Ethereum Layer-2 Network Starknet Launches Airdrop for STRK Governance Token
Starknet, an Ethereum layer-2 network, has initiated an airdrop for its STRK governance token, enabling over one million crypto users to claim their stake in the network. The STRK token is now listed on major exchanges such as Binance, KuCoin, and OKX. However, its value has already dropped by 49% since its launch and is currently trading at $2.56 per token.
Over 4% of Eligible Users Have Claimed Tokens
According to TokenFlow data, approximately 51,000 users have claimed their tokens so far, which accounts for 4.8% of all eligible users. The Starkware team has allocated nearly 600 million tokens for distribution, with 69,859,276.8 tokens already claimed.
STRK Market Capitalization and Use Cases
Despite the drop in value, STRK has a market capitalization of around $2 billion, making it the 51st largest cryptocurrency. Holders of STRK can participate in Starknet governance, pay network fees, and engage in the consensus mechanism through staking. Eligible participants include Starknet users and developers, early community members, as well as stakeholders within the broader Ethereum ecosystem.
Backlash over Token Unlocking Plans
Starkware faced criticism for its plan to unlock 1.3 billion STRK tokens allocated to early investors and contributors just two months after trading commenced. This move deviated from the longer unlock periods typically observed by other projects to demonstrate commitment to ecosystem development rather than token dumping. However, Starkware’s CEO stated that their focus remains on advancing Starknet.
Network Activity and Trading Volume
Following the airdrop announcement, network activity on Starknet experienced a significant decline after a brief spike. On February 14, trading volume reached $122 million in one day but has since rebounded to $89 million according to CoinGecko.
Hot Take: Starknet Airdrop Offers Opportunity for Crypto Users
The launch of the STRK governance token airdrop by Ethereum layer-2 network Starknet presents an exciting opportunity for over one million crypto users. With its listing on major exchanges and various use cases, including participation in governance and staking, STRK has gained attention within the crypto community. However, the decision to unlock tokens early has sparked controversy and raised concerns about ecosystem development. Despite these challenges, Starknet’s network activity is showing signs of recovery, and trading volume is gradually increasing. As the airdrop progresses, it will be interesting to see how users engage with the STRK token and contribute to Starknet’s growth.
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