The unlock of 150 million dYdX tokens scheduled for next month has been reduced whereas 83 million tokens allocated to investors, employees and consultants will remain blocked until December.
The decentralized exchange dYdX announced, through the dYdX Foundationthe postponement of an unlock consequent of its native token. Indeed, approximately 150 million tokens belonging to early investors, consultants and members of the founding team of dYdX should have been released on February 3. Finally, more than half of the tokens will remain blocked for almost another year, after decision of the dYdX Foundation and of “certain parties to token purchase mandates.
From now on, 83 million of these tokens allocated to investors will be released on December 1thereby reducing the expected increase in the token’s supply in the coming days.
What impact on the price of the DYDX token?
The response in the market was immediate and the token $DYDX jumped from more than 30% after the announcement. The token was lately trading around the $2.13an increase of 16%, even after the retracement.
Indeed, token unlock events are generally seen as harbingers of a strong fall prices, especially in the market for crypto currencies. Investors then tend to bet down on tokens about to go through major release phases. The fact that the “bearish” event was postponed therefore obviously propelled the price of the token up in a very short time.
Many members of the community then shouted at insider trading. Indeed, the price of the token DYDX had already experienced increase of nearly 45% just a few days before the announcement the postponement of the unlock, which seemed to go completely against the tide of forecasts.
Learn more: Post listing token dump: Coinbase accuses Binance of insider trading
As a reminder, DYDX is a governance token set up to align incentives between traders, liquidity providers and dYdX partners all in a complete ecosystem combining rewards, staking and governance.
A total of 1 billion of $DYDX have been mint and scheduled to be deployed over 5 years.
The distribution of the total supply of $DYDX is as follows:
- 50% or 500,000,000 to the community as follows:
25.00% or 250,000,000 to users who trade on the DEXbased on a combination of fees paid and open interest.
7.50% or 75,000,000 to former users who pass certain trading milestones.
7.50% or 75,000,000 to liquidity providers based on a formula rewarding a combination of uptime, bilateral depth, bid/ask spreads and number of markets supported.
5% or 50,000,000 to a community treasury.
2.5% or 25,000,000 to users who stake $USDC.
2.5% or 25,000,000 for users who stake $DYDX.
- 27.73% or 277,295,070 tokens reserved for former dYdX Trading investors
- 15.27% or 152,704,930 Tokens for Founders, Employees, Advisors and Consultants of dYdX Trading or the Foundation
- 7% or 70,000,000 to future employees and consultants of dYdX Trading or the Foundation
A rate ofinflation perpetual max of 2% per year will increase the supply by $DYDX at the end of the 5 years, which will allow the community to have the resources necessary to continue contributing to the protocol.
The article DYDX Token Soars as Unlock Pushed to December appeared first on Corner Academy