Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.
EigenLayer (EIGEN) Token Unlock:
As October begins, EigenLayer, a protocol for restaking on Ethereum, has listed its EIGEN token on major exchanges. On October 8, nearly 10 million EIGEN tokens will be unlocked, which is valued at $35.75 million at the time of writing. These tokens will be allocated for future community initiatives, making it less likely that the unlock will directly impact the token's price.
Optimism (OP) Token Unlock:
Optimism is a Layer-2 scaling solution that aims to enhance the speed and reduce the costs of transactions on the Ethereum mainnet. The OP token plays a vital role in the network's governance, enabling holders to participate in voting on proposals and decisions that shape the network's development and management.
On October 10, Optimism will be increasing its circulating supply by 8 million OP tokens. According to TokenUnlocks, the project will be utilizing these tokens for retroactive public goods funding.
Aptos (APT) Token Unlock:
Aptos is a Layer-1 blockchain that aims to provide a secure and scalable infrastructure for decentralized applications. With a focus on security and performance, it integrates innovative technologies to enhance the blockchain experience.
Despite being one of the most successful blockchain projects in recent times, Aptos has faced criticism from the crypto community for its tokenomics, which are heavily influenced by venture capital. A significant portion of APT tokens are still locked. On October 11, the project will be distributing 11.31 million APT tokens to community members, core contributors, and investors.
Other notable token cliff unlocks next week include Hashflow (HFT), Cardano (ADA), Ethena (ENA), Xai (XAI), and io.net (IO), with a total value exceeding $204 million. While many perceive token unlocks as bearish, a well-structured schedule can support a project's long-term success. Tied to key milestones and development, unlocks can serve to motivate the team, engage the community, and drive ecosystem growth.
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