Crypto News- The dYdX cryptocurrency is gearing up for a significant boost as its native token’s unlocked supply is set to surge by 33.33 million tokens by Friday, according to data from blockchain intelligence platform Messari. This impending release is estimated to be worth approximately $116 million.
Divvying up the newly unlocked tokens, investors are in line to receive the lion’s share, with 18.48 million DYDX tokens allocated to them. The team will be granted 10.18 million tokens, while 4.66 million are earmarked for future employees, as reported by both Messari and TokenUnlocks, a tokenomics dashboard.
DYDX’s Token Release: 33.33 Million Tokens Unlocked, Estimated 116 Million Dollars Boost
dYdX, renowned for its perpetual trading, routinely conducts token unlocks. In January, for instance, approximately 41 million tokens (equivalent to about $142 million) were released, followed by roughly 158 million tokens worth about $545 million in December, as per Messari.
Token locking mechanisms are commonly employed across various blockchain protocols to curb significant selling during initial project phases, preventing a flood of tokens into the open market. This practice mirrors traditional finance, where shares are locked or vested to achieve similar goals.
Why Token Locking Matters: Understanding Its Role in Crypto Dynamics
Token unlocks involve gradually releasing previously restricted tokens into circulation, affording holders such as early team members and investors the freedom to utilize their tokens as needed, be it for selling on the market or engaging in decentralized finance protocols.
While token unlocking events typically exert downward pressure on a cryptocurrency’s price, DYDX has defied this trend, posting a 1.6% increase in the past 24 hours and nearly 12% over the past week, reaching $3.48 at press time, according to CoinGecko.
Holders of DYDX, the native token of the eponymous crypto exchange, not only partake in the governance process but also have the opportunity to stake their tokens, contributing to the security of the network’s consensus process.
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