StarkWare Revises STRK Token Lockup Terms Following Community Backlash: Key Updates

In response to feedback, StarkWare has modified the lockup conditions for its STRK tokens allotted to early supporters and investors to adopt a more phased release strategy.

StarkWare, the company behind the Starknet layer 2 scaling solution, has announced alterations to the originally planned release mechanism for its STRK tokens.

This decision was prompted by community apprehension that the original release schedule could potentially allow investors to offload their tokens en masse to unsuspecting Starknet users.

StarkWare Announces Revised Token Release Plan Initially, StarkWare had scheduled the release of 1.3 billion STRK tokens to investors and early backers for April 15, immediately after the token’s launch this week. The proposed short lockup duration raised alarms among Starknet’s user base and the broader cryptocurrency community due to fears that the substantial release, equivalent to about 13% of STRK’s total supply, might negatively influence the token’s market price.

Following community feedback, StarkWare disclosed on X that it is revising its lockup timetable to facilitate a more staggered release of tokens to its early supporters and investors.

Per the updated plan, only 0.64% of the initially created 10 billion tokens will be made available on April 15, a reduction from the previously planned 13.4% (1.34 billion tokens).

StarkWare detailed that the release would continue at a monthly rate of 0.64% (64 million tokens), extending until March 15, 2025. From that point, the monthly release rate will escalate to 1.27% (127 million tokens) over the next 24 months, concluding on March 15, 2027.

According to this new schedule, by the end of 2024, 580 million tokens allocated to early contributors and investors will be unlocked, in contrast to the 2 billion tokens that would have been released by that time under the old schedule.

Impact on STRK Token’s Market Value The initial release framework led to substantial debate, contributing to a steep decline in STRK’s price. In the 48 hours following its launch, STRK’s price fell almost 60%, from a high of $4.41 on February 20 to below $1.90.

Nevertheless, after StarkWare’s announcement of the adjusted release plan, the price of STRK rebounded, climbing over $2, marking a 6% increase in the last day, as reported by CoinGecko.

Voyager data indicates that over 440 million STRK have been claimed by qualified participants, accounting for 95% of the total STRK presently available for claim. Moreover, according to DefiLlama, Starknet’s total value locked has reached a new milestone, doubling in the last 24 hours to attain $127.72 million for the first time.

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