dYdX corrects token unlocking schedule – price jumps 20 percent
Originally posted here.
By: Stephan Fiedler
dYdX as a token of the decentralized crypto exchange of the same name has changed its unlocking schedule at an important point, giving the price […]
dYdX as a token of the decentralized crypto exchange of the same name has changed its unlocking schedule at an important point, giving the price curve a daily increase of 20 percent. Find the details here.
dYdX has had a good day with a 20 percent gain in the price curve, which can be attributed to a not uncontroversial token distribution decision. That’s because when dYdX published an announcement on the matter yesterday (Wednesday), the price immediately rallied. To understand the dynamics, you have to go a little deeper into the so-called tokenomics at dYdX.
When the altcoin made its debut in September 2021, only a limited amount of the total 1 billion dYdX had hit the market, as is quite common. Allocations to early investors, employees, and the dYdX Foundation were mostly time-locked, which would not allow resale until February 3, 2023. Thus, dYdX was now faced with the situation that in the coming week, another 150 million dYdX would be released for trading in one fell swoop in addition to the approximately 150 million tokens already circulating. This would probably have been accompanied by price pressure due to sell-offs. So an agreement was reached with early investors to move the date for the sale authorization of dYdY to December 1, 2023, and also then to proceed in stages, which will extend until June 2026.
As a result, a maximum of 67 million dYdX will now be newly authorized for sale as of Feb. 3. According to the foundation, individual co-founders, team members and dYdX itself have also committed to accept the revised schedule. However, more detailed information is lacking here, in this respect the 67 million tokens raised is a maximum. On the side of the early investors, 83 million dYdX are affected by the agreement on a new schedule. In general, it is probably also hoped that the mood on the crypto markets has improved again in December and token inflows from dYdX will be better received than currently expected.
Conclusion: dYdX supports price with daring maneuver
On Twitter , surprise prevails that dYdX achieved approval from early investors for its intervention in timelines. But the short-term effect on dYdX’s price curve suggests market acceptance. dYdX is currently in the process of revamping its technology base. Thus, a retreaded dYdX could be a reality as early as December, when massive amounts of new tokens predictably enter circulation.