Today in Markets

Not Everyone is Happy with Starknet's Token Drop

Novel qualifying criteria and aggressive insider token unlocks pissed off some Starknet users.
Feb 15, 20241 min read

Yesterday, anons on Crypto Twitter met Starknet’s airdrop announcement with fury! What made people upset about the STRK drop?

With tokens set to be airdropped to over 1.3M addresses, Starknet’s airdrop ranks as the widest disbursement that crypto has ever seen, but many legitimate Starknet users were livid to find themselves excluded from the network's first round of Provisions.

Common among the complaints are gripes about how criteria for maintaining a 0.005 ETH balance at the time of the snapshot unfairly excluded many users from qualifying for this drop.

While Starknet retains the full rights to determine how to conduct their airdrop, it is clear that their method of verifying ETH ownership excluded many users from receiving an allocation who would have otherwise qualified for one.

Compounding this frustration, many were shocked to find that the circulating supply of STRK is set to nearly double in less than two months after the airdrop becomes claimable, with 13.1% of the total supply set to unlock for Starknet investors and contributors on April 15.

Starknet’s team defended the move by claiming that unlocks were subject to a one-year lock up starting on the STRK token generation event, which actually occurred in November 2022 for governance purposes, and that the April 15 date already represents an extension.

It is unusual for a bluechip project to have its first major insider vesting hurdle so soon after the token becomes tradable and clear that April’s unlocks could pose a threat to STRK price if investors and team members look to cash out.


Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Account Light mode Log Out