Hello members of the Carry Community!
Following our recent announcement on Carry Token (CRE) buy-back plan, Carry team has made the following decisions to protect the investors.
- Changing Private Investors’ Vesting Length
- All private investors vesting period will be extended from 6 months to 12 months.
2. Delaying Carry’s Token Allocation
- The unlock schedule of the tokens for market activation, partner program and reserve will be changed as following. Less tokens will be distributed in the first few months and gradually more tokens will be released.
3. Changing Unlocked Tokens’ Distribution Schedule
All remaining tokens will be unlocked daily instead of once every month, except for the pre-sale tokens’ distribution.
According to the change, the new distribution schedule will be as follows.
For the detailed monthly unlock schedule, please review the following explanation.
D+2 months unlock schedule
- Before : 900 million CRE unlocked on July 15th
- After : 140 million CRE unlocked on July 15th, 15 million CRE unlocked everyday from July 16th to August 13th
D+3 months unlock schedule
- Before : 900 million CRE unlocked on August 14th
- After : 140 million CRE unlocked on August 14th, 15 million CRE unlocked everyday from August 15th to September 12th
D+4 months unlock schedule
- Before : 900 million CRE unlocked on September 13th
- After : 12 million CRE unlocked everyday from September 13th to October 12th
Carry team believes this measure increases the likelihood of price stabilization.
(The blue line indicates cumulative circulation supply in the market before the change, and the red line indicates after the change)
The volume of distribution for D+6 months goes down
The volume of CRE tokens in the market by 6th month will be reduced by 29%, from 4.9 billion to 3.5 billion, and we expect to stabilize the price as a result.
The lock-up volume ratio significantly reduced
At the first token distribution last month, the unlocking token’s volume (900 million) was almost three times higher than the existing tokens (310 million) in the market. The impact of sudden increase of the volume resulted in the decline of token price.
For the second month distribution, the lock-up volume ratio is 0.74, which is much lower than the first month (2.91) even before the change. After the change, we reduced the ratio to 0.49 to stabilize the tokens in the market.
We will continue to keep the rate low until the sixth month, so that the market will keep stabilized.
Positive impact of unlocking daily to the market
According to the original plan, a large volume of tokens are released in the same day, causing a huge impact to the market, as shown in the red line on the graph below.
However, after the change, reducing the initial distribution volume and adjusting the schedule to daily unlock, the distribution volume in a day will be significantly reduced and lessen the market impact, as shown in the blue line below.
Considering the average daily trading volume of CRE on Upbit is about 5.9 billion (yellow lines on the graph), we strongly believe that there should be a huge difference between daily unlocking 15 million and unlocking 900 million once a month.