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A set of tokens will soon be released by the decentralized exchange dYdX in an unlocked event. How will the same-named native token’s pricing respond?
The 6.5 million DYDX coins will be released by the decentralized derivatives exchange dYdX on February 14th. Since the planned token release represents just 0.65% of the overall supply, its effects should be negligible.
The value of the dYdX token unlock at the current exchange rate is about $15.9 million.
Furthermore, only 20.4% of the 1 billion DYDX tokens in circulation have been unlocked. Its market capitalization so amounts to about $361 million.
Over the following three years, the remaining 80% of the tokens will be released in modest, regular amounts.
Early investors are also given a higher priority in dYdX tokenomics. Tokens assigned to that group make up over 30% of the total supply. An additional 30% is distributed equally between the team and the community treasury.
20% of its tokens are used for trading incentives, while 8% are used for rewards for liquidity providers. Future workers, retroactive mining awards, and staking pools receive the remaining funds.
Up to July 2026, DYDX unlocks are scheduled for each month. The sum provided for the team and investors dramatically rises starting in December 2023. This modification to the prior unlock schedules was disclosed by the dYdX Foundation in late January.
Additionally, a vote is being held by project governance to cut trading incentives by 45%, from 2.9 million to 1.6 million tokens every epoch.
Tokens are also being unlocked by the Sandbox today, but with a considerably greater release. SAND coins, estimated to be worth $250 million, will soon enter the market, and their values are already falling.
As the next unlock draws near, token prices have fallen 3.1% for the day. As a result, at the time of writing, DYDX was trading at $2.42.
The DEX token has lost 16% over the previous seven days, making the last several weeks unfavorable for the token.
Similar to its DeFi siblings, DYDX has seen significant losses during the bad market. The token’s current value is down 91.3% from its all-time high, which was $27.86 in September 2021.
For long-term vesting and tokenomics, these timed token unlocks may be advantageous, but they often depress values in the near run.
