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OrangeDAO, a 3,000-member decentralized community open to Y Combinator founders, has unveiled a web3 fellowship program. 

The ten-week program is the result of a collaboration with Press Start Capital, a venture firm founded this year to invest in web3 gaming, NFTs and entertainment. 

Described as an “experiment” by Press Start Capital founding partner Steven Chien, its inaugural cohort kicked off in early September. OrangeDAO members accepted onto the fellowship received mentorship and were paid a $25,000 grant in USDC. The program will culminate in a closed demo day in early November. 

Most of the projects backed by the fellowship are in very early stages, with some not even having an established entity or name. 

Some of the ideas under development include a DAO network for formerly incarcerated Americans to provide help in reintegration, a personal web3 executive assistant to leverage the utility of one’s NFT and token holdings, and a software development kit to build “normie-friendly” web3 apps. 

“So we are literally the first check-in into these projects and that’s normally a pretty risky strategy,” said Chien. “But we feel that because we’re partnering with OrangeDAO, who are all experienced YC alum, there’s less of a risk here.”

OrangeDAO itself benefits from its connection to the startup accelerator but is not officially affiliated with YC.

Three of the ten projects are in the process of raising money, claimed Chien. Both OrangeDAO and Press Start Capital have the right to participate in future rounds for these projects if they choose to raise. 

Bridging the gap

The fellowship is backed by Press Start, which contributed $100,000, and OrangeDAO which used $150,000 of its funds. Previously, OrangeDAO raised $80 million for its venture fund primarily from layer-one blockchains Algorand and Near. 

Chien sees the fellowship as a bridge to other accelerators, saying that the bar for getting into a16z’s Crypto School or web3 accelerator AllianceDAO today is what obtaining a Series A would have been ten years ago. 

“We really view ourselves as a micro-accelerator,” said Chien “And that we can feed into other accelerators like AllianceDAO or a16z’s Crypto School.” 

Along with the a16z and AllianceDAO accelerators, the new effort joins other programs geared towards accelerating projects in the crypto space. Earlier this week, Fashion retailer Farfetch and venture firm Outlier Ventures welcomed eight startups to its inaugural fashion-focused web3 accelerator, Dream Assembly Base Camp. In April, Ignite, a core development team within the Cosmos ecosystem, revealed a $150 million accelerator for web3 projects.

According to The Block Research, Y Combinator’s crypto alumni have raised over $1 billion in funding to date — close to half of the funding went to NFT marketplace OpenSea, which closed a $300 million round in January. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

A hacker drained 30,437 OHM tokens (about $300,000) from one of Olympus DAO’s smart contracts on Ethereum at 1:22 a.m. ET today.

The incident took place because a contract failed to properly validate the hacker’s malicious fund transfer request, according to security firm PeckShield.

The affected contract, known as “BondFixedExpiryTeller,” was used to open bonds denominated in the Olympus DAO’s OHM tokens. The contract lacked a validation input in the “redeem() function,” which allowed the attacker to trick input values to redeem funds, PeckShield said. 

In the official Discord, the Olympus team acknowledged the exploit and said: “This morning, an exploit occurred through which the attacker was able to withdraw roughly 30K OHM ($300K) from the OHM bond contract.” The team said the rest of $268 million staked on Olympus DAO was safe and that it planned to compensate users hurt by today’s incident.

Olympus DAO is a DeFi protocol with a treasury that backs the OHM token. It offers cryptocurrency bonds denominated in vested OHM tokens. The DAO issues OHM tokens at a discount to investors in exchange for their cryptocurrencies, a process designed to increase its treasury over time. The bonds are managed with smart contracts, one of which was involved in today’s security incident.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Standard financial policies are not sufficient for regulating decentralized finance, according to a research report funded by the European Commission published this week.

“This report is part of our ambition to understand DeFi further, to inform our thinking about how to address any concern potential public public policy consequences,” Mattias Levin of the European Commissions department for digital finance, said in a webinar outlining the report on Friday.

Recognizing the difference in the way DeFi structures information compared to traditional finance, the report on approaches to the regulation and supervision of decentralized finance says that “standard policies [are] inadequate to the treatment of DeFi services.” As a response, it breaks down a taxonomy of policy proposals.

