Allocation of Starknet Unlock Token (STRK) Revised Following Community Protests

Source: Footprint Analytics

StarkWare, the company behind layer-2 scaling solution Starknet, announced changes to the allocation and unlock schedule of the STRK token on February 23, 2024.

StarkWare made these changes after facing strong criticism from the community regarding the initial token unlock plan, which was deemed too short with an excessive token allocation just two months after its release on February 20.

The community expressed concerns that StarkWare's plan could enable investors to exploit retail Starknet users as exit liquidity, potentially leading to a collapse in STRK prices due to more selling than buying.

New Timing and Allocation of STRK Tokens

Initially, 1.3 billion STRK tokens, approximately 13% of its total supply, were set to be distributed to the market on April 15. With these changes, only 64 million STRK tokens worth nearly US$125.5 million and 0.64% of the total supply of 10 billion will be released on April 15.

The token unlock will continue with 64 million STRK tokens per month until March 15 next year. It will then increase to 127 million STRK tokens per month for the following two years until March 15, 2027.
"Under the new unlocking plan, 580 million tokens held by early contributors and investors will be unlocked by the end of 2024, compared to the previously scheduled 2 billion tokens," StarkWare stated.

The price of the STRK token is currently trading at US$2.04. This price marks a decrease of over 40% from STRK's highest price on February 20 at US$3.66.

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