The decentralized identity project Worldcoin has recently made an announcement regarding the extension of lockups for early investors and team members. This decision has resulted in a notable increase in the project’s native token, WLD, which has surged by 15%.
Following the announcement, the price of WLD has risen to $2.457, up from $2.147, marking a daily gain of 26%, based on CoinDesk data.
In a blog post, Worldcoin stated, “The unlock schedule for 80% of the WLD held by TFH’s (Tools for Humanity) team members and investors is being extended from 3 to 5 years.” This means that the vesting schedule will be more gradual, with full unlocking expected by 2029, as opposed to the original plan.
Typically, token unlocks are viewed as a bearish event in the market, as they increase the circulating supply and may lead to early investors selling off their holdings.
Worldcoin, led by OpenAI CEO Sam Altman, secured $115 million in a Series C funding round last year. The project aims to provide decentralized identity solutions globally through Worldcoin decentralized ID.
The current circulating supply of WLD stands at 275 million tokens, with 77% initially claimed by World ID holders. With the revised unlock schedule, the circulating supply is anticipated to reach 400 million tokens in September, instead of August.