The initiative will see the top holders of $XDEFI tokens, lock their tokens for a one-year period.
Decentralized self-custody crypto wallet Ctrl Wallet announces a major liquidity initiative to enhance participation within its ecosystem. The initiative will see the top holders of $XDEFI (Ctrl’s native token) lock their tokens for a 12-month period into AMM liquidity pools on Uniswap. This adds up to 76.9 million of the circulating liquidity of the $XDEFI token or 32% of the total supply.
The announcement also confirmed new tokenomics updates including an updated unlock schedule for the deposited tokens and new revenue-generating features on Ctrl Wallet.
Emile Dubié, CEO and co-founder of Ctrl Wallet believes the initiative shows the “strong commitment and belief” the largest investors and holders of $XDEFI have in the project.
“This initiative demonstrates the unwavering belief we have in Ctrl’s potential,” added Emile. “By committing such a significant portion of tokens to liquidity provision, we are not only supporting the token’s stability but also laying the groundwork for future growth.”
$XDEFI Holders Agree To 1-Year Token Locks
As alluded to, the top token holders of $XDEFI agreed to provide liquidity to Uniswap AMM pools with 76.9 million tokens to facilitate the DeFi ecosystem. This amounts to 50% of the current circulating supply or 32% of the total $XDEFI circulating, as of writing.
Top holders of the utility token include Ctrl Wallet’s largest investors, including Delphi Digital, Mechanism Capital and Morningstar Ventures, in addition to its two co-founders and the company’s treasury.
The self-custody crypto wallet serving over 2,100 blockchain networks aims to reduce price volatility, increase trading depth, and attract new investors to the ecosystem. Additionally, the year-long commitment will significantly deepen liquidity, incentivize long-term participation in the project and reduce potential sell pressure.
The tokens will be held starting September 2024 till September 2025.
$XDEFI’s New Token Unlock Schedule And Features
The announcement also confirmed the new unlock schedule, six months following the lock-in in March 2025. The unlock is a milestone-based withdrawal schedule in quarters. The first quarter will be unlocked after March 2025 once $XDEFI reaches a US$100M fully diluted valuation (FDV), with another quarter released at US$200M FDV, and a quarter at US$300M FDV, and the final quarter when $XDEFI reaches US$500M FDV.
To incentivize maintaining liquidity even as milestones are met, contributors – excluding the project treasury – will receive a 10% APY on their deposited tokens.
The liquidity provision commitments were made two months following the announcement of the planned migration from $XDEFI to $CTRL, set to be completed in the coming weeks and the beta access launch, earlier this month. This rebranding effort will be accompanied by a shift to a buy-and-burn model, with 75% of all revenue generated in Ctrl Wallet used to purchase $CTRL tokens on the open market, which will then be burned.
Notwithstanding, Ctrl Wallet also announced new revenue-generating features including in-wallet quests, a launchpad, and expanded Gas Tank functionality. Such additions are expected to drive increased usage and revenue, directly benefiting $CTRL token-holders through the buy-and-burn mechanism.
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