Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.
Here are five major token unlocks to keep an eye on next week.
Celestia (TIA)
Unlock date: October 30
Number of tokens unlocked: 175.59 million TIA
Current circulating supply: 220.16 million TIA
Celestia, a modular data availability network, simplifies blockchain launches. On October 30, Celestia will unlock 175.56 million TIA tokens, valued at $920 million, and allocate these coins to early backers and initial core contributors. This massive unlock has sparked concerns about potential selling pressure.
“While some argue for a “bullish unlock” due to OTC activities, simple market dynamics tell a different story. The tokenomics design shows concerning flaws that can’t be ignored. TIA has potential for 3-digits IF the tokenomics weren’t so manipulated. But with VCs having such enormous profit margins and this aggressive unlock structure, we’re looking at significant downward pressure,” one X user wrote.
Read more: What Is Blockchain and How Does it Work?
Optimism (OP)
Unlock date: October 31
Number of tokens unlocked: 31.34 million OP
Current circulating supply: 1.25 billion OP
Optimism is a Layer-2 scaling solution designed to improve the speed and lower the costs of transactions on the Ethereum mainnet. The OP token plays a crucial role in governance, allowing holders to vote on proposals and decisions that shape the network’s development and management.
On October 31, Optimism will increase its circulating supply by 31.34 million OP. According to Tokenomist (formerly TokenUnlocks), the project will allocate these tokens to core contributors and investors.
Read more: Optimism vs. Arbitrum: Ethereum Layer-2 Rollups Compared
Sui (SUI)
Unlock date: November 1
Number of tokens unlocked: 64.19 million SUI
Current circulating supply: 2.76 billion SUI
Sui is a high-performance Layer-1 blockchain that utilizes a Proof-of-Stake consensus to increase network operation and security. The project was developed by Mysten Labs, a company founded in 2021 by former Novi Research employees who created the Diem blockchain and the Move programming language.
The SUI token facilitates governance, enabling token holders to vote on important proposals and shape the platform’s future. The next unlock will happen on November 1, releasing a large portion of tokens set aside for Series A and B participants, community reserve, and the Mysten Labs treasury.
Read more: A Guide to the 10 Best Sui (SUI) Wallets in 2024
Immutable (IMX)
Unlock date: November 1
Number of tokens unlocked: 32.47 million IMX
Current circulating supply: 1.63 billion IMX
Immutable is a Layer-2 solution for scaling NFTs on the Ethereum blockchain. In September 2021, the project raised $12.5 million during the IMX token sale on the CoinList platform in just one hour. In March 2022, it closed a $60 million investment round and secured an additional $200 million from investors, including ParaFi Capital, Declaration Partners, and Tencent Holdings.
On November 1, the circulating supply of IMX will increase by 32.47 million tokens. These newly unlocked coins will be allocated to the development of the project and the broader Immutable ecosystem.
Read more: What Is Immutable?
ZetaChain (ZETA)
Unlock date: November 1
Number of tokens unlocked: 53.89 million ZETA
Current circulating supply: 459.59 million ZETA
ZetaChain is a decentralized blockchain platform that enables seamless interoperability across various blockchain networks. One of its main features is cross-chain communication, which allows for the exchange of tokens and data between different blockchains, such as Ethereum and Binance Smart Chain.
On November 1, it will unlock nearly 54 million ZETA tokens. The newly released coins will be allocated across several initiatives, including a user growth pool, an ecosystem growth fund, support for core contributors, advisory roles, and liquidity incentives.
Read more: What Is Blockchain Interoperability?
Next week’s smaller cliff unlocks include dYdX (DYDX), Galxe (GAL), Cardano (ADA), and Ethena (ENA), among others, with a combined value surpassing $1.24 billion.
While many see token unlocks as bearish, a well-structured schedule can actually support a project’s long-term success. Tied to key milestones and development, unlocks can motivate the team, engage the community, and drive ecosystem growth.
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