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News

Starkware Token Unlock Schedule Has Now Changed After Community Criticism

February 23, 2024 - Around 2 mins mins to read

Key Points:

  • Starknet’s STRK token surged 10% as StarkWare addressed community concerns by reducing April’s token unlock.
  • Over 700 million tokens were airdropped, sparking worries of potential dumping by stakeholders.
  • The revised Starkware token unlock schedule includes gradual monthly unlocks, starting with 64 million tokens in April, aiming to stabilize the market.
Starknet’s STRK token experienced a surge of up to 10% on Thursday following an announcement from developer firm StarkWare. The company has responded to community criticism by significantly reducing the number of tokens set to the Starkware token unlock schedule in April.
Starkware Token Unlock Schedule Has Now Changed After Community Criticism

Read more: How To Get Starknet Airdrop: A Comprehensive Guide To Earn STRK Tokens

Starkware Token Unlock Schedule Adjustment Spurs STRK Surge

This change in the Starkware token unlock schedule comes after Starknet, an Ethereum layer-2 project, distributed over 700 million tokens to early users and contributors this week. Concerns were raised regarding potential token dumping by developers and investors. The current market capitalization of the tokens, based on circulating supply, is approximately $1.44 billion.

In response to feedback, StarkWare has adjusted the lockup schedule for early contributors and investors. Initially, over 1.3 billion STRK tokens, representing about 13% of the total supply valued at over $2.5 billion, were set to unlock on April 15, shortly after the token’s February 20 launch.

Revised Unlock Schedule Aims to Secure STRK Market Stability

Under the revised schedule, 64 million STRK tokens worth nearly $125.5 million, constituting 0.64% of the total supply, will unlock on April 15. The unlock will then continue monthly, with 64 million STRK tokens being released until March 15 next year. Subsequently, the monthly release will increase to 127 million STRK tokens for the following two years until March 15, 2027.

StarkWare, the primary developer behind Starknet, emphasized the importance of making the lockup schedule more gradual in response to input from ecosystem partners and collaborators. This adjustment aims to address concerns regarding token supply dynamics and promote a more stable market environment for STRK.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.