Coinspeaker Starknet’s STRK Token Jumps 10% after Developer Extends Unlock Period Following Community Criticism
The value of the Starknet (STRK) token rose by 10% on Thursday following news that developer firm StarkWare would cut the number of tokens set to unlock in April. StarkWare decided to extend the unlock schedule after the developer firm faced serious criticism from members of its community.
StarkWare, in an official X post, made the announcement to cut allocated tokens, stating that it values its community and wants to earn trust by developing great tech that recognizes blockchain values. The post stated:
“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.”
New Schedule to Unlock STRK Tokens
Under the revised schedule, 64 million tokens (0.64% of the total 10 billion) will unlock on April 15. This is a 95% reduction from the originally planned 13.4%, 1.34 billion tokens. According to StarkWare, the unlock will gradually continue at a pace of 64 million tokens until March 15 next year. After that, the pace will increase to 1.27% (127 million tokens) every month until March 15, 2027.
“Under the new unlock plan, 580 million tokens held by early contributors and investors will be unlocked by the end of 2024, as opposed to 2 billion of those tokens under the previous schedule. 1.4 billion additional tokens will be gradually unlocked by the end of 2025, another 1.5 billion will be unlocked by the end of 2026, and 380 million will be unlocked by March 15, 2027,” StarkWare added in the post.
Earlier this week, Starknet had begun distributing 728 million STRK tokens via an airdrop to about 1.3 million addresses. Considered the largest airdrop of the year, the receiving addresses were selected according to criteria related to participation in the STRK community. The token’s pre-launch perpetual futures began trading at $1.80 on the decentralized futures platform Aevo. Shortly after release, it rose to $5 on KuCoin.
STRK Plunged 70%
Unfortunately, TradingView data shows that STRK’s price jumped as high as $7.6 yesterday but fell more than 70% to $1.9. According to CoinMarketCap data, STRK is trading at $2.08 after losing more than 4% in the last hour. While it lost nearly 12% in 7 days, STRK gained 11.5% over the last 24 hours.
Starknet’s decision to allow early developers and core contributors access tokens shortly after the airdrop ruffled many feathers. While some thought it was too quick, others criticized the particular schedule and the amount of tokens this category of community members would unlock. Essentially, developers and early contributors would have accessed nearly double the initial airdrop volume.
StarkWare decided to fast-track the unlock because of the token generation event held in November 2022. The initial plan was to lock the tokens for one year, allowing access last November. However, StarkWare decided on the delay because the tokens were not ready. Since the initial token generation event, the token was designated for use in governance. However, holders could not move or trade them.
next
Starknet’s STRK Token Jumps 10% after Developer Extends Unlock Period Following Community Criticism
