The Worldcoin (WLD) token has faced persistent downward pressure since March, sliding from a peak of nearly 12 USDT to a low of 1.72 USDT. While broader market conditions have contributed to this decline, the primary driver has been the continuous and substantial token unlock schedule, flooding the market with supply. However, recent changes to WLD’s token release mechanics have sparked renewed optimism, triggering short-term price surges of 8% and 13% within hours of each announcement.
But can these adjustments truly stabilize the token’s trajectory? And what do they mean for long-term holders and ecosystem participants?
Understanding WLD’s Token Unlock Structure
Launched on July 14, 2023, WLD entered circulation with an initial supply of 143 million tokens, including 100 million loaned to market makers. This leaves a real initial circulating supply of 43 million tokens out of a total cap of 10 billion.
The first three years of WLD's release schedule are particularly aggressive. The first year is dedicated entirely to community unlocks, while institutional unlocks — including those for investors, employees, and advisors under Tools for Humanity (TFH) — begin in the second year and continue for two years.
By the one-year anniversary of the token launch, the actual circulating supply had grown to 276 million tokens — a staggering inflation rate of 541%. It's important to distinguish between actual circulating supply and theoretical maximums. Data from Orb API reflects real-time circulation, whereas platforms like Token Unlocks use upper-bound estimates: an initial 500 million and a current theoretical supply of 1.65 billion. The rate at which these tokens enter true circulation is governed by network growth and policy decisions.
On its one-year mark, WLD activated TFH unlocks, potentially increasing theoretical circulation from 1.65 billion to up to 6.5 billion tokens. This translates to a daily unlock of approximately 6.62 million WLD tokens. At a price of 2.8 USDT, that’s about $18.5 million in daily sell pressure.
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Even when adjusted for the current ratio of real-to-theoretical circulation (276M / 1.65B), this still implies around $2.58 million in daily sell-side pressure. However, this ratio is dynamic and subject to change based on governance actions and adoption rates — making long-term predictions uncertain.
Note: Tools for Humanity (TFH) is the core development team behind Worldcoin and operates the World App. The TFH unlock includes allocations for early investors, team members, and consultants.
First Adjustment: Extension of Unclaimed WLD Reservations
On July 10, Worldcoin announced an extension of the claim period for unclaimed reserved WLD tokens by one additional year. This decision, while aimed at inclusivity, effectively increased future supply pressure.
Background: Shortly after launch in July 2023, the Worldcoin Foundation introduced a reservation system allowing users who hadn’t yet completed Orb verification to reserve WLD tokens for future redemption. This was designed to encourage global participation regardless of immediate access to Orb devices.
By extending the claim window, previously dormant or forfeited tokens are now eligible to re-enter circulation over the next 12 months. While no official figure has been released on the exact volume affected, a Worldcoin tweet confirmed that around 6 million users were impacted by this change.
This adjustment may seem counterintuitive — boosting supply when the market is already under pressure — but it aligns with Worldcoin’s broader mission of equitable distribution and mass adoption.
Second Adjustment: TFH Unlock Period Extended from 2 to 4 Years
In a more market-friendly move, Worldcoin recently announced that 80% of tokens allocated to early TFH contributors — including investors and team members — will now be locked for four years instead of two.
Under the original vesting plan:
- Daily unlock: ~3.19 million WLD
- Value at 2.8 USDT: ~$7.44 million per day
With the new four-year schedule:
- 80% of those tokens are spread over twice as long → half the daily release
- 20% remain on the original two-year vesting
New daily unlock calculation:
(3.19M × 80%) ÷ 2 = 1.276M
- (3.19M × 20%) = 0.638M
= ~1.914 million WLD/day
Worldcoin’s official announcement rounded this to approximately 2 million WLD per day, down from the previous 3.19 million.
Combined with other unlock streams, total daily issuance drops from 6.62 million to roughly 5.4 million WLD, reducing daily sell pressure by about $3 million at current prices.
While not a dramatic reduction in scale, this extension signals strong commitment to long-term sustainability and aligns stakeholder incentives with ecosystem growth.
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Core Keywords and SEO Integration
This analysis revolves around several key concepts critical to understanding WLD’s market dynamics:
- WLD token unlock
- Worldcoin tokenomics
- TFH vesting schedule
- cryptocurrency supply inflation
- token release rules
- Orb verification
- Tools for Humanity
- crypto market sentiment
These terms naturally appear throughout the discussion, ensuring relevance for users searching for insights into WLD’s price behavior, governance decisions, and long-term viability.
Frequently Asked Questions (FAQ)
Q: Why did WLD’s price go up after the unlock changes?
A: Despite only moderate reductions in supply, the market interpreted the four-year lock extension as a strong bullish signal — showing that insiders are committed long-term. Short-term traders often react positively to perceived supply constraints.
Q: Does extending unclaimed reservations increase sell pressure?
A: Yes. Delaying claims means more tokens could enter circulation over the next year rather than being forfeited. However, this is balanced by slower redemption rates and broader user inclusion.
Q: How much daily sell pressure does WLD face now?
A: After adjustments, estimated daily unlocks are around 5.4 million WLD. At $2.80 per token, that’s about **$15 million in potential daily sell pressure**, though actual trading volume depends on holder behavior.
Q: What role does governance play in WLD supply?
A: Governance controls how quickly reserved and unallocated tokens enter circulation. Future proposals could further adjust release speeds based on network growth metrics and economic conditions.
Q: Will World Chain affect WLD’s utility?
A: Yes. The upcoming launch of World Chain — a layer-2 network using WLD for gas fees and staking — could significantly boost demand if adoption grows. This would help offset inflationary pressures from ongoing unlocks.
Q: Is WLD still highly inflationary?
A: Absolutely. Even with adjustments, annual inflation remains high due to the front-loaded release schedule. Long-term sustainability hinges on increasing utility and demand through product adoption.
Final Outlook: Short-Term Relief, Long-Term Challenges
While the recent changes don’t fundamentally alter WLD’s inflationary nature, they reflect strategic governance decisions aimed at balancing supply with ecosystem development.
The market response — a cumulative 29% price increase following both announcements — suggests growing confidence in Worldcoin’s ability to manage its token economy. Yet, this may be more reflective of “short squeeze” dynamics than structural improvement.
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Looking ahead, the true test will be World Chain’s launch. If it successfully integrates WLD into meaningful on-chain use cases — such as identity verification, decentralized applications, or cross-border payments — demand could finally catch up with supply.
Until then, WLD remains a high-risk, high-potential asset driven by speculative sentiment and macro trends. Investors should monitor both unlock schedules and product milestones closely.
In summary:
Worldcoin has demonstrated agility in responding to market feedback. While token unlocks remain a concern, extended lockups and inclusive policies suggest a long-term vision. Whether that vision translates into lasting value will depend on real-world adoption — not just clever token engineering.