Starknet, Ethereum’s layer-2 blockchain, has witnessed a significant decline in active users following backlash over its Starknet Provisions Program airdrop. The controversy surrounding eligibility criteria and token distribution has triggered discontent within the community.
Starkscan data reveals a stark shift in Starknet’s active user base over the past week. After experiencing a surge to over 220,500 active users on February 14, the network saw a rapid decline, with active accounts plummeting to just over 84,000 on February 19.
Central to the discontent is the exclusion of users with less than 0.005 Ether in their accounts on November 15, 2023, from token distributions. Many users claim to have missed out despite significant transactions and contributions to the network.
Starknet acknowledged the grievances, stating that it is working to address concerns but cautioned that a resolution would require time for research, design, and testing.
Another contentious issue is the token unlock schedule, which disproportionately benefits Starknet investors and early contributors. The allocation of 1.3 billion STRK tokens, representing 13% of the total supply, on April 15, just two months after launch, has sparked criticism.
Despite the controversy, STRK is trading for up to $1.98 on pre-market exchanges, suggesting a potential market capitalization of around $1.38 billion at launch. However, Starknet’s total value locked has experienced a slight decline from its all-time high on February 14.
The controversy surrounding Starknet’s airdrop program underscores the importance of transparent and equitable token distribution mechanisms. As the project navigates these challenges, addressing community concerns and fostering trust will be crucial for its long-term success in the competitive blockchain landscape.
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