Polygon Releases 1.4 Billion MATIC Tokens From Vesting Contract
- 40mil (6.4% of MATIC supply) tokens will be staked directly by the co-founders.
- (5.46% of MATIC supply) will be held by the Polygon Foundation. 200mil (2% of MATIC supply) was unlocked for staking rewards.
Ethereum Layer-2 scaling platform Polygon unlocked 1.4 billion MATIC tokens, representing 14% of the tokens’ total supply, from its vesting contract. According to reports, the funds were moved in nine separate transactions from the vesting contract to different sectors of the project.
Polygon provided a breakdown of the tokens in its official telegram channel.
Upon claiming, 40mil (6.4% of MATIC supply) tokens will be staked directly by the co-founders. As per the announcement, “The token unlock will move into the previously unlocked tokens which are still mostly held by the co-founders at their respective addresses or have been put into staking as shared with the community.”
While providing a public link for users to track MATIC tokens, Polygon states that 546mil (5.46% of MATIC supply) will be held by the Polygon Foundation. 200mil (2% of MATIC supply) was unlocked for staking rewards.
Soon after the MATIC token release became a talking point among the crypto community, Polygon founder Sandeep P Naiwal took to Twitter to mitigate user concerns “This was a planned move from the tokens which as per vesting have been unlocked 1 year back. These are staking, foundation treasury, etc.”
He further added that an important announcement regarding the release from the vesting contract could be expected soon.
The latest development is notable mainly because Matic’s price tends to go up when it’s close to a vesting schedule, then go right back to the bottom then come back again when it’s close to another vesting schedule.
Polygon (MATIC) gained an impressive 83% in July. Last month was eventful for Polygon since it was also the month in which the network announced plans to implement a zero-knowledge Ethereum Virtual Machine/zkEVM, which bundles multiple transactions before relaying them to the Ethereum blockchain. The firm is hoping zkEVM’s benefits could drive MATIC above $1.
Polygon’s TVL has dropped by 4% in the last 24 hours. The decline in TVL in recent days is indicative of the network’s lack of a more substantial user base growth to support further MATIC token price momentum.