Starknet Airdrop Stir: Equity Concerns Rise

John Darbie
Photo: Finoracle.net

Anticipated Starknet Airdrop Attracts Attention from Airdrop Farmers

An upcoming airdrop from Ethereum's layer-2 scaling solution, Starknet, is expected to see a significant influx of airdrop farmers. On February 15th, a developer from Yearn Finance revealed that a staggering 1,854 individuals purportedly altered or erased their Starknet addresses following a snapshot taken for the forthcoming airdrop distribution.

Starknet Foundation's Airdrop Plans

The Starknet Foundation has scheduled an airdrop of 728 million STRK tokens to be distributed among 1.3 million wallet addresses on February 20th. However, there are concerns that farmers may be manipulating the system, as over 1,100 of the renamed addresses share the same historical GitHub IDs. This phenomenon suggests that these addresses may be under the control of farmers. If these addresses are excluded, it could lead to a reduction of over 700,000 eligible wallets for the airdrop.

Airdrop Farmers and their Strategies

Airdrop farmers employ scripts that enable them to consolidate tokens into a small number of wallets, with the intention of selling them at a later date for a profit. This practice poses a challenge to the fairness and equitable distribution of the airdrop.

Starknet's Background and Participation

Launched in December 2022, Starknet is currently valued at $55 million in total value locked, with Nostra, a decentralized finance protocol, contributing 30% of this amount. The airdrop aims to benefit Ethereum stakers, Starknet developers/users, and Web3 projects. However, citizens from countries such as the US, UK, and those under sanctions will not be able to participate in the airdrop.

Challenges for Equitable Distribution

With the potential for a significant influence from airdrop farmers, there are concerns about how fair the distribution of the airdrop will be. The dominance of farmers may impact the intended benefits for other participants, and it remains to be seen how equitable the distribution will ultimately be.

Analyst comment

Positive news: The anticipated airdrop from Ethereum layer-2 scaling solution Starknet has generated significant participation from airdrop farmers.

Short analysis: The market may experience volatility as a result of the airdrop, with potential selling pressure from farmers who consolidate tokens. However, the distribution may not be equitable due to potential farmer domination, which could impact the value and perception of the tokens.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.