In a significant move that underscored the power of community engagement within the blockchain space, Starknet‘s STRK token witnessed a 10% surge on Thursday. This uptick came on the heels of an announcement by StarkWare, the developer behind the Starknet project, which has agreed to substantially modify the unlock schedule for tokens allocated to the team. This decision was made in response to considerable critique from the Starknet community regarding the initial plan to unlock a large portion of tokens in April.
StarkWare Heeds Community Feedback
The change in StarkWare’s stance was precipitated by the community’s reaction following a substantial airdrop earlier in the week, which saw over 700 million tokens distributed to early users, contributors, and other key groups. However, the revelation that developers and investors might soon be able to sell significant portions of their holdings as early as the following month sparked a heated debate. With the market capitalization of the circulating supply of tokens standing at approximately $1.44 billion, the implications of such a move were closely scrutinized.
In a gesture of goodwill and collaboration, StarkWare announced, “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,” showcasing a commitment to community input and sustainable project growth.
Revised Unlock Schedule
Under the revised plan, a mere 0.64% of the initially minted 10 billion tokens will now unlock on April 15, a stark reduction from the originally planned 13.4% (1.34 billion tokens). StarkWare detailed the gradual unlock process, stating, “The gradual unlock will continue at a pace of 0.64% (64 million tokens) monthly until March 15, 2025, after which it will change to 1.27% (127 million tokens) monthly for the next 24 months until March 15, 2027.”
This adjustment means that by the end of 2024, 580 million tokens held by early contributors and investors will be unlocked, significantly less than the 2 billion tokens slated for release under the previous schedule. By the end of 2025, an additional 1.4 billion tokens will be unlocked gradually, followed by another 1.5 billion by the end of 2026, with the final 380 million unlocking by March 15, 2027.
Starknet’s Technological Edge
Starknet, a layer-2 solution built atop Ethereum by StarkWare, leverages zero-knowledge cryptography to enhance scalability and efficiency. This technology enables decentralized applications on the network to process transactions more swiftly and at reduced fees by aggregating them off-chain into a single proof submitted to Ethereum.
Market Response and Strategic Adjustments
The initial token unlocking plan had drawn skepticism from various market observers, influencing the STRK token’s market performance. The token, which started trading at $5 earlier in the week, experienced volatility, dipping to $2. However, the revised schedule appears to have quelled some concerns, as evidenced by the token’s recovery in value.
StarkWare Token Unlock Schedule Adjustments
| Date | Original Unlock Percentage | Revised Unlock Percentage | Total Tokens Unlocked |
|---|---|---|---|
| April 15, 2023 | 13.4% | 0.64% | 64 Million |
| March 15, 2025 | – | 0.64% Monthly | 580 Million |
| March 15, 2027 | – | 1.27% Monthly | 3.46 Billion |
StarkWare’s decision to revise the STRK token’s unlock schedule in response to community feedback highlights the dynamic interplay between developers and stakeholders in the blockchain ecosystem. By prioritizing a more gradual release of tokens, StarkWare aims to mitigate market impact and align more closely with the long-term interests of its community. This approach reflects a broader trend within the blockchain industry towards more sustainable growth strategies and the importance of stakeholder engagement in shaping project trajectories.
Featured image credit: Bloomberg via Getty Images