Firstly, the report proposes to have a separate policy to regulate the activity of legal entities based on micro-prudential requirements. This would apply to “entities that were legally subjected to the authority of standard public institutions,” according to the report.

Secondly, a voluntary compliance framework would cover both protocols and legal entities. Here, “protocols and users freely choose to adhere to some policy requirements in order to obtain different forms of public support and guarantee such as a stamp of public approval,” the report reads.

The third is a public observatory based on public opinions and on-chain data. “Such an institution would deploy public investigations and issue opinions and warnings publicly about specific DeFi protocols, practices and public address activities,” according to the report.

Finally, the study recommends building an approach for off-chain markets — like oracles, which connect on-chain and off-chain data. Oracles are key for connecting DeFi with traditional economies. The report gives preliminary routes for this but admits that “the optimal design for oracle markets remains largely under-developed.”

The report, written by an academic linked to KU Leuven, will inform the debate on DeFi within the EU institutions and upcoming EU Commission proposals. 

The European Commission is gaining traction with studies on how to regulate DeFi, with a tender for a study on “embedded supervision” of Ethereum released earlier in October.

The EU’s comprehensive Markets in Crypto-Assets regulation, set for a final Parliamentary vote in November, is focused greatly on centralized entities of crypto — such as service providers — and stablecoin regulation. With no clear-cut framework for regulating decentralized entities, the institutions are pulling resources into bridging that gap.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Fidelity isn’t backing down in the crypto bear market. 

The investment juggernaut’s Fidelity Digital Assets unit plans to add another 100 new staff over the next six months, Chris Tyrer, head of Fidelity Digital Assets Europe and head of Fidelity Digital Asset Management, said during a panel at the Blockworks Digital Asset Summit in London this week. That would take headcount to around 600. 

“We’ve gone through a fairly aggressive hiring spree over the last 12 months and we probably, in excess, doubled the size of our organization,” Tyrer said. “We’re probably looking at adding another 100 over the next three to six months.” 

Fidelity has long been deep into crypto. The firm, which oversees $9.9 trillion, recently revealed an Ethereum index fund and has launched a digital asset exchange alongside Charles Schwab and Citadel securities. Fidelity Digital Assets, an independent subsidiary, recently announced that it will start offering ether to institutional clients by the end of this month in addition to its existing bitcoin trading and custody services.

Fidelity Digital Assets headcount currently sits at around 500 people, Tyrer said. There are two separate businesses, one is platform services, which covers everything from custody to trade execution, and the other is the asset management side, he added. 

The new hires will all be within Fidelity Digital Assets and will be across multiple regions and functions including technology, business development, client services, marketing and compliance, a source familiar with the matter said. 

In May, the Wall Street Journal reported that Fidelity Digital Assets was planning to hire 110 tech workers and 100 customer service specialists this year.  

Defying the bearish trend

This hiring strategy comes at a time when several major crypto companies are laying off staff. Last week, one of the industry’s oldest market makers, GSR, laid off around 20% of staff.  

The Block maintains a tracker of recent industry layoffs, which include companies such as WazirX, Checkout.com and Robinhood. 

There has also been an executive exodus at many top crypto companies. Leading managers have stepped down from roles at firms such as FTX, Kraken, Genesis and NYDIG. 

“I think there’s a windfall opportunity, where we’ve seen some of the Coinbase’s, the BlockFi’s and so on of this world reduce 20% of their workforce, which is actually softened that pressure,” said Tyrer, describing the current hiring environment. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

NFTs have an image problem: They’re often at the center of scams and rug pulls. They’ve been accused of being terrible for the environment. And many think that they’re tacky or not worth their exorbitant cost. Yet, they’ve always had one saving grace — the royalty payment.  

Royalties are why charities such as UNICEF chose to sell NFTs last year. It’s why many creators such as the rapper Nas entered web3. Unlike an artist selling a physical portrait in a small gallery and only earning money from the primary sale, artists can hope to earn perpetual revenue from a cut of every single future on-chain sale of that asset simply by minting one NFT.  

