Aleksander Larsen, the co-founder of the famous play-to-earn (P2E) gaming platform Axie Infinity, said that Sky Mavis, the software development company behind the project, would not sell its tokens (AXS), after the unlocking event on October 26.
Axie Infinity to Unlock More Tokens Soon
While sharing the news on Twitter, Larsen noted that there is some misinformation on the internet regarding the AXS token as the company is planning to release an additional 21,543,000 AXS worth around $233 million in the market.
The assets will be unlocked upon the expiration of its vesting period on October 24.
The term vesting period is a process in which the developers freeze a certain amount of their crypto over time and later use the assets to compensate users who contributed to the project’s development.
The new tokens will be distributed among advisors ($25 million), early investors ($20 million), and Axie Infinity’s team ($57 million). Half of the 21,543,000 AXS will also be shared as staking and P2E rewards, while some will serve as part of the ecosystem funds.
The tokens represent approximately 8% of the total supply of the assets, raising fears among the crypto community as many often sell off the assets upon receipt, creating room for price dumps.
The Axie Infinity Co-founder explained that the token unlocking is different from the tokens in circulation, which are available for trading, noting that there could be 151 million AXS in the market, but in truth, there will only be 102 million in circulation.
Larsen further highlighted that this happens because, if unlocked, the new AXS will follow a similar path to the previously launched tokens from staking, P2E, advisors and ecosystem funds left in the vesting contract or multi-sigs after the release.
The new tokens will follow a separate issuance schedule tailored to user numbers at launch.
Business as Usual
Larsen said the upcoming event would be business as usual, except for the final unlock of two million tokens in the vesting pool dedicated to private investors.
He also stated that Sky Mavis would not sell its portion of the new tokens because the company likes the assets.
According to its treasury, the firm recently staked a significant portion of AXS from its 21% stakes of the total asset’s supply to earn incentives, just like other investors.
