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Starknet User Engagement Drops Due to a Discontent Over an Airdrop

Starknet experiences a sharp dip in user engagement

Starknet has recently encountered a notable downturn in its user activity. The Ethereum layer-2 network, renowned for its scalability solutions, witnessed a meteoric rise in active users from just under 20,000 on February 9 to over 220,500 by February 14, according to Starkscan data. This surge, driven by users and airdrop farmers eager for an allocation in the Starknet Provisions Program airdrop, showcased the network's potential for rapid growth.

However, the enthusiasm was short-lived. Following the announcement of the airdrop details slated for February 20, Starknet's active user base experienced a steep decline, plummeting to just over 84,000 by February 19, nearly reverting to its pre-announcement levels. 

This significant drop highlights the community's growing dissatisfaction, particularly with the airdrop criteria that excluded users holding less than 0.005 Ether (ETH) in their accounts on November 15, 2023 — a sum valued at approximately $10 at the time — from the token distributions.

The discontent among Starknet's users stems not only from the exclusion based on wallet holdings but also from the perceived inequity in the token unlock schedule. Starknet plans to reward its investors and early contributors with 1.3 billion STRK — about 13% of the total supply — by April 15, merely two months post-launch. This move has sparked further debate within the community, contrasting sharply with the 700 million STRK — roughly 10% of the total supply — set for distribution on February 20.

User concerns and network response

The Starknet community's grievances extend beyond mere numbers, touching upon deeper issues of fairness and inclusion. Users who found themselves ineligible for the airdrop due to holding less than the minimum required 0.005 ETH in their wallets voiced their frustrations, feeling overlooked despite their active contributions to the network. This sentiment was echoed across various platforms, with multiple network users on X and the project’s Discord expressing disappointment at missing out on token distributions despite having executed transactions and added liquidity worth thousands of dollars.

In response to the mounting dissatisfaction, Starknet took to X on February 19, acknowledging the community's concerns. The network stated, and assured that efforts were underway to address these issues: 

"We have seen the feedback that some network users have been left out due to certain Provisions criteria," 

However, Starknet also emphasized the complexity of the situation, noting that finding a resolution "requires time to research, design and test," signaling that any potential changes to the airdrop criteria or token distribution plans would not be immediate.

Despite these challenges, Starknet remains a formidable player in the blockchain space. As of February 14, the network boasted a total value locked (TVL) of $54.18 million, a slight decrease from its all-time high of $57.5 million. This resilience in TVL, even amidst user dissatisfaction and a drop in active accounts, underscores the underlying strength and potential of Starknet's technology and its community's commitment.