After being heavily criticized by the community, Starkware, the developer of the Ethereum Layer 2 scaling solution Starknet, announced today that it has modified the token unlocking schedule. The originally planned 13% of STRK tokens, which accounted for more than 13% of the total token supply, will now be unlocked and distributed to early contributors and investors in April, reducing to only 0.64%. It is unclear whether this news has stimulated the rise of STRK after a period of decline.
Starknet, the highly anticipated Ethereum Layer 2 scaling solution, opened the STRK token airdrop on the 20th and listed it on multiple mainstream exchanges. However, the launch of Starknet has sparked controversy. In addition to community complaints about unfair token distribution, the token unlocking schedule of Starknet has also been heavily criticized.
According to the token unlocking schedule, on April 15th, more than 1.3 billion STRK tokens (13.1% of the total token supply) will be unlocked and distributed to early contributors and investors, which can be transferred and sold. This has raised concerns in the community that these tokens will be dumped after unlocking, leading to a significant drop in token price.
However, Starkware, the developer of Starknet, announced today that after listening to feedback from the ecosystem and partners, it has decided to adjust the locking plan for StarkWare early contributors and investors to make the token unlocking more gradual. Starkware values the community and hopes to win trust by building a great technology that embodies blockchain value and stands the test of time.
According to the official statement from Starkware, the modified unlocking schedule is as follows: out of the initially minted 10 billion tokens, only 0.64% (64 million tokens) will be unlocked on April 15th, instead of the originally planned 13.4% (1.34 billion tokens). The gradual unlocking will continue at a rate of 0.64% (64 million tokens) per month until March 15th, 2025. After that, for the next 24 months, the monthly unlocking will be increased to 1.27% (127 million tokens) until March 15th, 2027.
According to the new unlocking plan, by the end of 2024, 580 million tokens held by early contributors and investors will be unlocked, instead of the previously planned 2 billion tokens. By the end of 2025, an additional 1.4 billion tokens will be gradually unlocked, and by the end of 2026, another 1.5 billion tokens will be unlocked. Finally, on March 15th, 2027, 380 million tokens will be unlocked.
Perhaps inspired by the announcement of StarkWare’s adjustment to the locking plan for early contributors and investors, the market expects a significant decrease in token dumping in April. The price of STRK, which has been falling since its launch on the 20th and reached a low of $1.67 on the 21st, has started to recover and returned to the $2 mark.
In the past 24 hours, STRK has surged more than 20%, reaching a high of $2.178, and as of the time of writing, it is trading at $2.048, with a 8.5% increase in the past 24 hours.
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Chart of STRK. Source: Tradingview
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