Following the recent announcement regarding the upcoming STRK token airdrop, Ethereum software firm Starkware faced criticism from the crypto community about the quick unlock and sale of a significant portion of the token supply. In an exclusive interview with Decrypt, Starkware’s CEO defended the decision and emphasized that it will not harm the token’s community.
On April 15, over 1.3 billion STRK tokens allocated to investors and early Starknet contributors will unlock for transfer and sale, which has sparked concerns about potential negative effects on the token’s price and community ecosystem. Typically, airdrop allocations are locked for a longer period to prevent price volatility and safeguard the project from securities-related litigation. However, Starkware chose to deviate from this standard industry practice, citing its unique approach and long-term commitment to the project.
Despite criticism from some in the crypto space, Starkware’s CEO, Eli Ben-Sasson, stands by the decision to make the token lock period shorter, emphasizing the team’s unwavering dedication to advancing Starknet. Addressing concerns about a possible dump of STRK tokens, Ben-Sasson stressed that prolonging the lock period would not necessarily prevent such scenarios, and that early contributors deserve to be properly rewarded for their contributions.
As the industry continues to evolve, differing perspectives and approaches to token distribution and lock periods are expected. Starkware’s stance is one example of the ongoing debate within the crypto and NFT community about the best practices for airdrops and tokenomics. Ultimately, the CEO’s message conveys a strong sense of commitment and integrity in driving the long-term success of the Starknet project.
