DYdX, a decentralized derivatives exchange, has announced a postponement of the “Initial Unlock Date” of its $DYDX token. While earlier scheduled to be unlocked on February 3, the new DYDX token unlocking date reportedly is December 1, 2023. dYdX token’s native DYDX token’s unlocking postponement in question is for the investors, per the dYdX blog announcement.
DYdX states, the transfer restriction schedule applicable to the $DYDX Tokens issued in connection with the Warrants (the “Tokens”) has been extended, including by postponing the initial release date (the “Initial Unlock Date”) to December 1, 2023 for all investors that are a party to the Warrants.
But dYdX also maintains, the warrant amendment mentioned above does not alter the staggered unlock that occurs after the initial unlock date.
Reportedly, 83 million from among the total 150 million tokens allocated to investors shall be unlocked on December 1, 2023. The likes of aptos (APT) and axie infinity (AXS) tokens have witnessed trading volatility before token unlocks—otherwise a bearish event with increased token supply.
The new schedule for releasing the DYDX tokens from the transfer restriction has 30% set for release on December 1, 2023. 40% tokens will be released on the first day of each month from January 1, 2024, to June 1, 2024.
Likewise, 20% tokens will be released on the first day of each month from July 1, 2024, to June 1, 2025, and 10% on the first day of each month from July 1, 2025, to June 1, 2026.
Scheduled to be released for early investors and dYdX founding team members on February 3 were over 150 million tokens. It could have reportedly led to a $300 million worth of DYDX tokens’ market release. Now, only 30% of the DYDX tokens are set for unlocking on December 1. The remaining 40% tokens would get unlocked in the initial six months of 2024.
The news sent the DYDX token’s price soaring by 21%, as it trades at $2.10 (up 19.56%), per CoinMarketCap (CMC), at press time. CMC reports DYDX token’s 24-hour high and low to be $2.19 and $1.69, respectively. Only around 15% of DYDX’s total 1 billion token supply is currently in circulation, per reports.