Worldcoin surges 33% after extending token lock-up period for team, investors
Worldcoin developer Tools for Humanity (TFH) has announced an extension to the lock-up period for the WLD tokens allocated to its team members and investors, leading to a significant surge in the tokens prices.
The decision, made in alignment with Worldcoins mission, will see the lock-up schedule for 80% of these tokens extended from three to five years. The announcement caused a surge in the tokens price.
As of press time, WLD was trading at $2.65, up 33% over the last 24 hours, based on CryptoSlate data.
Two-year unlock period
The WLD tokens for TFHs early contributors were initially set to begin unlocking daily from July 24 over two years, meaning the tokens would have wholly entered circulation by 2026.
Under the new schedule, the unlocking process will now span four years, concluding in July 2028. The adjustment aims to support the sustained development and stability of the Worldcoin ecosystem.
The Worldcoin project launched on July 24, 2023, and backed by Sam Altman aspires to become the worlds largest identity and financial network by distributing the majority of WLD tokens to individuals with verified World IDs. As of July, over 6 million unique humans participated in the network, holding secure digital passports that verified their humanity.
TFH, which played a crucial role in the initial development of Worldcoin, transferred protocol stewardship to the independent Worldcoin Foundation nearly a year ago but continues to support the project by operating World App, the first Worldcoin-compatible wallet.
Holder tokens unaffected
Despite the extended lock-up for TFH team members and investors, the WLD grants for verified World ID holders remain unaffected. To date, more than 211 million WLD tokens have been claimed by these individuals, representing over 77% of the 275 million WLD in circulation.
The Worldcoin Community pool, managed by the Worldcoin Foundation and World Assets Ltd, still holds approximately 7.22 billion WLD tokens dedicated to ensuring the projects long-term sustainability.
The decision to extend the lock-up period reflects TFHs commitment to the projects longevity. By exceeding the standard practices of many other projects, TFH aims to provide greater stability for the Worldcoin network as it seeks to build essential infrastructure in an AI-dominated future.
The impact of this extension on the WLD circulating supply is expected to be gradual. The Worldcoin Foundation has shared a forecast based on current data, although actual circulation will depend on various factors such as network growth and user activity.
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Text source: CryptoSlate
