Xai Games Issues Important Update on $36M XAI Unlock for July

Xai, a layer 3 gaming-based project built on Arbitrum, has issued an important update regarding its token unlock scheduled for July 9. According to the platform, about 107.9 million tokens which stands at approximately $36 million will be unlocked into the market.

For context, token unlock refers to releasing a certain amount of assets previously locked or restricted from circulation in the market. Oftentimes, these unlock mechanism leads to increased trading volume and price volatility for the asset as investors will now have the ability to buy or sell it.

Xai Set to Release Tokens Worth $36M

In a post on X , the gaming platform clarified that the upcoming token unlock does not account for 79% of its circulation supply. Rather, the tokens set to release into the market stands at 107.9 million which is 36% of the circulating supply.

Furthermore, the platform disclosed the decision to relock team tokens over 6 months and the daily unlock mechanism. According to Xai, the move to relock team tokens have significantly reduced the figure from 85 million to 17.7 million in July.

Apart from tokens allocated to the team, investors will receive 72.3 million ( worth over $24 million). The project’s advisor and the data availability committee (DAC) will receive 2 million and 5.2 million respectively. Finally, the Xai foundation will be allocated 8.5 million which is worth about $2.89 million.

“All tokens unlocking from each allocation are unlocked on a daily unlock, not monthly. This is for all months, not just July. This means there is not a single day where a large amount of tokens will unlock all at once”, the platform stated.

Xai’s Market Performance

Historically, most token unlocks are often accompanied by a price drop. However, a well-planned schedule have strengthen a project’s long-term viability in some cases. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.

It is now left to see how the upcoming token release will affect the asset. Notwithstanding, Xai is currently seeing a notable price increase. According to data from Coinstat, the token currently trades at $0.35 which represents a significant 13.62% increase in the last 24 hours.