StarkWare has agreed to revise its token lockup schedule for early contributors and investors after stinging criticism from its community.
The STRK token airdrop began earlier this month, and around 49.9% of the total allocation of the token supply was allocated to core contributors and investors.
STRK Lockup Schedule Changed
The STRK token was initially subject to a four-year lockup period, with a one-year cliff that was due to expire on the 15th of April. However, the community was extremely critical of the airdrop, particularly the vesting approach, with community members stating that the plan was heavily in favor of insiders. Following the criticism, StarkWare decided to adjust unlocking timelines for the token, making the process more gradual. StarkWare co-founder and CEO Eli Ben-Sasson talked about the revised schedule in a press release, stating,
“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. We value this community and want to earn its trust by building great tech that embodies blockchain values and stands the test of time.”
Ben-Sasson further added that StarkWare wanted to earn the trust of the community, and he believed in showing this with the company’s actions and words.
“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 we are grateful to have the support of our investors in this decision.”
New Schedule
The change from StarkWare comes after Starknet airdropped over 700 million tokens to early users, contributors, and other groups. The company added in additional disclosures that developers and investors might be able to sell their allocations as early as next month. However, under the new schedule, only 0.64% of the 10 billion tokens initially minted will unlock on the 15th of April instead of the earlier planned 13.4% (1.34 billion tokens).
This unlock will continue at the same pace of 0.64% until the 15th of March 2025. Following this, the pace of the unlock will increase to 1.27% per month. This will continue for 24 months until the 15th of March, 2027. Under the new unlock schedule, 580 million tokens will be unlocked by the end of 2024, far less than the 2 billion as per the previous unlock schedule.
“The gradual unlock will continue at a pace of 0.64% (64 million tokens) monthly until the 15th of March, 2025, after which it will change to 1.27% (127 million tokens) monthly for the next 24 months until the 15th of March, 2027. 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. 1.4 billion additional tokens will be gradually unlocked by the end of 2025, another 1.5 billion will be unlocked by the end of 2026, and 380 million will be unlocked by the 15th of March, 2027.”
The STRK token is currently trading at $2.05.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
