Concerns Are Raised by the Transfer of 1.4 Billion Polygon Tokens (Matic) From the Project’s Vesting Contract


In contrast to a tweet by a Blockworks researcher, Nailwal polygon founder stated that the funds were unlocked over a year ago.

Sam Martin, author and researcher at Blockworks, recently announced that Ethereum Layer-2 scaling platform Polygon had released a massive amount of MATIC tokens from its vesting contract.

According to Martin, yesterday, the Ethereum L2 scaling solution unlocked 1.4 billion MATIC tokens from its vesting contract.

“1.4 billion MATIC tokens, or 14% of the total supply, have been released from the vesting contract over the past hour,” Martin said.

The author of Blockworks also shared a screenshot of blockchain transactions displaying the token unlock. According to the screenshot, the funds were transferred from the Polygon vesting contract to various project sectors in nine separate transactions.

Read also: Mercedes-Benz Partners With Polygon (Matic) To Launch a Data-Sharing Platform

Details on the Movement of the Funds

Seven of the nine transactions each involved the transfer of 25 million MATIC tokens. The remaining two were the most important, with 618,304,816 MATIC (618.3 million MATIC) and 593,304,816 MATIC (593.3 million MATIC) tokens, respectively.

According to the blockchain transaction, approximately 1.39 billion MATIC tokens were moved from the Polygon vesting contract yesterday, accounting for nearly 14 percent of the token’s total supply.

Martin sent out another tweet, asking his followers and the Polygon team to explain where the funds are being transferred.

Polygon’s Founder Responds to Investors’ Concerns

The tweet drew much attention from the cryptocurrency community, particularly Polygon’s core supporters.

Many Polygon investors appeared unconcerned by the news, believing that the project’s team would not do anything to jeopardize their investments.

However, some critics have already used the tweet to troll Polygon, urging investors to sell their MATIC positions.

Interestingly, Polygon founder Sandeep Nailwal quickly responded to the tweet before it wreaked havoc on the price of MATIC.

Related article: Polygon Releases the First Ethereum-Compatible Zero-Knowledge Scaling Solution, the First EVM-Equivalent ZK L2

The tokens in question, according to Nailwal, were not recently unlocked, as stated by the Blockworks researcher. Instead, according to Nailwal, the tokens were unlocked more than a year following the vesting contract, and the planned move was planned.

In response to Martin’s inquiry about where the funds were sent, Nailwal stated that the nearly 1.4 billion MATIC were allocated to various project segments, such as Foundation Treasury, Staking, and so on.

“This was a planned movement from the tokens which as per vesting have been unlocked 1 year back. These are staking, foundation treasury etc.”

He shared a link to a Telegram post by Polygon while teasing investors with the news that a big announcement about fund allocation will be made later today.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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