StarkWare has decided to change the unlock schedule for the STRK token after controversy.
StarkWare, the developer behind Starknet, has amended its token unlock schedule in response to concerns that the initial plan could lead to a large sell-off by early investors, potentially impacting retail users of Starknet
The new schedule entails gradual token release over three years, addressing worries about potential token dumping.
“In recent days StarkWare reviewed feedback and decided to adjust the unlocking timeline, making it more gradual,” StarkWare, Starknet’s developer, said in a Feb. 22 X post.
Starting April 15, 64 million STRK tokens worth $125.5 million will be available, followed by monthly releases until March 15, 2024.
Originally, the plan was for over 1.3 billion STRK tokens, around 13% of the total supply valued at over $2.5 billion, to be unlocked on April 15, just two months after the token’s launch on February 20.
“Under the new unlock plan, 580 million tokens held by early contributors and investors will be unlocked by the end of 2024, as opposed to 2 billion of those tokens under the previous schedule,” StarkWare said.
Meanwhile, investor concerns about the original unlock schedule causing potential token dumping led to a price drop of over 60%.
After StarkWare’s announcement, STRK briefly spiked above $2, with a 5% rise in the last 24 hours.
Additionally, over 700 million STRK tokens were claimable on Feb 20, with 45 million claimed within the first 90 minutes.
Data from Voyager indicates about 94% of the total STRK distribution has been claimed by eligible users.
Starknet’s total value locked surpassed nine figures for the first time, hitting a new high of $118 million, according to DefiLlama.
StarkWare hopes the new token unlocking schedule will promote the healthy and long-term development of the Starknet ecosystem, and that early contributors and investors will support the network’s vision and mission.
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