StarkWare Adjusts Token Release Structure to Address Community Concerns
StarkWare, a blockchain company known for developing the layer 2 scalability protocol Starknet, has made changes to its token release structure for STRK. This decision comes in response to concerns raised by the community regarding the initial plan, which could have allowed network investors to sell their holdings to retail Starknet users. To address these concerns, StarkWare has decided to implement a more gradual token release for its early contributors and investors.
New Token Release Structure
Initially, StarkWare had planned to unlock 1.3 billion STRK coins on April 15, shortly after the token launch. However, this raised controversy as it represented approximately 13% of the total STRK supply and could potentially impact the token’s price. In response to feedback from the community, StarkWare announced that it would review its lockup schedule and make adjustments.
Important update:
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 tech that…
— StarkWare (@StarkWareLtd) February 22, 2024
According to the revised schedule, only 0.64% of the initially minted 10 billion tokens will be unlocked on April 15, instead of the originally planned 13.4% (1.34 billion tokens). The token unlock process will then proceed gradually, with a monthly unlocking rate of 0.64% (equivalent to 64 million tokens) until March 15, 2025. After this date, the monthly unlock rate will increase to 1.27% (127 million tokens) for the next 24 months until March 15, 2027.
Under the new release plan, a total of 580 million tokens held by early contributors and investors will be unlocked by the end of 2024. This is a significant reduction compared to the previous schedule, which would have unlocked 2 billion tokens within the same timeframe.
Positive Impact on STRK Token Price
The original token unlock schedule caused controversy and led to a drop in the price of STRK. In just two days after its launch, the value of STRK experienced a significant decline, falling by nearly 60% from its peak of $4.41 on February 20 to below $1.90.
However, following StarkWare’s announcement of the adjusted token release structure, STRK has seen a surge in price. According to CoinGecko data, STRK is now trading at over $2, representing a 6% increase in the past day.
Furthermore, eligible individuals have claimed over 440 million STRK, which accounts for 95% of the total currently available for distribution, according to Voyager data. Additionally, DefiLlama reports that Starknet’s total value locked has reached nine figures for the first time, doubling in the past 24 hours to reach $127.72 million.
Hot Take: StarkWare Responds to Community Feedback
StarkWare’s decision to adjust the token release structure demonstrates its responsiveness to community concerns and commitment to building trust. By implementing a more gradual release plan, StarkWare aims to prevent a significant impact on STRK’s price and ensure a fair distribution of tokens.
This move has already had a positive effect, with the STRK token price experiencing a surge following the announcement. The community’s feedback and engagement have played a crucial role in shaping StarkWare’s decision, highlighting the importance of open dialogue and collaboration in the crypto space.
As StarkWare continues to develop its layer 2 scalability protocol Starknet, it remains dedicated to creating innovative technology that meets the needs of its community. By addressing concerns and making adjustments based on feedback, StarkWare is building trust and establishing itself as a reliable player in the crypto industry.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.