StarkWare Revises Starknet's Token Unlock Schedule Over Flooding Concerns
Summary:
StarkWare has revised Starknet's (@STRK) token unlock schedule to protect retail users from investors potentially flooding the market. Initially, the release plan stipulated a drop of over 1.3 billion STRK tokens in a short span of two months, from an overall supply of 10 billion tokens. Following user feedback, the release has been adjusted to smaller, more frequent drops over a three-year period. Under the new timeline, 580 million tokens will be unlocked by the end of 2024, as opposed to the original 2 billion.
In response to fears that the initial token release plan would provide an opportunity for investors to flood the retail users, Starknet's developer StarkWare has revised its token (@STRK) unlock schedule. The revised schedule ensures more frequent, but smaller token drops spanning three years, as opposed to one big release in just two months as initially planned. This adjustment to a more gradual unlocking timeline was made after considering users' feedback.
Under the new schedule, 64 million STRK tokens, equating to nearly $125.5 million and 0.64% of its total supply of 10 billion, will be released on April 15th. This will continue on a monthly basis until March 15th of the following year. Subsequently, the monthly release will increase to 127 million STRK for the next two years, concluding on March 15th, 2027.
Contrarily, the initial plan was to release about 13% of STRK's total supply (over 1.3 billion tokens) worth more than $2.5 billion on April 15th, just two months after the token's launch.
Additionally, under the new plan, a total of 580 million tokens presently held by initial contributors and investors will be released by 2024's end. This is significantly less than the initially planned two billion token release from the same stash.
The previous release timeline sparked controversy among Starknet users and market analysts. Critics argued that it provided a short window that would allow investors to exploit retail users by using them as an exit liquidity route.
Just two days after launch, the STRK token saw a steep fall in its price from $4.41 to under $1.90, marking a nearly 60% drop. However, the price experienced a minor spike beyond $2 following the announcement of the revised timeline. In fact, in the last 24 hours, the token's value increased by nearly 5%.
700 million STRK tokens were airdropped on Feb. 20 for an audience of over 1.3 million wallets. In the first 90 minutes of this event, 45 million STRK tokens were secured. Of the total availability, around 94%, or 436 million STRK tokens, have been claimed to date.
Starknet's total value locked has seen a tremendous increase, doubling in the last 24 hours to reach $118 million.
Published At
2/23/2024 2:44:54 AM
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