Starknet’s STRK Token Adjusts Unlocking Schedule After Community Backlash

StarkWare, the creator of the Ethereum layer-2 blockchain Starknet, faced severe backlash over the release schedule of its new STRK tokens.

STRK, the cryptocurrency of Starknet, surged following StarkWare’s decision to postpone token unlocks.

The value of Starknet’s STRK token soared by a whopping 10% on Thursday following a controversial decision by developer firm StarkWare. The company, in response to strong criticism from the community, has agreed to reduce the number of tokens that will be unlocked in April.

A Shift in Unlocking Schedule

Initially, the plan was to unlock 13.4% (1.34 billion tokens) of the 10 billion tokens minted on April 15. However, in an emailed statement, StarkWare announced that only 0.64% of the tokens will be unlocked on that date. This adjustment aims to address concerns raised by ecosystem friends and collaborators.

Under the revised schedule, token unlocking will occur gradually. Starting in April, 0.64% (64 million tokens) will be unlocked monthly until March 15, 2025. Then, it will change to 1.27% (127 million tokens) monthly for the next two years, ending on March 15, 2027. This new plan means that only 580 million tokens held by early contributors and investors will be unlocked by the end of 2024, instead of the previously anticipated 2 billion tokens.

What Led to the Change?

The controversy surrounding Starknet’s unlock schedule followed the airdrop of more than 700 million tokens earlier this week. These tokens were distributed to early users, contributors, and targeted groups. To exacerbate matters, developers and investors were informed that they might be able to sell a significant portion of their allocated tokens as early as next month.

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The market capitalization of the tokens, based on the circulating supply, currently stands at around $1.44 billion. Such rapid market movements prompted a strong community backlash and demands for a fairer unlocking schedule.

A Deeper Look into Starknet and its Functionality

Starknet, developed by StarkWare, is an Ethereum layer-2 network that employs zero-knowledge cryptography. This technology enables decentralized applications operating on Starknet to scale the Ethereum blockchain by bundling transactions off-chain into a proof submitted to Ethereum. In turn, Ethereum can process these transactions faster and at lower fees.

Now, let’s address some additional questions and concerns you may have:

Q: Can you explain what a layer-2 network is?

A: Absolutely! A layer-2 network, such as Starknet, functions as an additional layer built on top of an existing blockchain. It aims to enhance the scalability and speed of the underlying blockchain, making it more efficient for decentralized applications (dApps) to operate.

Q: Why was there community backlash against Starknet’s unlocking schedule?

A: The community was concerned that the original unlocking schedule gave too much control and advantage to early contributors and investors. This perceived inequity caused a decline in the token’s value and prompted demands for a fairer distribution that would benefit a broader range of participants.

Q: What does the future hold for Starknet and its token, STRK?

A: While it’s difficult to predict the future with certainty, Starknet’s reduction in unlocking tokens is a positive response to community feedback. This adjustment could help restore confidence and stability in the token’s value. As the development of Starknet progresses and it gains more adoption, we may witness a gradual appreciation in the value of STRK. However, as with any investment, it’s important to conduct thorough research and make informed decisions.

As we wrap up, it’s worth noting that the blockchain and financial landscapes are ever-evolving. It’s crucial to stay updated and informed on the latest trends and developments in order to make the best decisions for your investments. 💪💰

🔍📚 Reference Links: – Starknet’s STRK Token Airdrop – Solana Meme Coin Airdrop – Tether’s Record Profit

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