ETH

Starknet Userbase Plummets 65% Amid Controversial Airdrop Amendments

by BSCN

February 20, 2024

The chaotic ride began with a surge in active users from under 20,000 to over 220,500, fueled by anticipation for the Starknet Provisions Program airdrop.

The Ethereum layer-2 blockchain, Starknet, witnessed a surge and subsequent freefall in active users, dropping by a staggering 65% within just seven days.

After reaching under 20,000 active users on February 9, the network reached an impressive peak of over 220,500 active users on February 14. This surge was attributed to the anticipation surrounding the Starknet Provisions Program airdrop.

However, the excitement was short-lived as Starknet shared details for its airdrop scheduled for February 20. The user base witnessed a dramatic decline, with just over 84,260 active accounts on February 19, a 65% drop from its peak.

Starknet Active Accounts Chart (Source: Starkscan)

As the platform prepared for a substantial airdrop at the time, unrest and controversy erupted among its users.

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Core Issues in Airdrop Eligibility

The heart of the matter lies in abrupt changes to the eligibility criteria for the upcoming airdrop, set to release over 700 million STRK tokens, equivalent to 10% of the total token supply.

The modifications resulted in disqualifications, including the rectification of over 900 ETH home validators and the distribution of over 6.9 million STRK to over 1,000 solo stakers.

Additionally, over 1 million STRK were set aside for potential future community allocation after addressing concerns about GitHub handle squatters.

Community Frustration Mounts

Numerous users expressed frustration, claiming they missed out on token distributions despite significant transactions and liquidity contributions to the network.

For instance, a user named "Umaykut" vented on Starknet's Discord, expressing disappointment at being ineligible despite substantial transactions and liquidity additions.

In response to the outcry, Starknet acknowledged the concerns and stated that it is working to address the issues. However, it emphasized that a comprehensive resolution necessitates time for research, design, and testing.

Despite these challenges, Starknet's total value locked (TVL) remains near all-time highs, reaching around $55.48 million.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].