- Worldcoin Foundation announced an extension of the lock-up period for WLD tokens held by Tools for Humanity (TFH) investors and team members from three years to five years.
- This adjustment impacts approximately 80% of the WLD tokens held by these groups.
- The extension is intended to promote the protocol’s maturation before the tokens are introduced into the circulating supply.
Worldcoin extends WLD token lock-up period to 5 years, ensuring protocol maturity and market stability.
Worldcoin’s Strategic Decision to Delay Token Release
In a noteworthy move, Worldcoin Foundation has extended the lock-up period for WLD tokens from three to five years. This extension affects the vast majority of WLD tokens held by investors and team members of Tools for Humanity (TFH), around 80% to be precise. The decision comes as part of a broader strategy to ensure the protocol has sufficient time to mature and stabilize before these tokens enter the circulating supply.
Early Contributions and Development
TFH, having been a significant early contributor to Worldcoin, has played a crucial role in its initial development and continues to support the Worldcoin Foundation. TFH is also responsible for operating the World App, the first wallet compatible with Worldcoin. The WLD tokens were allocated to TFH’s investors, team members, advisors, and other service providers as recognition for their contributions since the company’s inception in 2019. These tokens were initially locked to allow the protocol to mature before being accessible.
Revised Unlocking Schedule for WLD Tokens
Originally, the plan entailed a three-year lock-up period post the launch of the Worldcoin protocol on July 24, 2023, with the first year prohibiting any transfers. Following this, the unlock process was set to occur daily and linearly over the subsequent two years, concluding by the end of July 2026. However, the recent decision modifies this schedule. Now, about 80% of TFH’s WLD tokens will be released gradually over four years, effectively extending the lock-up period until late July 2028.
Market Implications and Price Surge
The market reacted positively to this development, with a significant surge in the price of WLD tokens. The extension is perceived favorably by the market as it reduces the imminent supply pressure, thus providing a more stable environment for the token’s value to appreciate. By spacing out the token release, Worldcoin aims to mitigate potential volatility and enhance investor confidence in the protocol’s long-term prospects.
Conclusion
The extension of the WLD token lock-up period by Worldcoin reflects a strategic approach to bolster the protocol’s maturation and market stability. By pushing back the timeline for when a significant portion of WLD tokens will enter circulation, Worldcoin aims to foster a more measured and sustained growth trajectory. This move underscores the foundation’s commitment to ensuring the project’s long-term success and resilience in the dynamic crypto landscape.
