Polygon’s co-founder Sandeep Nailwal has cleared the tension among the network users regarding a whooping 1.4 billion MATIC tokens unlocked from the vesting contract to the Polygon foundation on August 1.
Also read: Polygon MATIC price prediction
Polygon unlocks 1.4 billion MATIC from vesting contract
Cryptocurrency researcher Sam Martin first reported that the Ethereum scaling network unlocked nearly 1.4 billion MATIC from the vesting contract, which represents about 14% of the token’s supply. The funds were moved in several transactions to the foundation, as seen from the blockchain explorer.
The tokens unlock spurred a bit of tension in the MATIC community. Some users were caught unaware of the movement, which led the holders to worry about their investment in the token.
However, Nailwal has clarified the development, saying that the token transfers were planned. In a tweet, Polygon’s co-founder explained that it “was a planned movement from the tokens which as per vesting have been unlocked 1 year back.” He said the funds are staking, foundation treasury.
In the telegram channel, Polygon also said the tokens were already vested, but they were not claimed until August 1. About 6.4% or 640,000,000 MATIC were allocated to the team, while 546,609,632 (5.46%) of the tokens were allocated to the foundation. The remaining 200,000,000 (2.00%) MATIC tokens were allocated for staking rewards.
MATIC price update
MATIC is currently trading around $0.8712, with a market capitalization close to $7 billion. The token has lost more than 3% over the past 24 hours but still holds a 14.78% gain on the weekly timeframe.
