Unicrypt is an innovative blockchain platform that resolves some of the most pressing issues in decentralized finance (DeFi). The project protects investors from exit scams where new DeFi projects suddenly pull the liquidity out of their Uniswap pools leaving investors counting enormous losses.
Unicrypt offers three primary services, including liquidity lockers, initial liquidity offering and Farms V1 (Farms V2 coming soon). The services are available on 6 AMM– Uniswap, SushiSwap, PancakeSwap, JulSwap, HoneySwap and QuickSwap spread across four blockchain networks- Ethereum, Binance Smart Chain, xDaiChain, and Polygon.
In January 2021, Unicrypt completed its migration from the former UNC token to UNCX. The platform employs a dual token system encompassing UNCL and UNCX. UNCX is a utility token that functions as a deflationary governance tool and a means of paying fees in the Unicrypt ecosystem.
The platform is set to introduce additional services, including token vesting- an innovative service that will enable crypto projects to lock their tokens and set a release strategy. Here’s an in-depth insight into Unicrypt’s innovative service-token vesting.
What is Token Vesting?
For starters, most blockchain projects host Initial Coin Offerings (ICOs) or a crowdsale event to release their tokens to the general public to raise funds to support the project in many ways, including development and marketing. Usually, anybody who wishes to support the project can participate in the crowdfunding by purchasing the project’s tokens using Bitcoin or Ethereum.
At the end of the crowdfunding period, investors who participated in it received tokens corresponding to how much they bought. After the Initial Coin Offering (ICO) or crowdfunding events, it’s common to see massive sell-offs where early investors or even the project’s team end up selling their tokens after the cryptocurrency hits the market. This leads to excess supply causing a massive drop in the token prices.
Token vesting is necessary to prevent such occurrences and boost confidence in the potential participants of a token sale. The process involves locking up certain amounts/percentage of tokens for a particular period, usually one or two years. For instance, if a startup creates a cryptocurrency project and launches it through an ICO or crowdfunding event, they may set up a lockup period.
During the lockup period, no team members, advisors, partners, or others contributing to the development of the project can access their tokens until the lockup period expires. The lockup tokens/coins are not part of the circulating supply. The team may also gradually release the locked up tokens, maybe once a month/quarter/year during the project progress.
In essence, the processing of locking and releasing tokens is known as vesting. Token vesting lowers market price manipulations and indicates that the team is highly interested in the project and will continue working on its development to uphold token value.
Unicrypt Token Vesting
Unicrypt is set to launch a token vesting service following the completion of its new webpage. Unicrypt token vesting service will be made available on the four chains the platform is currently deployed, i.e. Ethereum, Binance Smart Chain, Polygon and xDaiChain among others.
The launch of the token vesting service will strongly complement the ILO launchpad platform and liquidity lockers provided by the Unicrypt ecosystem providing absolute convenience and value.
Token vesting is the process of locking and releasing tokens after token conditions have been met. It comes in handy to prevent market damping and market manipulation, ensuring tokens retain their value over time. Besides, token vesting shows that the crypto team is highly interested in a particular project boosting investors’ confidence.
Unicrypt’s upcoming token vesting service will be a great addition to the liquidity locker and the ILO launchpad provided by the platform enabling new crypto projects to lock their team tokens and set a release strategy.