Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.
However, factors like lack of liquidity or early investor profit-taking can significantly impact an asset’s dynamics. Here are three major unlocks to watch next week.
Taiko (TAIKO)
- Unlock date: September 5
- Number of tokens unlocked: 12 million TAIKO
- Current circulating supply: 63.09 million TAIKO
Taiko is a decentralized Layer-2 scaling solution for Ethereum, leveraging ZK-Rollup technology. The protocol operates in a permissionless manner, allowing community members to participate in network operations
On September 5, Taiko will unlock a substantial portion of its TAIKO tokens, representing 19% of the current circulating supply. The project will distribute the newly released tokens to participants in the Trailblazer program.
Read more: Layer-2 Crypto Projects for 2024: The Top Picks
TAIKO Unlock. Source: token.unlocksImmutable (IMX)
- Unlock date: September 6
- Number of tokens unlocked: 32.47 million IMX
- Current circulating supply: 1.57 billion IMX
Immutable is a Layer-2 solution for scaling NFTs on the Ethereum blockchain. In September 2021, the project raised $12.5 million during the IMX token sale on the CoinList platform in just one hour. In March 2022, it closed a $60 million investment round and secured an additional $200 million from investors, including ParaFi Capital, Declaration Partners, and Tencent Holdings.
On September 6, the circulating supply of IMX will increase by 32.47 million tokens. These newly unlocked coins will be allocated to the development of the project and the broader Immutable ecosystem.
Read more: What Is Immutable?
IMX Unlock. Source: token.unlocksMode (MODE)
- Unlock date: September 6
- Number of tokens unlocked: 500 million MODE
- Current circulating supply: 1.3 billion MODE
Mode Network is a modular Layer-2 network focused on DeFi, built on Optimism’s Bedrock upgrade. The network features a unique contract revenue-sharing incentive at the protocol level, where both DApps and users that contribute to the Mode blockchain receive a portion of the network sequencer’s profits.
This current unlocking event involves 500 million tokens, nearly 40% of the circulating supply. Despite this, no additional unlocks are scheduled for more than six months. However, the community remains skeptical about this tokenomics design.
“For the coming week, there are 4 unlocks at more than 2% but we will especially have to watch $TAIKO which will unlock 19% of its supply on September 5 and $MODE on September 6 which will unlock 38.46% of its supply. Super tokenomics,” one X user commented.
Read more: Optimism vs. Arbitrum: Ethereum Layer-2 Rollups Compared
MODE Unlock. Source: token.unlocksOther next-week cliff unlocks include dYdX (DYDX), Liquity (LQTY), Hashflow (HFT), and Ethena (ENA), with a total value exceeding $77 million. Although many consider unlocks bearish, a well-planned schedule can strengthen a project’s long-term viability. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.
