Home » dYdX: Unlocking of around $300m in tokens pushed back to December

dYdX: Unlocking of around $300m in tokens pushed back to December

by Thomas

This is quite a thorn in the side of dYdX users. The platform that was preparing this week to release 150 million DYDX tokens to investors, advisors and employees has finally decided to push the deadline to December 2023. This represented nearly $300 million at the current price, and a 67% increase in supply.

dYdX pushes back token release

This deadline had the effect of a sword of Damocles over the heads of DYDX token holders. The dYdX platform planned to add 150 million new tokens to circulation by February 3, 2023, for use by investors in the funding, consultants and employees.

This amount of new tokens represented a mass of approximately $288 million and a 1.67-fold increase in the total supply. A move that would have had the effect of massively diluting the value of tokens already in circulation and undeniably pulling the price of DYDX down.

However, the dYdX platform has decided to extend this deadline to December 1, 2023. This news came as a relief to token holders and allowed the price of DYDX to rise by more than 20% in the space of 24 hours.

The token started the day on Wednesday at a price of $1.56 before starting a real bullish rally taking it even above $2. At the time of writing, DYDX is trading at around $2.1. As a reminder, dYdX is a decentralised trading platform and one of the only ones to have taken advantage of FTX’s fall to repatriate users.

Note however that this rise started well before the official announcement of dYdX. Indeed, it is undeniable that the initial investors who were to receive their tokens on February 3rd were informed in advance of this decision.

What is the schedule for dYdX now?

While this announcement is positive in the short term, it only pushes back the deadline for the release of these new tokens to December 1st 2023. Let’s take a look at what to expect from this event.

In total, the foundation has created 1 billion DYDX. At the time of writing, only 232 million tokens are in circulation. This amount increases almost linearly every 28 days in order to reward the platform’s traders.

As of December 1, 2023, the 150 million new tokens will be released as follows: 45.8 million for employees, 21 million for the foundation for future recruitment and 83.2 million for investors who participated in the funding rounds.

DYDX allocation and token release forecast over time

DYDX allocation and token release forecast over time


The other thing to remember is that the 83 million DYDX to investors represents 30% of what they will receive in total. After the first event in December, 40% of the total tokens will be released monthly over the next six months, followed by 20% over the next year and 10% the year after that.

It should also be noted that DYDX is the 123 rd most valuable cryptocurrency, with $305 million in capitalization. Eventually, with 1 billion tokens in circulation – and assuming a price still equal to $2.1 – the token would be in 32nd place in this ranking.

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