PATNA (CoinChapter.com) — The STRK token airdrop by Starknet has ignited a discourse within the crypto community after facing severe criticism over multiple points. Starknet, an Ethereum scaling solution, made headlines for announcing an airdrop to 1.3 million eligible wallets, a record in itself. This eligibility for the airdrop spanned a broad spectrum of the crypto community.
The criteria were based not only on transaction history and activity but also on contributions that have fueled network growth. Yet, the token distribution plan ran into controversies.
Starknet Airdrop Faces Token Allocation Issues
The core of the controversy lies in Starknet’s token allocation strategy. In an unprecedented move, Starknet announced the distribution of over 1.8 billion STRK tokens to nearly 1.3 million wallets.
Starkent developers designed the airdrop to reward users, developers, and contributors across the Starknet and Ethereum ecosystems, promoting a decentralized governance model. With an inflation rate capped at 4%, the airdrop promised substantial annual returns for stakeholders, indicating a long-term vision for network growth and sustainability.
However, the airdrop’s execution raised eyebrows, particularly regarding the unlocking schedule for tokens allocated to Starkware’s insiders. Notably, Starlink plans to unlock 1.314 billion STRK tokens for its team and investors just two months after launch, raising concerns over market stability due to potential sell-offs.
Additionally, data analysis revealed issues with duplicate accounts, prompting discussions on the integrity of the airdrop’s allocation process. Interestingly, following the airdrop announcement, active addresses on Starknet returned to normal levels.
Starknet’s active addresses had spiked to 226,576 from an average of 70,200 addresses over the past three months.
The Controversy Unfolds
The crypto community’s reaction was swift and critical. High-profile voices within the ecosystem, such as NFT collector ‘dingaling,’ expressed dismay over the unexpected eligibility criteria and the rapid unlock schedule, fearing it could lead to market instability due to potential sell-offs.
The sentiment was amplified by users on social media, who labeled the move as “predatory” and “borderline criminal,” questioning the fairness of the distribution strategy.
In response, Starkware’s CEO, Eli Ben-Sasson, defended the company’s approach. Ben-Sasson argued that the unconventional token allocation and unlock strategy underscored Starkware’s innovative ethos and commitment to the network’s future.
Moreover, the Starknet CEO defended the requirement that users have 0.005 ETH in their wallets before Nov. 15, 2023, to be eligible for airdrops.
Despite Ben-Sasson’s defense, the controversy has sparked a broader debate on the ethics of token distribution, the balance between rewarding early contributors and maintaining market stability, and the long-term implications for community trust and project governance.
CoinChapter has reached out to the Starknet team for comments but has not received a response. We'll update the article accordingly.
