The team behind Worldcoin, Tools for Humanity (TFH), has 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 change to the token distribution timeline, with 2 million tokens now being released daily starting from July 24, 2024. Previously, the schedule had projected the daily release of 3.3 million tokens.
The goal of this revised strategy is to reduce market saturation and support the value of the tokens. By managing the flow of tokens into the market and allowing for a more controlled increase in circulating supply, TFH hopes to create a more stable and sustainable ecosystem for Worldcoin. This decision has been made in order to ensure the long-term success of the project.
In response to this development, the price of WLD has increased by 23% in the last 24 hours, indicating a positive sentiment among investors. At the time of writing, WLD is trading at $2.84 with a market capitalization of $784.9 million. However, it is important to note that there may still be selling pressure as early investors may choose to sell their tokens due to the increased supply.
HumaCapital, a key player in the Worldcoin ecosystem, has expressed their support for the decision to extend the lock-up period. They believe that this will strengthen the stability of the ecosystem and contribute to the long-term success of Worldcoin. The unlocking process will now span four years, concluding in July 2028, with the vesting schedule extended until 2029.
Worldcoin’s tokenomics have faced scrutiny, particularly due to the low circulation rate. According to a report by CoinGecko, Worldcoin has the lowest circulation rate among the top 300 cryptocurrencies by market cap, at 0.02. This low rate indicates that there are limited 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. Currently, over 6 million people possess a World ID that has been verified by the orb. This digital passport verifies the user’s humanity and grants them access to the network. The allocation of WLD tokens to verified World ID holders remains unchanged, with over 211 million tokens claimed so far. This accounts for more than 77% of the circulating 275 million WLD tokens.
It is important to note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research before making any investment decisions.
