Starknet, despite making changes to its controversial token unlock schedule, is experiencing a decline in network activity. According to Starkscan data, the number of active users fell below 100,000 addresses for the second time since the announcement of its provisions airdrop on Valentine’s Day, reaching around 43,000 on March 1. Additionally, transactions per second decreased from a peak of 12.3 on airdrop day to 1.90.
The network, which operates on the Ethereum layer-2, distributed over 700 million STRK tokens to 1.3 million eligible wallets on February 20 through the airdrop. This caused a surge in daily user count to over 380,000. However, the planned unlocking event of 1.3 billion tokens for early investors and contributors on April 15 received backlash from the public. In response, Starknet adjusted its token release schedule. Now, 64 million tokens will be released on April 15, with the remaining tokens gradually unlocked until March 2027.
Bitrue, one of the crypto exchanges that listed STRK on airdrop day, supports the revised token release schedule. According to Anchit Goel, the head of listings at Bitrue, the initial plan would have increased the token supply and added to the selling pressure from early investors and contributors. The change, Goel believes, helps maintain a more stable token value and reduces the risk of rapid price fluctuations.
Despite the revisions to the token unlock schedule, Starknet’s network engagement metrics continue to decline. The bankruptcies of major backers Three Arrows Capital (3AC) and Alameda Research are also adding selling pressure to the market. Blockchain data shows that 3AC liquidator Teneo owns a significant amount of STRK tokens, while there is no record of Alameda-associated wallets receiving STRK tokens.
Concerns have also been raised about token allocation and centralization within the project. The Starknet Foundation controls a majority of the tokens, potentially tipping the network’s governance and voting power to one side. However, Stylianos Kampakis, a tokenomics auditor at blockchain security firm Hacken, suggests that token allocation can become more decentralized over time.
Starknet’s approach to its token generation event (TGE) has also faced scrutiny. The TGE, held in November 2022, took place over a year before the cryptocurrency was accessible to the broader public. This approach has drawn criticism for benefiting insiders or early investors. Bitrue’s Goel argues that holding a TGE before exchange listings is common for modern projects, allowing them to develop technology and establish partnerships. However, the delayed launch could contribute to uncertainty and reduced investor confidence.
Starknet’s recent provisions airdrop, one of the largest in history, attracted “airdrop hunters.” These users qualified for the airdrop by meeting specific criteria, but some bypassed restrictions to receive multiple airdrops. This has caused discontent among community members who may not have received airdrops despite contributing to nurturing the network.
Out of the over 700 million tokens allocated to the airdrop, at least 450.5 million STRK tokens have been claimed. The Starknet Foundation is expected to hold future provisions airdrops to include community members who were left out, but less than 200 million tokens remain for distribution under the provisions program.