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Worldcoin WLD Price Increases in Recent Days Despite Upcoming Increases in Daily Token Unlocks
WLD’s recent price action comes as Tools for Humanity, a software company developing Worldcoin, has hired executives from major traditional tech companies such as X, Google, Apple, Meta, and Tesla.
According to data from blockchain research firm Messari, $237 million worth of WLD tokens were unlocked in the previous 30 days, and $314 million will be unlocked in the next 30 days.
(Shutterstock/T. Schneider)
Published on July 3, 2024 at 5:07 PM EST.
The price of WLD, the governance token for the Worldcoin protocol founded by OpenAI CEO Sam Altman, reversed the overall downward trend after Tools for Humanity, a software company developing Worldcoin, announced its recent executive hires from major tech companies such as X, Google, Apple, Meta, and Tesla.
While WLD has declined by 48.8% over the past 30 days, Worldcoin’s governance token surged from a low of $2.19 to a high of $2.52 on Wednesday, up 15%, before settling at $2.37 at press time, bringing its market cap to $620 million, according to CoinGecko.
However, the 24-hour jump in WLD’s price comes just weeks before the start of a surge in daily token unlocks. Data from blockchain research firm Messari shows that Worldcoin’s daily unlocks currently stand at 3.19 million WLD, worth about $7.91 million, but by July 24, 2024, that figure is set to more than double to 6.61 million WLD tokens, worth about $16.39 million per day.
Token unlocks, similar to equity vesting programs for traditional companies, refer to the gradual release of cryptocurrencies that were previously frozen or restricted to prevent large-scale selling during the early stages of a project. Token unlocks free up liquidity and are widely associated with bearish sentiment as a result of the increased availability of these coins.
To know more: Worldcoin Token Could Become Hyperinflationary in 70 Days, Crypto Trader Says
Unlocks for Tools for Humanity and Initial Development Team
Second Worldcoin Tokenomics As stated in the whitepaper, daily token unlocks for various entities, such as Tools For Humanity’s initial development team and investors, are scheduled to occur 12 months after the protocol’s launch, which is scheduled for July 24, 2023.
“Tokens that have already been allocated to past and current team members will be contractually locked for 12 months after launch and will then be unlocked on a daily basis evenly over the next 24 months,” the whitepaper reads. States on tokens assigned to the initial development team.
According to Messari, Tools for Humanity investors and its reserve will collectively receive 2.07 million tokens per day, worth approximately $5.16 million, while the initial development team will pocket 1.34 million WLD, approximately $3.32 million.
In the previous 30 days, $237 million of WLD was released, and $314 million will be released in the next 30 days.
To know more: Worldcoin Adds Privacy Features as Regulators Crack Down on Project
According to Worldcoin’s whitepaper, an unlocked supply of a token refers to cryptocurrencies that are either part of the circulating supply and have no particular transfer restrictions, or are unlocked but “subject to protocol governance discretion as to their rate of release into the circulating supply.”
