan, 580 million tokens held by early contributors and investors will be unlocked by the end of 2024, compared to 2 billion such tokens under the previous schedule,” StarkWare said.

The STRK token price is now trading at US$2.04. This price is down more than 40% from STRK's highest price on February 20 at US$3.66.

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