Optimism and Sui Brace for Expanded Circulating Token Supplies:
As mentioned earlier, the Optimism and Sui cryptographic networks are preparing for a substantial token unlock scheduled to occur this week.
This will result in a significant expansion of the circulating supply of tokens for both networks.
Optimism’s circulating supply will double as a result of the token unlock, whereas Sui will experience a relatively smaller increase with the tokens being allocated to retail investors.
Optimism, a prominent Ethereum Layer 2 network, is set to witness one of its largest token unlocks, releasing 387 million tokens on May 31st, valued at $590 million.
These tokens will be distributed among core contributors and investors, constituting 9% of the total token supply and resulting in a significant 114% increase in the circulating supply.
The announcement of this token release comes a week ahead of Optimism’s Bedrock upgrade, which aims to enhance network performance and reduce transaction fees.
Unfortunately, the native token of Optimism, OP, has experienced a 6% decline in the past 24 hours, dropping from $1.64 to $1.52.
Sui Blockchain to Release 61 Million Tokens for Retail Users:
Exclusive to the Level 1 Sui blockchain, a comparatively smaller token unlock is scheduled for June 3rd. Around 61 million tokens, equivalent to $62 million in value, will be released. As a result, the circulating supply of Sui tokens will witness a 13% increase.
Furthermore, Sui has confirmed its plans for regular token unlocks, similar to the upcoming Optimism unlock, until November. During this period, the circulating supply of Sui tokens will double.
However, a significant distinction lies in the Sui unlock, as the tokens will be distributed to retail users through airdrops.
This information was shared by Alex, an analyst at cryptocurrency trading firm Scimitar Capital, who posted the following statement on Twitter:
https://twitter.com/thiccythot_/status/1663462970746351616?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1663462972893569026%7Ctwgr%5E9ca5d5fd424b727fd505f0fa86f972b539e55ceb%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fen.cryptonomist.ch%2F2023%2F05%2F30%2Fnew-airdrop-optimism-sui-token%2F
“On the other hand, the SUI token unlock has a slight difference. The tokens will be distributed to SUI farmers through an airdrop, instead of being allocated to the team and investors. This process may be more straightforward for retail participants, as coordination may be challenging for investors and the team.”
Additionally, a portion of the tokens will be allocated to the Sui Foundation. The Scimitar Capital analyst further commented on Twitter, saying:
https://twitter.com/thiccythot_/status/1663462981428969473?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1663462988571877376%7Ctwgr%5E9ca5d5fd424b727fd505f0fa86f972b539e55ceb%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fen.cryptonomist.ch%2F2023%2F05%2F30%2Fnew-airdrop-optimism-sui-token%2F
Lastly, it is worth mentioning that notable token releases have taken place in May as well. For instance, Avalanche unlocked 9.5 million tokens valued at $139 million on May 28th.
This accounts for approximately 1.3% of its total token supply. However, the token price did not experience any significant impact as a result of this unlock.
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Optimism has scheduled the release of its Bedrock update for June 6th.
As previously mentioned, Optimism is nearing the launch of its highly anticipated Bedrock update, scheduled for June 6th. This significant update aims to substantially decrease transaction fees, enhance network security, and improve compatibility with Ethereum.
The Optimism team recently shared on Twitter that the network will undergo a temporary downtime of approximately two to four hours on June 6th to facilitate the update process.
🚨The official date of OP Mainnet’s upgrade to Bedrock has been set: June 6, 2023 at 16:00 UTC!
The upgrade will require 2-4 hours of downtime for OP Mainnet.
Visit Mission Control for full details on what to expect:https://t.co/o6UjKZaVKy
— Optimism (@Optimism) May 15, 2023
Bedrock marks a significant milestone as the inaugural network upgrade that received approval from the Optimism Governance Board’s Token House.
The community-authored Bedrock report highlights the following key enhancements: “Bedrock introduces several improvements to the existing system, including reduced transaction fees through optimized batch compression and leveraging Ethereum as a data availability layer.
It also addresses delays in including Layer 1 transactions in rollups and enhances the accuracy of managing Layer 1 rearrangements.”
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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