The firm that created the Ethereum scaling network Starknet, StarkWare, revealed on Thursday that it will update the STRK token distribution schedule for investors and contributors in response to criticism from the cryptocurrencycurrency community.
The corporation will not be undertaking a large scheduled STRK unlock this April; instead, its allocations will be spread out across several years. According to CoinGecko, the price of STRK surged after the announcement, going from $1.86 to $2.03 in a matter of minutes before settling to slightly under $2 at the time of writing. The token has increased by 9% today.
After this Tuesday’s token launch, StarkWare had originally intended to unlock 1.3 billion STRK tokens for investors and early contributors on April 15. The short cliff has generated debate among Starknet users and the larger cryptocurrencycurrency community because to concerns that the price of the token may be impacted by such a large unlock (about 13% of the total STRK
StarkWare will unlock 64 million tokens every month for the first year beginning on April 15 and 127 million tokens per month for the next 24 months under the updated plan.
This evenly distributes the token unlocks: 580 million tokens will become available to contributors and investors by the end of 2024, followed by 1.4 billion STRK in 2025 and 1.5 billion STRK in 2026.
The CEO and co-founder of StarkWare, Eli Ben-Sasson, stated in a tweet that his company “[believes] trust is earned with actions, not just words,” “proposed a more gradual release schedule,” “listened to concerns re: long-term alignment of StarkWare w/ Starknet ecosystem,” and “[thanks] investors for their support on this.”
Previous to last week’s disclosure of the plans for the token launch, Ben-Sasson had dismissed complaints regarding the token unlock timeframe.
“One area where we might not be typical is the unlocking for the team and early investors,” Ben-Sasson said to Decrypt last week. “However, our perspectives and methods of building are slightly different.”
This Tuesday saw the token launch for Starknet with a big airdrop to around 1.3 million wallets that qualified, but the price dropped precipitously after that. Although it has recovered from a low of $1.70 on Wednesday, it is presently down 55% from its peak price of $4.41 reached on Tuesday.
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