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Starknet (STRK) Up 13% on Revised Token Distribution Schedule

source-logo  coinedition.com 23 February 2024 11:37, UTC

Starknet, the layer 2 scalability solution built on Ethereum, has announced a major overhaul to its STRK token unlock model. This announcement followed strong criticism by the crypto community of STRK’s initial unlock schedule.

Important update:

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.

We value this community and want to earn its trust by building great tech that…

— StarkWare (@StarkWareLtd) February 22, 2024

Starknet developer StarkWare, responded to the backlash by implementing a revised schedule with a more gradual distribution of STRK tokens. This decision was met with a positive market reaction, with the STRK token increasing in value by approximately 10%.

Gradual Token Release Strategy

In response to community feedback, StarkWare has shifted from its initial plan, which would have seen a substantial portion of STRK tokens released in a short timeframe. The original schedule proposed unlocking 1.3 billion STRK tokens, approximately 13% of the total supply, shortly after the token’s launch. Critics argued this could potentially harm the token’s value and unfairly benefit early investors at the expense of the broader Starknet user base.

1. listened to concerns re. long-term alignment of @StarkWareLtd w/ Starknet ecosystem.
2. proposed a more gradual release schedule
3. believe trust is earned with actions, not just words
4. thank investors for their support on this@StarkWareLtd ❤️ @Starknet https://t.co/WZsiZsn3yM

— Eli Ben-Sasson (@EliBenSasson) February 22, 2024

The new strategy significantly reduces the immediate impact by distributing 64 million tokens, representing 0.64% of the total supply, starting April 15. This approach spreads the token released over several years, with monthly unlocks planned to increase until March 2027 gradually. By the end of 2024, 580 million tokens will be released to early contributors and investors, a stark contrast to the 2 billion initially planned.

Market Reaction and Trust Rebuilding

The market has welcomed the updated StarkWare tokens distribution plan. In response to the statement, the STRK token appreciated by roughly 10%, which indicated the restoration of investors’ confidence.

STRK/USD 24-hour price chart (source: CoinStats)

At press time, STRK was exchanging hands at $2.09, reflecting a 13.09% surge from the intra-day low. Concurrently, STRK’s market capitalization soared by 13% to $1,522,162,074 despite a dip in the 24-hour trading volume by 4.92% to $926,728,550.

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