StarkWare Refines STRK Token Release Strategy in Response to Community Feedback
In Brief
StarkWare modified STRK token release format opting for gradual unlocking with the first launch releasing only 64 million tokens.
Blockchain company StarkWare, focused on developing the Ethereum Layer 2 scalability protocol Starknet (STRK), modified the token release format for its token STRK. The adjustments involve a more gradual unlocking of STRK, with the initial launch now releasing only 0.64% or 64 million tokens, down from the previously planned 13.4% or 1.34 billion tokens.
Tokens held by early contributors and investors of StarkWare are currently under a lockup arrangement. These stakeholders played a crucial role in supporting StarkWare during its research and initial development phase of Starknet.
Under the revised unlocking strategy, early contributors and investors, who initially had 2 billion tokens set to be unlocked, can now expect the unlocking of 580 million tokens by the conclusion of 2024. Furthermore, 1.4 billion tokens will be unlocked gradually by the conclusion of 2025, followed by another 1.5 billion by the end of 2026. The remaining 380 million tokens are scheduled to be unlocked by March 15, 2027.
Additionally, only 0.64% of the total 10 billion tokens, equivalent to 64 million tokens, will be unlocked on April 15. Subsequently, an additional 64 million tokens will be released every month. After March 15, 2025, the monthly token release will witness an increase of 1.27%, equivalent to 127 million tokens, and this pattern will persist for the following two years.
StarkWare Reacts to Community Concerns Amid STRK Token Distribution
The adjustment in the token release process is a response to concerns raised by community members who perceived the rapid release of a significant portion of investor tokens immediately after the official launch, especially given the context of a token generation event that occurred two years earlier as predatory.
Starknet Foundation began STRK token distribution earlier this week. Approximately 1.297 million wallets, including those of Starknet users, ecosystem contributors, developers, Ethereum builders, pledgers, and non-Web3 open-source developers, are eligible. The claiming window will remain open until June, spanning four months. The overall distribution covers more than 700 million STRK tokens, constituting 7% of the total token supply of 10 billion.
The STRK token was introduced by StarkWare in November 2022 with a no-trade status on Ethereum. As of now, the STRK token is valued at $2.13 and has experienced a 15% increase in the past 24 hours, according to data from CoinMarketCap.
StarkWare’s strategic adjustments to the STRK token release, addressing community concerns and emphasizing a gradual approach, reflect a commitment to transparency and responsiveness in the evolving landscape of its development.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
