Tools for Humanity (TFH), the developer behind the Worldcoin project, has announced changes to its native token unlock schedule.
According to a July 16 blog post, TFH is extending the unlock schedule for 80% of Worldcoin (WLD) tokens held by its team members and investors. Originally set to unlock over a period of three years, the tokens will now become accessible over a five-year span, starting on July 24, 2024.
With this change, the affected tokens will unlock progressively over the following four years, concluding by the end of July 2028. Tools for Humanity disclosed the decision to the Worldcoin Foundation on July 15, citing the protocol’s long-term vision.
By extending the unlock period, fewer tokens will be released into the market immediately, which can prevent a sudden increase in supply that could lower the token’s price. The WDL token rose nearly 20% on the news, trading at $2.36 at the time of writing.
Worldcoin is co-founded by OpenAI’s Sam Altman. Central to the project is the concept of “World ID,” a digital identity verification system where users can verify their humanity by having their irises scanned by a device known as an “Orb.” As of April 2024, Worldcoin’s World App claimed to have 10 million registered users.
The majority of WLD tokens in circulation are currently held by these registered users with an orb-verified World ID. Since its launch in July 2023, more than 211 million WLD tokens have been claimed by World ID holders, representing more than 77% of the 275 million WLD currently in circulation, as per the foundation. The Worldcoin Community pool has $7.22 billion worth of WLD tokens in treasury.
Worldcoin has faced criticism and regulatory scrutiny due to concerns over privacy and data security regarding the use of biometric data from iris scans.
Magazine: Memecoins: Betrayal of crypto’s ideals… or its true purpose?