The Starknet team has changed the number of tokens it will distribute to the community. As a result of the news, the price of STRK immediately increased by 15%, StarkWare, the startup behind the Starknet L2 network, will revise its token unlock schedule for early adopters. This decision was caused by criticism from the community.
Starknet (STRK) Unlock Schedule Changed
StarkWare representatives stated that they will now unlock STRK in smaller portions. Thus, until March 15 next year, unlocking will take place monthly at a rate of 0.64% of the total supply of 10 billion tokens, or 64 million tokens ($125 million). Then over two years – until March 15, 2027 – it will increase to 1.27% (127 million for an amount of $250 million).
It was originally planned that in April, just two months after the launch of the token, the project would unlock 13% of the total supply, or 1.3 billion STRK. Not all users liked this idea.
Community Criticism
Typically, tokens are locked for a longer period. It often takes a year between launch and distribution. This approach prevents high volatility and ensures the safety of the project.
The Starknet team explained the early unlocks by saying that STRK tokens were generated back in 2022. Since then they have been used for control. The asset could not be sold, exchanged or moved.
The developers then decided that they would officially launch STRK in November 2023. However, the event had to be postponed several months ahead.
“The Starknet unlock schedule looks more like how developers would pay themselves to launch a DeFi shitcoin honestly,” one user wrote on X (formerly Twitter).
Another user called the project’s tokenomics far-fetched and fraudulent. According to him, the US Securities and Exchange Commission (SEC) should take a closer look at such decisions, and “not sue random crypto exchanges.”
LOL What the fuck is this graph????
Another blatant case of teams making tokenomics as contrived and scammy as possible
This is the kind of thing the SEC needs to look at, not suing random exchanges pic.twitter.com/01I7RwKhGv
— Wazz (@WazzCrypto) February 14, 2024
The Starknet team’s airdrop also caused mixed reactions. Some criticism arose about the token distribution, and the process was unfair.
STRK Price Analysis
According to coinmarketcap, at the time of writing, STRK is trading at $1.927. Over the past 24 hours, the price has dipped down by 5.4%.
Trading of the Starknet project token on major exchanges, including Coinbase, Binance and KuCoin, began on February 20. Then STRK debuted at $7, but quickly dropped to $1.9 STRK’s capitalization is currently $1.4 billion, and its daily trading volume is $722 million.
