Unlock (English unlock) is called the unlocking of tokens that were previously frozen under the terms of investment rounds or other funding programs.
Typically, the team carefully works out the tokenomics so as not to cause a lot of selling pressure at various stages of the unlock and thereby not bring down the price of the token. However, some factors – for example, a lack of liquidity or profit-taking by early investors immediately after the tokens are unlocked – can seriously affect the asset’s quotes.
Here’s a look at 3 major unlocks to watch this week.
1. Avalanche (AVAX)
- Unlock date: December 21
- Number of tokens unlocked: 9,540,000 AVAX
- Current circulating supply: 281,830,000 AVAX
Avalanche is an open-source platform for running decentralized applications, as well as deploying public and private blockchains in a single scalable ecosystem. The AVAX project’s native token is used to pay fees and settlements on Avalanche subnets. It can also be added to staking with an annual return of up to 11%.
The 9.5 million coins unlocked on December 21 will be distributed among the project team, airdrop participants, strategic partners and the Avalanche Foundation.
2. Space ID (ID)
- Unlock date: December 22
- Number of unlocked tokens: 18,490,000 ID
- Current circulating offer: 430 506 132 ID
Space ID is a universal decentralized identification protocol that connects people, assets and dApps across different blockchains. The platform allows you to use one domain name to represent your identity across all separate applications and networks. On December 22, the project will unlock more than 18 million ID tokens, which will be divided between the Space ID Foundation and airdrop participants.
3. Algorand (ALGO)
- Unlock date: December 22
- Number of tokens unlocked: 33,340,000 ALGO
- Current circulating supply: 8,000,000,000 ALGO
Algorand is a high-performance blockchain with fast and cheap transactions, powered by its own Pure Proof-of-Stake (PPoS) consensus algorithm. The native ALGO token is used for staking, paying fees, running relay nodes, and as a governance token.
Most of the tokens unfrozen on December 22 will go to ALGO stakers. The remaining coins will be used to reward new users of the blockchain.
Source: Cryptocurrency
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