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WOO ecosystem locks up $45 million in unallocated tokens, release will be linked to community governance

WOO ecosystem locks up $45 million in unallocated tokens, release will be linked to community governance

BlockBeatsBlockBeats2024/09/04 10:17
By:BlockBeats

The WOO ecosystem will lock all undistributed WOO tokens in the vault, ending the token supply phase and starting decentralized management.

Original source: WOO


The WOO ecosystem announced an important milestone today, locking all of the undistributed $45 million WOO tokens into the treasury, marking the official end of its WOO token supply phase and heralding the arrival of a new era of decentralized treasury management.


Since its launch in early 2023, WOO's token economic reform has aimed to build a stable and sustainable token supply system. The locking of all reserved tokens is the result of WOO's deep reflection and adjustment of its token economic model. With the tokens sealed, WOO will pay more attention to the voice of the community, encourage broad participation within the ecosystem, and jointly shape the future direction of the project.


WOO's token unlocking mechanism is designed to be closely linked to two key milestones: the effective implementation of the token governance mechanism and the achievement of the FDV goals, during which WOO tokens will be continuously locked. This design aims to ensure that the release of tokens is linked to the actual performance of the project and the level of community governance, thereby avoiding potential inflation risks and enhancing market confidence.


WOO Ecosystem Vice President Ben Yorke said: "The traditional vesting model of time-based token unlocking often leads to inflation and is inconsistent with the performance of the ecosystem. Especially after the recent high-profile overspending incidents of the Ethereum Foundation and Polkadot, we recognize that reducing uncertainty and promoting decentralized supervision is the best practice at present. We have solved these problems through a milestone token unlocking model, tying token release to specific milestones, and combining decentralized governance to ensure community supervision and alignment with our strategic goals. The remaining WOO tokens will only be unlocked when a specific token fully diluted valuation (FDV) is reached. "


The new token economic structure reflects WOO's commitment to transparency and decentralization, ensuring that all future developments and decisions will be made with the active participation of the community. This move lays the foundation for WOO's continued growth and innovation.


York then added: “With the continuous influx of new tokens in the market and the relatively weak demand from retail investors, the fundamentals of the token economy are receiving unprecedented attention. We have noticed that many new projects have extremely low circulating supply, which requires retail investors to bear time-based inflationary pressure for a long time to maintain price stability, which is obviously unrealistic. Therefore, we believe that investors will increasingly tend to choose mature projects with lower risks of token oversupply and transparent governance structures. ”


This article comes from a contribution and does not represent the views of BlockBeats


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