Starknet’s own token, STRK, is gearing up for trading on centralized exchanges starting today, right after the distribution claims for nearly 1.3 million wallets kicked off.
This means users will soon be able to trade STRK on major platforms like Binance, Bybit, Bitfinex, and OKX. Binance has already announced plans to launch trading for specific pairs once liquidity thresholds are satisfied.
Exciting Developments Surrounding Starknet’s Token Distribution
Starknet, an Ethereum Layer-2 network employing a ZK-Rollup solution for scaling decentralized applications, is preparing for a significant milestone with the launch of its native token, STRK. The token is pivotal for decentralizing and governing the network, as outlined in the recent token provisions plan by the Starknet Foundation.
Diego Oliva, CEO of the Starknet Foundation, emphasized the importance of STRK in facilitating decentralized scaling for Starknet. He stated that the token’s design is tailored to empower the community in running and managing the network.
Following the announcement, trading for STRK is set to commence after the initiation of airdrop claims, scheduled to start at 7 a.m. ET. The distribution involves a substantial amount of 728 million STRK, equivalent to 7.28% of the total supply capped at 10 billion tokens. Eligibility for claiming the token is based on a November snapshot, considering transaction and interaction volumes on the network, with approximately 1.297 million wallets qualifying for the airdrop.
Various stakeholders are eligible to receive STRK tokens, including early users of Starknet and StarkEx, Ethereum contributors, such as members of the Protocol Guild and authors of Ethereum Improvement Proposals (EIPs), as well as solo stakers. Additionally, open-source developers from outside the web3 ecosystem are also included in the distribution. Claimants have until June 20 to stake their claims.
Although the STRK tokens are not yet live, early indications of market sentiment are reflected in pre-launch pricing on decentralized derivatives exchange Aevo, where STRK is currently trading at $2.09. This valuation implies a fully diluted market capitalization of $20.9 billion, signaling significant investor interest in the upcoming token launch.
Controversy Surrounding Starkware’s Token Distribution
Starkware, a prominent player in the blockchain space, is facing criticism over its token distribution strategy, which entails unlocking a significant portion of tokens for core contributors and investors shortly after the token’s launch. This move, which sees over 1.31 billion STRK tokens, equivalent to 13.1% of the total supply, being unlocked, has sparked outcry within the community.
Critics, including the founder of Endless Clouds, known pseudonymously as Loopify, have denounced the unlock schedule, labeling it as predatory. They argue that unlocking such a large portion of investor tokens shortly after the token’s launch under the guise of a token generation event (TGE) from two years ago is misleading and unfair. The initial TGE occurred in November 2022, with the tokens designated for governance purposes but restricted from movement or trading.
Originally, the token allocations for core contributors and investors were slated to be unlocked after a one-year cliff in November 2023, following the TGE in 2022. However, due to delays in token readiness, this timeline was extended by five months to April 15. This extension has resulted in a significantly shortened interval between when traders can purchase the tokens and when investors can sell their discounted tokens on the open market.
Furthermore, another source of backlash emerged as many Starknet users found themselves excluded from the provisions due to the requirement of holding 0.005 ETH at the time of the November snapshot. Despite the outcry, Starkware remains steadfast in its implementation of the distribution plan.
Starkware co-founder and CEO Eli Ben-Sasson addressed the concerns, stating that the 1.3 million recipients will receive liquid tokens upon receipt. However, other contributors who played a significant role in the development of Starknet will have to wait until April for the first third of their tokens to be unlocked, with subsequent unlocks occurring monthly thereafter.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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