StarkWare changes the STRK token unlocking schedule to appease public opinion

StarkWare will unlock tokens according to the new schedule, and adjust the initial STRK allocation for the development team and investors to 0.64%. 

StarkWare changes the STRK token unlocking schedule to appease public opinion. Photo: Kointimes

StarkWare, the company that develops layer-2 Starknet, decided to restructure the token vesting schedule, after a wave of heavy criticism from the community.

According to the original plan, Starknet will release 13% of the total token supply (approximately 1.3 billion USD) to the development team and investors on April 15. This means that the circulating supply of STRK will increase 3 times and makes the community extremely concerned.

Before the wave of criticism, StarkWare will slow token allocation. According to the new schedule, only 0.64% of the total token supply (64 million STRK worth nearly 125.5 million USD) will be unlocked on April 15.

Then each month, Starknet will vest 64 million STRK until March 2025 and exchange it to 127 million STRK for the next 24 months until March 15, 2027.

StarkWare explains:

"According to the new unlocking plan, Starknet will unlock 580 million tokens for early contributors and investors by the end of 2024, instead of 2 billion tokens as previously announced. An additional 1.4 billion tokens will be gradually unlocked by the end of 2024. 2025, another 1.5 billion tokens released by the end of 2026, and 380 million tokens entered circulation on March 15, 2027.

The above statement was made after this layer-2 projectannounced an airdrop of over 700 million STRKfor users and members who contribute early. After the token reward was considered "biased" for programmers, "unfair" for general users,Activity on the Starknet network became more gloomy. STRK also has a "divide two and three price" screen afterListing on major exchanges.

However, the situation is reversing. After the vesting restructuring news, STRK has increased by more than 12% and is trading around the 2 USD mark. The platform's TVL also jumped to 144 million USD, double the figure of 71 million USD three days ago. 

15m chart of the STRK/USDT trading pair on Binance. Photo taken at 10:15 AM on February 23, 2024

Developed by StarkWare,Starknetis a layer-2 protocol using zk-Rollups technology, helping dApp developers not be limited in scale of operation while still inheriting the security from Ethereum.