But one of the NFT’s main perks is under threat, as SudoAMM, the marketplace launched by the NFT exchange Sudoswap, demonstrated. In July, Sudoswap removed all royalties to reduce fees down to only 0.5% per transaction, upsetting many NFT creators.  

And artists are taking proactive measures to protect their royalties. QQL, a generative NFT project co-founded by Fidenza creator Tyler Hobbs, blocked X2Y2, an NFT marketplace that allows buyers to evade royalties. The creators of the project did this to make a statement and to defend the secondary royalties that benefit artists. 

QQL #125 – by 51mul4crum.eth pic.twitter.com/Hhz0pLSsA1

— Tyler Hobbs (@tylerxhobbs) October 18, 2022

“As far as artists are concerned, there isn’t a defined way to have recurring income month over month” by removing marketplace royalties,” Arya Ghoner, a web3 creator known as Kingfo, tells The Block. “Good projects will have to likely dilute you as an early investor with secondary collections to continue raising money for the company or their roadmap.” 

Removing or reducing royalties would go against the progressive principles afforded by web3, adds the NFT artist Damien Roach. “We need to stay focused on establishing new, more equitable and sustainable ways of doing things, instead of just recreating the old, outdated and failed structures. To give up on forging this reality would be a huge mistake.” 

The Ethereum token standard EIP-2891 attempts to tie royalties to on-chain transactions. However, a trick known as NFT wrapping subverts this measure to decentralize NFT royalties and leaves NFT royalties to the discretion of marketplaces.  

The rap on wrapped NFTs  

Centralized NFT marketplaces like OpenSea are among the entities that direct NFT transfers. OpenSea verifies that the transaction is authentic and facilitates the sale, taking ETH from the buyer’s wallet and giving it to the seller. OpenSea will then withhold the set percentage, up to 10% total, from every sale and distribute the funds back to the original creator as a royalty payment.  

The decentralized equivalent to OpenSea’s implementation of royalties is Ethereum Improvement Protocol (EIP) 2981, which stipulates that when the conditions of a sale are met and the NFT is transferred, a portion of the sale must go to the creator. That portion and the original creator’s wallet address is written into the smart contract code.   

However, the NFTs can be wrapped to follow different guidelines than originally intended.  

A wrapper acts like a box covering up whatever is contained inside of it, blockchain developer Marissa Hudson explains. It’s as if the smart contract scans the box before deciding whether to accept or deny its transfer.  

For an example of how wrapping works, say that an NFT is minted under ERC-721. This is the Ethereum token standard that creates NFTs. It asserts that the owner of an NFT is the person who has the NFT in their wallet and can use it however they like. In other words, the owner and the user are tied under ERC-721.   

But a new token standard called ERC-4907 breaks the tie between owner and user, allowing for rentable NFTs. An ERC-4907 box is wrapped around ERC-721 NFT. When that wrapped token goes through an ERC-4907 compatible smart contract, the token will be rentable even though it was not originally meant to be.  

As intended, an ERC-2981 token passing through an ERC-2981 smart contract would send a portion of the sale to the designated original artist. But someone can wrap the ERC-2981 token with an ERC-721 box and trade it through an ERC-721 smart contract. The ERC-721 smart contract would affirm that transaction, and it would go through without royalties.   

That’s why ERC-2981 can only uphold on-chain royalties if all parties agree to use that token standard with the right smart contract. Otherwise, it’s essentially, “ERC-2981 — also known as ‘Ask Nicely For Specific Royalties,” Hudson jokes.  

The issue with on-chain royalties  

There’s a way to stop NFT wrapping that circumvents royalties, but it would cause more problems than it solves.   

The ERC-721 token standard which most NFTs adhere to has several functions, one of them being “transfer from.” This is what traders use every time an NFT moves between addresses. It’s also what allows an NFT to be sold on a marketplace, whether that marketplace has royalties, such as OpenSea, or not, such as SudoAMM.   

“The reason you can’t enforce royalties is because as long as you allow the holder of the NFT to send the NFT to another address, it’s impossible to stop a marketplace from using that function to do the transaction,” a blockchain developer known as Nicholas says.

