In Brief: Token unlocks are when previously restricted tokens are released, often tied to fundraising agreements. Projects plan these events carefully to reduce market pressure and stabilize prices. Here are five major token unlocks coming up next week.
Ethena (ENA)
Unlock date: January 29
Number of tokens unlocked: 12.86 million ENA
Current circulating supply: 3.03 billion ENA
Ethena is a synthetic currency protocol built on Ethereum. It offers a solution that doesn’t rely on traditional banks. Ethena also provides a dollar-denominated savings tool called the “Internet Bond.” The native token, ENA, gives holders a say in governance decisions. On January 29, Ethena will unlock over 12 million ENA tokens, valued at $11 million. These funds will go towards developing the ecosystem.
Optimism (OP)
Unlock date: January 31
Number of tokens unlocked: 31.34 million OP
Current circulating supply: 1.35 billion OP
Optimism is a Layer-2 scaling solution that speeds up transactions and lowers costs on Ethereum. The OP token plays a key role in governance, allowing holders to vote on proposals and shape the network’s future. On January 31, Optimism will unlock 31.34 million OP tokens. These will be distributed to core contributors and investors, as reported by Tokenomist.
Sui (SUI)
Unlock date: February 1
Number of tokens unlocked: 64.19 million SUI
Current circulating supply: 3 billion SUI
Sui is a high-performance Layer-1 blockchain. It focuses on optimizing network operations and security through a Proof-of-Stake consensus mechanism. Launched in 2021 by Mysten Labs, Sui allows holders to vote on governance proposals. On February 1, a significant token unlock will release tokens for Series A and B participants, the community reserve, and the Mysten Labs treasury.
ZetaChain (ZETA)
Unlock date: February 1
Number of tokens unlocked: 44.26 million ZETA
Current circulating supply: 634.37 million ZETA
ZetaChain is a decentralized platform that enables interoperability between different blockchains. Its main feature allows for cross-chain communication, making it easy to transfer tokens and data. On February 1, ZetaChain will unlock nearly 45 million ZETA tokens. These will fund initiatives like a user growth pool, an ecosystem growth fund, and more.
dYdX (DYDX)
Unlock date: February 1
Number of tokens unlocked: 8.33 million DYDX
Current circulating supply: 722 million DYDX
dYdX is the largest decentralized perpetual futures trading protocol. In early 2023, it announced changes to its tokenomics. According to the update, 27.7% of the total supply will go to early investors, 26.1% to the treasury, and 15.3% to the team. Most DYDX tokens unlocked on February 1 will go to founders and investors, with some reserved for current and future employees.
Next week, there will also be token unlocks for Eigen Layer (EIGEN), Celo (CELO), and Moca Network (MOCA), among others. The total combined value of these unlocks exceeds $450 million.