Projects typically plan token unlocks strategically, involving the release of tokens that were previously locked up as per fundraising agreements. This helps mitigate market pressure and prevents a sudden decrease in token prices.
1.)Optimism (OP):
On May 31, 31.34 million OP tokens will be unlocked, affecting the current circulating supply, which is 1.08 billion OP tokens.
The OP token gives holders governance rights in Optimism’s ecosystem, allowing them to vote on proposals and decisions that affect the network’s development and management. Optimism, a Layer-2 scaling solution, aims to boost transaction speed and cut costs on the Ethereum mainnet. TokenUnlocks indicates that the distribution will assign these tokens to investors and core contributors.
2.)1inch (1INCH):
On June 1, 98.7 million 1INCH tokens will be unlocked, impacting the current circulating supply, which stands at 1.15 billion 1INCH tokens. 1inch aims to optimize and simplify trading by finding the most efficient transaction routes, minimizing slippage, and reducing trading fees. It is a decentralized exchange aggregator that sources liquidity from various DEXs to provide users with the best possible trading rates.
The release will include nearly 100 million tokens, earmarked for developers, early investors, and venture capital funds.
3.)dYdX (DYDX):
On June 1, 33.33 million DYDX tokens will be unlocked, affecting the current circulating supply, which is 279.8 million DYDX tokens.
In early 2023, dYdX, the largest decentralized perpetual futures trading protocol, announced changes to its initial tokenomics. According to the update, 27.7% of dYdX’s total supply will go to early investors, 26.1% to the treasury, 15.3% to the team, and 7.0% to future dYdX employees and consultants. Most DYDX unlocked on June 1 will be distributed among investors and the project team, with the remaining tokens reserved for future employees.
4.)Sui (SUI):
On June 1, 65.08 million SUI tokens will be unlocked, impacting the current circulating supply, which stands at 2.33 billion SUI tokens.
Sui is a high-performance Layer-1 blockchain developed by Mysten Labs, founded in 2021 by former Novi Research employees, creators of the Diem blockchain and the Move programming language. It utilizes a Proof-of-Stake consensus algorithm to ensure network operation and security.
5.)Ethena (ENA):
On June 1, 53.6 million ENA tokens will be unlocked, affecting the current circulating supply, which stands at 1.47 billion ENA tokens.
Ethena, built on Ethereum, is a synthetic currency protocol providing a native cryptocurrency solution independent of traditional banking. It also offers global users the ‘Internet Bond,’ a dollar-denominated savings instrument.
While token unlocks are commonly viewed as bearish, a thoughtfully designed schedule can actually bolster a project’s long-term sustainability. Timed in accordance with milestones and development achievements, unlocks can inspire team members, foster community involvement, and stimulate ecosystem expansion.