He adds that you could block this circumvention if you limit NFTs to be moved only when a sale happens, and not, say, transferring it between wallets. However, “that wouldn’t really solve the problem because I could just sell it to you for like a minimal amount of ETH at in order to bypass this mechanism, and then do a larger ETH transaction outside of the marketplace.”   

Drawing this distinction between sales and transfers is difficult anyway, Hudson says. Transfers occur for many reasons, such as a user swapping one token between their numerous wallets. To disable the “transfer from” would be to prevent the NFT from moving between wallets at all.  

Open season on NFT royalties 

With no good way to enforce NFTs on-chain, royalties are left up to marketplaces. 

Despite potential harm to artists, more NFT marketplaces may switch to a 0% royalty model to drive down costs. When the Solana-based NFT project DeGods removed its royalties, its founder bet that more marketplaces would follow suit. Five days later, Solana’s premier NFT marketplace Magic Eden decided to make royalty payments optional on Oct. 15, 2022.  

“In an already illiquid market, this just causes undercutting wars between royalty-free and royalty marketplaces — both looking to squeeze liquidity out of their JPEGs,” Ghoner says.

While an increasing number of marketplaces eschew royalties, some are taking a stand to support artists. One such platform is Daata, which commissions original digital work from emerging creators. Daata’s smart contracts pay artists a 15% royalty upon resale, higher than OpenSea’s cap of a 10% royalty.  

“We’re seeing that many secondary marketplaces are ‘opt-in’ on royalties. Some respect EIP-2981, some respect the royalty registry, and some  —like OpenSea — don’t,” Daata’s CTO Josh Hardy told The Block. “Daata’s position is always that artists should receive a royalty, and it’s a shame that marketplaces are circumventing paying royalties when it is one of the primary benefits of NFT technology for artists. Daata does not have a secondary marketplace yet, but if or when we do, we’d require that buyers pay the artist royalty.” 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

After over four years of preparation, zkSync is approaching its highly anticipated launch. 

One of the largest debates in the industry is how Ethereum will scale, and which methods or technologies will be the most successful. As a result, zkSync’s launch will be a pivotal moment for Ethereum, as it’s the first time zkSync’s novel scaling approach will be stress-tested in a live environment. 

ZkSync is a complicated piece of technology — with words like “zkEVM” making it a challenge to understand. Let’s break down what zkSync is, when it is launching and what makes it different from other Ethereum scaling solutions. 

What is zkSync? 

ZkSync is a novel approach to fixing Ethereum’s scaling woes. It’s one of the first applications of a technology called zero-knowledge proofs, and it’s claiming to be the first to use this technology in a way that’s natively compatible with Ethereum applications.  

In short, zkSync wants to provide much-cheaper and faster transactions on the Ethereum blockchain, and also be home to many popular Ethereum applications. If successful, we could see major decentralized exchanges and DeFi protocols expand to the zkSync layer — letting crypto users access this tools at a lower cost. 

More specifically, zkSync is a Layer 2 protocol. This means it is a layer that’s built on top of Ethereum and provides scalability benefits. Ethereum’s plan to scale is through a system of multiple layers, each one building on top of Ethereum and inheriting its security. ZkSync wants to provide an alternative to the current Layer 2 options, such as Arbitrum and Optimism. 

ZkSync is being built by a team called Matter Labs. On the team is Head of Product Steve Newcomb, who founded Powerset, which was acquired by Microsoft and later became part of Microsoft Bing. Alongside him is Head of Engineering Anthony Rose, who led engineering teams at SpaceX for several years, building software for Falcon, Dragon, and Starlink. 

When does zkSync go live? 

Currently, zkSync is running on a testnet, which has been operational since February. Users are able to interact with the platform and applications built on it ahead of the mainnet launch. 

The mainnet launch itself is broken down into several different stages. Each stage is designed to progressively build up and stress test various parts of the network before allowing access to masses of users or providing other projects with the ability to fully deploy on it. 

The first launch is called the Baby Alpha stage. It will take place on Oct. 28. This will see the network running — but without any external projects, to ensure the entire network is working properly before its ready for prime time. 

Once this is accomplished, the Fair Launch Alpha will begin. This is expected later this year and will allow ecosystem projects and a limited number of users to port over.  

