Worldcoin (WLD) Extends Token Lock-Up Period, Triggers 23% Price Jump
- PHPzOriginal
- 2024-07-18 21:30:311079browse
Tools for Humanity (TFH), the developer behind Worldcoin, has extended the lock-up period for WLD tokens allocated to team members and investors.
Worldcoin, a global identity and financial network, has announced a significant change to its token distribution strategy.
According to a press release shared with CoinChapter, Tools for Humanity (TFH), the developer behind Worldcoin, has extended the lock-up period for WLD tokens allocated to team members and investors.
Starting July 24, 2 million WLD tokens will be unlocked daily, down from the originally planned 3.3 million tokens.
Following the token release news, the WLD token price jumped by 23% within 24 hours.
New Unlock Schedule Extends to July 2028
The new unlock schedule will span four years, concluding in July 2028, with the vesting schedule extending to 2029. This represents an extension from the initial three-year plan, now stretched to five years for 80% of the tokens.
The initial development team will receive approximately 1.34 million WLD tokens daily, while investors in Tools for Humanity will be allocated around 2.07 million tokens each day.
Vincent Maliepaard, Marketing Director at IntoTheBlock, highlighted the importance of unlock schedules in cryptocurrency markets.
“Token unlocks, whether linear or cliff, play a crucial role in asset prices. Linear tends to diffuse market impact over time, while cliff unlocks can cause abrupt shifts.
Verified World ID holders have claimed over 211 million WLD tokens to date, accounting for more than 77% of the 275 million WLD in circulation. The Worldcoin Foundation has assured that these grants for verified World ID holders remain unaffected by the recent changes.
Worldcoin’s tokenomics have faced scrutiny, particularly concerning its low float ratio. A CoinGecko report highlighted that among the top 300 cryptocurrencies by market capitalization, Worldcoin exhibits the lowest float ratio at 0.02.
This low ratio suggests limited tokens are available in circulation, potentially leading to heightened volatility due to future token unlocks.
WLD Token’s Price Surged 44% Following The News
Worldcoin’s decision to adjust token distribution comes as the project experiences rapid growth. With over 5 million orb-verified users across 160 countries, the demand for Worldcoin’s services is on the rise.
The increased token release is designed to meet this growing demand and further expand the project’s user base.
However, the imminent surge in token supply has raised concerns about potential downward pressure on WLD’s market price. Over the past month, WLD has already seen a 55% decline in value.
Following the revised tokn news, WLD price surged over 44% within 24 hours. At the time of this writing, WLD is trading at $2.84, with market capitalization of $784.9 million.
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