Starknet User Decline Due to Token Distribution Discontent

STARKNET starknet STRK

Users of the blockchain are upset because they’re not eligible for the airdrop due to minimum wallet requirements, and they feel the unlock schedule benefits investors too much, leaving them dissatisfied.

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In the last week, there has been a notable decrease in the number of people using Starknet, the blockchain platform. This decline comes as more users express dissatisfaction with the Starknet Provisions Program airdrop.


Starknet’s Active Users Surge Ahead of Airdrop Announcement

According to data from Starkscan, the Ethereum layer-2 blockchain experienced a significant increase in active users, soaring from under 20,000 on February 9 to over 220,500 by February 14. This spike occurred as users and airdrop participants rushed to the network in hopes of securing an allocation.

A three-month chart of active Starknet – Source: Starkscan

However, following the release of details for Starknet’s scheduled airdrop on February 20, active user numbers dropped sharply, nearing levels seen before the announcement. On February 19, the network recorded just over 84,000 active accounts.

Starknet’s users and community members have expressed concerns about the airdrop criteria. Specifically, they are dissatisfied with the exclusion of users who had less than 0.005 ETH in their account on November 15, 2023, an amount worth approximately $10 at the time, from receiving token distributions.

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Starknet Addresses User Concerns Regarding Airdrop Exclusions

Many users across the X platform and Starknet’s Discord community have reported missing out on token distributions despite actively participating in the network. This exclusion is attributed to not meeting the minimum wallet requirement, even though these users have conducted significant transactions and contributed liquidity to the platform, amounting to thousands of dollars.

In a post on X dated February 19, Starknet acknowledged the feedback regarding users being left out due to specific Provisions criteria. The project assured users that they are actively working to address these concerns. However, Starknet emphasized that finding a solution will take time as it requires thorough research, design, and testing.

Starknet’s Token Unlock and Market Dynamics

One contentious issue among Starknet users revolves around the token unlock schedule, particularly regarding the distribution of 1.3 billion STRK tokens—equivalent to about 13% of the total supply—on April 15, just two months after the platform’s launch. This schedule appears to heavily favor Starknet investors and early contributors.

In contrast, approximately 700 million STRK tokens, accounting for about 10% of the total supply, are set for distribution on February 20. This discrepancy in distribution timelines has raised eyebrows within the Starknet community.

At present, STRK is trading for up to $1.98 on pre-market perpetual exchanges Aevo and HyperliquidX. This suggests that the platform’s market capitalization could reach around $1.38 billion at launch, highlighting significant potential value.

Despite a decline in active users, Starknet’s total value locked remains considerable, currently standing at $54.18 million. However, this figure represents a decrease of approximately 5.7% from its all-time high of $57.5 million recorded on February 14, according to data from DefiLlama.


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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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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