The final stage is the Full Alpha, which will allow all projects and users to deploy and use zkSync. The team is planning to have this ready by the end of the year. 

Why is this launch significant for Ethereum? 

The main reason why the launch of zkSync is meaningful for Ethereum is because it will bring faster transaction speeds at a lower cost.  

Upon launch, zkSync will offer transactions that are up to 10x to 20x faster and cheaper than using the main Ethereum blockchain. This will provide an alternative way for crypto users to use the blockchain — particularly when more applications are available on zkSync. 

“We will finally be able to see scaling occur so that there’s thousands and thousands of transactions per second ultimately, and that the the fees for using Ethereum can go down and down and down to the point where the number of use cases, the number of apps coming on board and the number of users coming on board can finally reach mass adoption,” said Newcomb on The Scoop. 

What is a zkEVM and why does this matter? 

Another major element to zkSync is that it claims to be the first zkEVM to launch its mainnet. 

ZkEVM, short for Zero Knowledge Ethereum Virtual Machine, allows developers to build zero-knowledge applications using the industry standard coding language Solidity. The ability to use Solidity means developers can build applications using the same language and tools they would use on Ethereum, and easily transition to zkSync once it’s live.  

The important thing here is that zero-knowledge technology potentially offers greater scalability than other scaling solutions. Until now, projects haven’t been able to offer such scalability combined with the benefits of running an Ethereum Virtual Machine. 

The result is that it may provide a very tempting environment for Ethereum developers and applications. Not only may it offer strong scalability, but it will also allow for projects to be ported to the network quickly and easily. For this reason, many protocols are also expected to expand from the main Ethereum blockchain to zkSync and migrate from other blockchain ecosystems. 

“The amount of projects that have requested to port to us has ranged from people who were on alternative layer one solutions, people who were on Ethereum, people who were on optimistic roll ups, people who are on the Polygon sidechain and then a lot of projects from StarkWare are coming to us and saying, can we port?” Newcomb explained. “We are seeing just a firehose come at us of how many projects want to launch.” 

Newcomb added that it will probably take around nine months to bring on all of these projects because the team doesn’t want to bring on too many in the beginning and face sudden scaling issues. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Ethereum scaling solution zkSync will announce details on its native token in the first week of November, Steve Newcomb, chief product officer at zkSync’s development firm, Matter Labs, said in a Twitter Spaces discussion.

The statement comes ahead of zkSync’s planned launch of its main network next Friday, after being in development since early last year.

“In the first week of November, and I don’t wanna cause too much of a flurry here, look for us to make a statement that many people are waiting for relating to tokenomics,” Newcomb said, when asked about the timeline for a potential zkSync token. 

While Newcomb confirmed token details were on their way, he dismissed talk of an airdrop, a free token giveaway for zkSync users, as “just a rumor.” 

ZkSync is a ZK-Rollup-based scaling solution that aims to offer faster and cheaper crypto transactions by bundling transactions off-chain while simultaneously piggybacking on Ethereum for security with the help of zero-knowledge (ZK) proofs. 

With the mainnet, the project is gearing up to provide an environment called “zk-EVM,” which it says will fully support Ethereum smart contracts on the ZK-Rollup. 

More than 100 projects have shown interest in deploying their apps on zkSync after its mainnet launch. This includes Uniswap, the largest decentralized exchange by volume, which last week passed a governance vote to deploy its version 3 exchange on zkSync after the mainnet launch.

To fund the development of zkSync, Matter Labs raised $50 million in a Series B funding round led by Andreessen Horowitz (a16z) last November.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Would you pay for a username on social media? Telegram is hoping yes.

The messaging app is soon to launch a username auction platform on The Open Network (TON) blockchain, the company said in an official channel on Thursday.

Telegram founder Pavel Durov revealed the project in August, citing inspiration from the success of a recent TON auction for their wallet usernames. Some, including “casino.ton,” sold for over $200,000.

“If TON has been able to achieve these results, imagine how successful Telegram with its 700 million users could be if we put reserved @ usernames, group and channel links for auction,” he said.

But Durov isn’t stopping there. “Other elements of the Telegram ecosystem, including channels, stickers or emoji, could later also become part of this marketplace,” he added.

