Today, $PYTH daily tokens are unlocked. Pyth Network token $PYTH will unlock 2.13 billion tokens at 22:00 on May 20, worth about 812 million US dollars, accounting for 141.67% of the circulation. So is it really as we see it? Is it a fortune to short $PYTH now? I can only say that you think too much~

If you look closely at the token distribution in Tokenomics, you will find that there are mainly five different distribution objects.

First, the rewards for data publishers account for 22% of the total number of tokens, and these tokens are directly rewarded to data publishers. In the future, publishers may need to stake their PYTH tokens to continue to publish data. In this way, the community can also supervise the data publishers to a certain extent. Even if the publisher needs to unlock this part of the token to their account, they also need to stake it, so this part of the token will not have a significant impact on the market environment.

The second part, what we call ecological growth, accounts for 52% of the tokens, which is almost half of the tokens related to ecological growth. All incentive plans come from this part, including rewards for ecological contributors, such as data publishers and downstream institutional protocols. These incentive plans are gradual, and even if there are token unlocks, they will not be issued all at once.

Most of the tokens related to ecological growth are not issued to individuals, but to ecological builders or institutions. These participants have long-term cooperation plans, such as some DeFi protocols have been using Pyth services and receiving ecological growth rewards. In the future, they will also feed back to the use of Pyth through staking and other methods, so in theory there will be no pressure to sell a lot.

The other two parts include the tokens required for protocol development, accounting for 8.5% and the private sales part accounting for 10%. Even if a large part of the liquidity is about to be unlocked, I don’t think it will have a significant impact on the market due to the native demand behind these token allocations. Even if there is an impact, it is a long-term process, so it is not an issue we need to pay special attention to.

Overall, this is a gradual process. At the same time, since unlocking to circulation is a gradual process, not all unlocked tokens will flow into the market on May 20th. In fact, only a small part of them will enter the market at that time.Therefore, if you short at this moment, you may be able to take advantage of the momentary drop in the pin, but you must also be careful of the risk of the banker suddenly pulling you against the trend~

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