$XDEFI Holders Agree To 1-Year Token Locks

Decentralized self-custody crypto wallet Ctrl Wallet announces a major liquidity initiative to enhance participation within its ecosystem.

Decentralized self-custody crypto wallet Ctrl Wallet has announced a major liquidity initiative to enhance participation within its ecosystem.

The initiative will see the top holders of $XDEFI (Ctrl’s native token) lock their tokens for a 12-month period into AMM liquidity pools on Uniswap. This adds up to 76.9 million of the circulating liquidity of the $XDEFI token or 32% of the total supply.

The announcement also confirmed new tokenomics updates including an updated unlock schedule for the deposited tokens and new revenue-generating features on Ctrl Wallet.

Emile Dubié, CEO and co-founder of Ctrl Wallet believes the initiative shows the “strong commitment and belief” the largest investors and holders of $XDEFI have in the project.

“This initiative demonstrates the unwavering belief we have in Ctrl’s potential,” added Emile. “By committing such a significant portion of tokens to liquidity provision, we are not only supporting the token’s stability but also laying the groundwork for future growth.”

As alluded to, the top token holders of $XDEFI agreed to provide liquidity to Uniswap AMM pools with 76.9 million tokens to facilitate the DeFi ecosystem. This amounts to 50% of the current circulating supply or 32% of the total $XDEFI circulating, as of writing.

Top holders of the utility token include Ctrl Wallet’s largest investors, including Delphi Digital, Mechanism Capital and Morningstar Ventures, in addition to its two co-founders and the company’s treasury.

The self-custody crypto wallet serving over 2,100 blockchain networks aims to reduce price volatility, increase trading depth, and attract new investors to the ecosystem. Additionally, the year-long commitment will significantly deepen liquidity, incentivize long-term participation in the project and reduce potential sell pressure.

The tokens will be held starting September 2024 till September 2025.

The announcement also confirmed the new unlock schedule, six months following the lock-in in March 2025. The unlock is a milestone-based withdrawal schedule in quarters. The first quarter will be unlocked after March 2025 once $XDEFI reaches a US$100M fully diluted valuation (FDV), with another quarter released at US$200M FDV, and a quarter at US$300M FDV, and the final quarter when $XDEFI reaches US$500M FDV.

To incentivize maintaining liquidity even as milestones are met, contributors – excluding the project treasury – will receive a 10% APY on their deposited tokens.

The liquidity provision commitments were made two months following the announcement of the planned migration from $XDEFI to $CTRL, set to be completed in the coming weeks and the beta access launch, earlier this month. This rebranding effort will be accompanied by a shift to a buy-and-burn model, with 75% of all revenue generated in Ctrl Wallet used to purchase $CTRL tokens on the open market, which will then be burned.

Notwithstanding, Ctrl Wallet also announced new revenue-generating features including in-wallet quests, a launchpad, and expanded Gas Tank functionality. Such additions are expected to drive increased usage and revenue, directly benefiting $CTRL token-holders through the buy-and-burn mechanism.

Disclaimer: 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.