Paying for usernames isn’t new. Over half a million people have paid for usernames on Ethereum through the Ethereum Name Service (ENS), according to Non Fungible’s market tracker.

It’s not just a web3 phenomenon either. It’s becoming harder and harder to get the desired username on platforms like Twitter and Instagram and some people are going to great lengths to obtain them. Tips and tricks online suggest everything from asking the platforms to reassign unused usernames to elaborate copyright schemes.

Others goes even further. Some services will even obtain social media names through hacking the original owner.

Telegram began exploring blockchain solutions and working on the then-named Telegram Open Network in 2018. Later that year, it raised $1.7 billion in a private sale of TON tokens.

In October 2019 the U.S. Securities and Exchange Commission accused it of conducting an unregistered securities offering and sued Telegram. In 2020, under pressure from regulators, Telegram abandoned the project.

Open source developers continued to work on the project. In 2022, it rebranded as The Open Network with a live, fully operational mainnet.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Interpol said it will offer training in its own online world for policing the metaverse.

The Interpol metaverse will allow registered users to tour a virtual copy of the Interpol General Secretariat headquarters in Lyon, France, it said in a news release. Users will be able to interact with other officers via their avatars and take immersive training courses in forensic investigation and other policing capabilities.

It has formed an expert metaverse group to “represent the concerns of law enforcement on the global stage — ensuring this new virtual world is secure by design.”

Interpol’s commitment demonstrates a growing anxiety about the policing of online spaces, which are increasing in popularity as technology develops. By 2026, one in every four people will spend at least an hour a day in the metaverse to work, study, shop and socialize, according to technology research firm Gartner.

“The metaverse has the potential to transform every aspect of our daily lives with enormous implications for law enforcement,” said Madan Oberoi, Interpol’s executive director of technology and innovation, in a statement. “But in order for police to understand the Metaverse, we need to experience it.”

Interpol said that a list of possible offenses may include crimes against children, data theft, money laundering, financial fraud, counterfeiting, ransomware, phishing and sexual assault and harassment. It added that these may present challenges as not all acts that are criminalized in the physical world are considered crimes in the virtual world.

“For many, the Metaverse seems to herald an abstract future, but the issues it raises are those that have always motivated Interpol — supporting our member countries to fight crime and making the world, virtual or not, safer for those who inhabit it,” said Interpol Secretary General Jürgen Stock in a statement. “We may be entering a new world, but our commitment remains the same.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The price of Axie Infinity Shards (AXS), the primary token of blockchain-based game Axie Infinity, has declined sharply ahead of a high-profile token unlocking. AXS had declined by more than 12.5% over the past 24 hours, as of the time of this writing.

The sell pressure may be the result of traders attempting to front-run a significant and scheduled unlocking for investors. Some 21,543,000 AXS tokens are unlocking on Oct. 25, according to according to data platform TokenUnlocks. Advisors will unlock 2,501,750 AXS (~$22M) and private sale participants will unlock 1,997,500 AXS (~$17.5M).

If every token were to be sold, hypothetically, advisors and private sale participants would bring an estimated selling pressure of 4,484,668 AXS (~$39M) to the market. The assumption that recipients will sell stems from the fact that, even at the current price of $8.70 per Axie Infinity Shard, private sale investors would be up over ~100x — despite Axie Infinity’s token being down roughly 95% from its all-time high price of roughly $166.

AXS/USDT on Binance. Source: TradingView

It may be unrealistic to assume that every single newly unlocked token will be sold, of course. The co-founder of Axie Infinity and its parent company Sky Mavis claimed on Twitter that the high-profile unlock would cause “misinformation” — primarily, that “tokens unlocked” would be confused with “tokens in circulation.”

“Most of the unlocked tokens from staking, p2e, ecosystem fund, and advisors have to this day been left in the vesting contract or multi-sigs,” they explained. “The same goes for the upcoming 22M unlock,” they continued. “Even if they are unlocked, they follow a separate issuance schedule which is more flexible and can be tailored to user numbers.” 

They also claimed that Sky Mavis “will not be selling a single token of our upcoming unlock.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.