The team at Tools for Humanity (TFH), the developers behind Worldcoin, have made a significant decision to extend the lock-up period for WLD tokens allocated to team members and investors. This strategic move has resulted in a shift in the token distribution timeline, with 2 million tokens set to be released daily starting from July 24, 2024, as opposed to the initially planned 3.3 million tokens per day.
This revised strategy has been implemented in order to reduce market saturation and uphold the value of the token. By managing the flow of tokens into the market and enabling a more gradual increase in circulating supply, the team aims to support the stability of the Worldcoin ecosystem.
As a result of this development, investor optimism has been evident, with the WLD price increasing by 23% in the past 24 hours. At the time of writing, WLD is trading at $2.84 with a market cap of $784.9 million. However, there is a possibility of selling pressure due to the increased supply potentially encouraging early investors to sell.
HumaCapital has issued a statement regarding this matter, highlighting the extension of the lock-up period for 80% of the tokens from three to five years. This move is intended to strengthen the stability of the Worldcoin ecosystem, with the unlocking process now spanning four years and concluding in July 2028, and the vesting schedule extended until 2029.
Worldcoin’s tokenomics have come under scrutiny, particularly due to the low circulation rate. A CoinGecko report indicates that Worldcoin has the lowest circulation rate among the top 300 cryptocurrencies by market cap, at 0.02. This low rate suggests a limited number of tokens in circulation, which could potentially lead to increased volatility when more tokens are unlocked in the future.
Despite this, Worldcoin continues to attract users to its network, with over 6 million individuals currently possessing a World ID verified by the orb. This digital passport verifies the user’s humanity and provides access to the network. The allocation of WLD tokens to verified World ID holders remains unchanged, with over 211 million tokens claimed so far, accounting for more than 77% of the circulating 275 million WLD tokens.
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Disclaimer: The information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and are encouraged to conduct their own research.