StarkWare has opted to revise the token unlocking schedule for Starknet (STRK) due to concerns regarding potential market dynamics. The original plan raised worries that early network investors could flood the market with tokens, adversely affecting retail Starknet users. In response, StarkWare has introduced a more gradual unlocking schedule, aiming to mitigate potential negative impacts.
The adjusted unlocking schedule entails a shift towards smaller and more regular token releases over a span of three years. This contrasts with the initial plan, which featured larger token drops set to occur within a mere two months. StarkWare announced these alterations on February 22, following a review of feedback and input from stakeholders.
Under the revised plan, 64 million STRK tokens, equivalent to nearly $125.5 million, will become unlocked on April 15. This amounts to approximately 0.64% of the total supply of 10 billion tokens. Subsequently, token unlocking will persist at a rate of 64 million STRK per month until March 15 of the following year. Over the subsequent two years until March 15, 2027, this monthly unlocking volume will increase to 127 million STRK.
Initially, the original plan proposed the unlocking of over 1.3 billion STRK, constituting roughly 13% of the total supply, on April 15—merely two months after the token's launch on February 20. StarkWare has adjusted this figure, indicating that under the new plan, early contributors and investors will see 580 million tokens unlocked by the end of 2024, a significant reduction from the previously envisaged 2 billion tokens.
The shorter timetable outlined in the initial unlocking schedule had sparked controversy among Starknet users and market observers. Critics argued that it could enable investors to capitalize on retail users of Starknet as a means of exit liquidity. Following StarkWare's announcement of the revised unlocking plan, STRK experienced a brief surge in value, rising above $2 and registering a nearly 5% increase on the day. This adjustment comes after STRK saw substantial early adoption, with over 1.3 million wallets receiving a distribution of 700 million STRK tokens through an airdrop on February 20.
