Decentralized exchange dYdX delayed its token unlocks for investors to Dec. 1 from Feb. 3, according to a note sent out to investors obtained by The Block.
The exchange was set to release 150 million tokens ($282 million) to investors, community members and the project’s treasury next month, a move that would have doubled the current supply — with more tokens to be unlocked over the following months. Postponing the unlocks for investors will reduce this amount by 83 million tokens ($156 million), shifting a significant part of the impact to the end of the year.
Under the new schedule, the 83 million tokens — 30% of the 277 million tokens destined for investors in total — will be unlocked On Dec. 1, according to the note. After that happens, 40% of the total tokens will unlock monthly over the following six months, then 20% over the following year and 10% the year after that.
DYdX is currently based on StarkEx, a zero-knowledge proof-powered layer running on top of Ethereum, but it’s in the process of abandoning this platform in favor of its own application-specific blockchain in the Cosmos ecosystem.
The price of dydx has rallied in the last few days, rising to $1.88 today from around $1.30 on Jan. 19. The token is now at its highest point since early December. Tokens in the wider crypto market have also grown during that time, but typically by much less.
DYdX declined to comment on this story.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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