Similar to numerous other cryptocurrency projects, the native token of the Polygon network, MATIC, underwent a gradual release of its supply to the team over a specified timeframe. In the case of Polygon, this vesting period spanned five years, commencing in 2019, and featured periodic token unlocks. However, these unlocks, which had previously acted as a deterrent for investors, have concluded with the recent release of the final batch to the team.
Polygon's Last Token Unlock Goes to Team
On February 21, the Polygon Foundation received the ultimate portion of their vested tokens from the vesting contract. This release amounted to 273,304,816 million MATIC tokens, valued at $260 million, and was deposited into the Foundation's wallet.
This marks the conclusive token unlock for the Foundation, signifying that nearly the entire MATIC supply is now in circulation. The latest release brings the circulating supply to 9,618,318,574 out of its 10,000,000,000 maximum supply. Consequently, Polygon's market cap stands slightly above $9.14 billion, with a fully diluted valuation (FDV) of approximately $5 billion.
With the entirety of the MATIC supply now accessible, there will be no further tokens introduced into circulation. This achievement is a significant milestone for the project, as investors have patiently awaited the depletion of the vested token supply.
Impact on MATIC Price
The complete circulation of the MATIC supply is viewed as a bullish development for the digital asset, particularly in the long term. The removal of the fear of inflation-driven supply increases often deters investors from holding their coins, creating a more favorable environment for the MATIC price to enter into price discovery.
