- The Worldcoin project, led by Sam Altman of OpenAI, is set to unlock tokens for early contributors on July 24.
- The project has also extended the unlock period for 80% of the tokens held by team members from 3 years to 5 years.
- “As the figure shows, the extended unlock schedule has the effect of slowing the increase in circulating supply,” notes Worldcoin.
Worldcoin announces changes to token unlock schedule, causing a surge in WLD price by over 30% in 24 hours. Dive into the details and impact of this development.
Significant Extension in Token Unlock Period
Worldcoin has recently made a crucial update to its token unlock schedule by extending the vesting period for 80% of its tokens held by team members from three to five years. This extension aims to promote long-term project stability and commitment, and it appears to have been received positively by the market. Within a short span of 24 hours, the Worldcoin token (WLD) experienced a price surge of over 30%, now trading at $2.67. This uptick marks a significant recovery from a recent slump where the token price had dropped below $2.
Details of Token Distribution
Worldcoin employs a unique method for distributing its tokens, which involves a human verification process. In this process, individuals are assigned World IDs after their irises are scanned by a device known as the orb. Despite some privacy concerns and reported deletions of data, over 211 million WLD tokens have been claimed by verified World ID holders, representing more than 77% of the current supply of 275 million WLD tokens. The initiative is driven by Tools for Humanity, led by CEO Alex Blania, as a pioneering effort to integrate advanced technology with cryptocurrency incentives.
Upcoming Token Releases and Circulating Supply Management
Starting on July 24, 2024, investors and team members of Tools for Humanity (TFH) will receive their first distributions of WLD tokens. This rollout will see approximately 2 million WLD tokens being unlocked daily. Worldcoin’s latest announcement indicates that this extension reduces the daily unlocked amount by 40% from the originally planned 3.3 million WLD per day. By controlling the release schedule, the company aims to mitigate market disruptions and contribute to community initiatives. Notably, the World Assets fund holds an extensive 7.22 billion WLD designated for this purpose.
Addressing Regulatory Challenges
Despite positive strides, Worldcoin continues to grapple with regulatory scrutiny, particularly regarding privacy. Recently, the project was forced to halt its operation in Spain until at least the end of 2024 due to an ongoing investigation by the Spanish Agency for Data Protection (AEPD). Similarly, Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) had earlier issued an order to cease operations in the region. These regulatory hurdles highlight the ongoing challenges that Worldcoin must navigate as it evolves.
Conclusion
Worldcoin’s strategic extension of its token unlock schedule appears to be a tactical move aimed at ensuring the project’s long-term stability and success. While the market has reacted positively, evident in the impressive 30% price surge, the project must continue to address regulatory concerns to maintain trust and compliance. As Worldcoin maneuvers through these phases, its ability to blend advanced technology with its cryptocurrency framework will be pivotal in shaping its future trajectory.
