StarkWare revises STRK token lockup schedule after criticism

The new unlock schedule will see 580 million tokens unlock by the end of this year instead of 2 billion

February 22, 2024 05:59 pm

CryptoFX/Shutterstock modified by Blockworks

StarkWare, the startup behind the scaling solution Starknet, says it will revise its token lockup schedule for early contributors and investors.

The Starknet Foundation began its airdrop of the STRK token earlier this month. Around 49.9% of the total supply of STRK tokens was allocated to “core contributors” and “investors.”

These tokens were initially subject to a four-year lock-up period, with a one-year cliff initially set to expire on April 15 of this year.

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As previously reported by Blockworks, the project drew sharp criticism in the wake of its airdrop, and its approach to vesting drew particular ire. Some observers said the vesting plan disproportionally favored insiders.

StarkWare ultimately decided to adjust unlocking timelines for STRK tokens, and make the process more gradual.

“Over the past few days, we listened carefully to concerns regarding the long-term alignment of StarkWare with the Starknet ecosystem. Accordingly, we reviewed the lockup schedule and proposed a modification with a more gradual release of the tokens,” Eli Ben-Sasson, StarkWare co-founder and CEO, said in a press release reviewed by Blockworks.

He added, “We want to earn the community’s trust, and believe in showing this with actions as well as words. We feel this is the best path forward given our long-term commitment to Starknet and its ecosystem, and are grateful to have the support of our investors in this decision.”

The latest schedule will see 64 million (0.64%) tokens unlock on April 15 instead of the initial 1.34 billion (1.34%) tokens. This unlock will continue monthly at a pace of 0.64% until March 15, 2025.

After the year has passed, the unlock pace will change to 1.27% monthly, for 24 months, until March 15, 2027.

This new unlock schedule will see only 580 million tokens unlocked by the end of this year, less than the initial 2 billion tokens previously scheduled to unlock.

The STRK token is currently trading at $1.96, according to CoinGecko.

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