Is the Short Team Lockup for STRK ‘Misaligned’? No, Says Starkware CEO - Ep. 609
Feb 16, 2024
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Starkware CEO Eli Ben-Sasson addresses the criticism of the Starknet airdrop and explains the reasoning behind the criteria. Topics discussed include the airdrop allocation, rewards distribution within the ecosystem, and the unlock date of the tokens. The episode also touches on the challenges of decentralization and the importance of bringing more people into Web3.
The Starkware Foundation faced heavy criticism for the details of their airdrop, including the allocation of almost 22% of the distribution to Ethereum solo stakers, which led to accusations of favoring individuals with higher financial resources and technical capabilities.
The decision to exclude US citizens and residents from the airdrop generated controversy and speculation, potentially due to regulatory uncertainty.
Deep dives
The Reaction to the Airdrop Plan
The community's response to the Starquare Foundation's Airdrop plan was negative. Some community members felt excluded or unfairly treated.
Criteria for Airdrop Qualification
The Airdrop criteria included being a user of Starquare and an Ethereum staker, as well as involvement in the Stark technology and Ethereum contribution. GitHub developers were also invited to participate. The foundation aimed to include individuals who are passionate about advancing and maintaining a decentralized network like Starknet.
Controversial Allocation to Solo Stakers
The allocation of almost 22% of the Airdrop to Ethereum solo stakers was met with mixed reactions. Some praised it, while others criticized it for favoring individuals with higher financial resources and technical capabilities.
Exclusion of US Citizens and Residents
The decision to exclude US citizens and residents from the Airdrop sparked controversy. While the exact reason for this exclusion was not specified, it is speculated that regulatory uncertainty may have played a role.
Starknet made news this week for announcing what will be the largest initial airdrop by number of eligible addresses ever. But it faced heavy criticism online for many of the details of the airdrop, from the fact that Ethereum solo takers received almost 22% of the distribution to eligibility requirements that users held at least 0.005 ETH in their wallets as of Nov. 15, 2023 to the fact that the token generation event took place almost two years before the unlock date.
Starkware CEO Eli Ben-Sasson joined Unchained to respond to the multiple critiques of the airdrop and discuss why he and the Starknet Foundation decided on the details that they did.
Show highlights:
What the airdrop criteria was and why they decided to make it that way
Why they allocated so much $STRK to Ethereum solo stakers
Eli’s response to the criticism about how little Starknet network participants got in the airdrop
Why the STRK Token Generation Event (TGE) was done in 2022, only to be airdropped two years later
Why Eli believes that even if the unlock of tokens is in two months, it does not indicate misalignment of incentives
Whether Eli will sell his tokens when they become unvested