The developer behind Worldcoin, Tools for Humanity (TFH), extended the lock-up period for WLD tokens allocated to team members and investors. This strategic decision altered the token distribution timeline, with 2 million tokens to be released daily starting from July 24, 2024. Initially, the schedule projected the daily release of 3.3 million tokens.
Significant Decision from the Worldcoin Team
The revised strategy aims to reduce market saturation and support token value. As a result, this adjustment was introduced to manage the token flow into the market and allow for a more measured increase in circulating supply.
Amid this development, the WLD price increased by 23% in the last 24 hours, indicating investor optimism. As of the time of writing, WLD is trading at $2.84 with a market cap of $784.9 million. However, the potential for selling pressure remains as the increased supply may encourage early investors to sell. HumaCapital shared the following statement on the matter:
“Following the news of the extended token lock-up period, WLD has taken a strong position.”
Extending the lock-up period for 80% of the tokens from three to five years aims to strengthen the stability of the Worldcoin ecosystem. The unlocking process will now span four years and conclude in July 2028, with the vesting schedule extended until 2029.
Details on the Matter
Worldcoin's tokenomics have faced scrutiny, particularly due to the low circulation rate. A CoinGecko report highlights that among the top 300 cryptocurrencies by market cap, Worldcoin exhibits the lowest circulation rate at 0.02. This low rate indicates limited tokens in circulation, potentially leading to increased volatility due to future token unlocks.
Nevertheless, Worldcoin continues to attract users to its network. Currently, over 6 million people possess a World ID verified by the orb. This digital passport verifies the user's humanity and facilitates access to the network. The allocation of WLD tokens to verified World ID holders remains unchanged, with over 211 million tokens claimed to date. This accounts for more than 77% of the circulating 275 million WLD.
