The circulating supply of Worldcoin is set to significantly decrease!

Indra55

Worldcoin, a cryptocurrency project co-created by OpenAI's CEO Sam Altman, gained rapid market popularity after its launch in late July, with the token price briefly surpassing $3.
On the 10th, Worldcoin issued an announcement summarizing recent important information and milestones. The official statement mentioned that by the end of November, the number of users globally possessing WorldID through iris authentication surged to over 2.5 million. As public interest in WorldID grew, Worldcoin completed the transition of rewards from the Worldcoin (WLD) operator from USDC to Worldcoin.
Additionally, Worldcoin announced that it would terminate previous loan agreements with five market makers on December 15 and had finalized a new agreement for a total of 10 million WLD with these market makers.
The five market makers are required to return 75 million WLD by December 15. Initially, Worldcoin had borrowed a total of 100 million WLD from these five overseas market makers in the early stages of its launch, aimed at providing liquidity. It was stipulated that they would ""return the borrowed tokens"" or ""buy them at a price of $2 to $3.12"" three months later. The initial allocation to the market makers was as follows:

Wintermute: 28 million WLD
Amber Group: 24 million WLD
Flow Traders: 24 million WLD
Auros Global: 12 million WLD
GSR Markets: 12 million WLD
However, on October 24, Worldcoin decided to extend the loan agreement's expiration date to December 15, 2023, and simultaneously reduced the total loan amount to 75 million WLD. According to Dune's Worldcoin circulating supply chart, between October 24 and 26, the five market makers had returned 25 million WLD to Worldcoin.
According to the current loan agreement, the five market makers will be required to return a total of 75 million WLD on December 15, or they can choose to purchase tokens up to the full loan amount.
""Therefore, the circulating supply of Worldcoin may decrease by as much as 75 million WLD on December 15, depending on the number of tokens the market makers choose to return instead of purchasing.""
Further borrowing of 10 million WLD is expected as the original loan agreement concludes on December 15. Worldcoin also announced a new loan agreement with these five market makers for a total of 10 million WLD, effective from December 16 for six months.
""As a result, the circulating supply will increase by 10 million WLD on December 16. After six months, each entity must fully repay its loan and has no right to purchase any WLD. Overall, the net impact on the circulating supply of WLD depends on the number of tokens the market makers choose to purchase on December 15 in these two events (the end of the previous agreement and the start of the new agreement).""
WLD experienced an 8% drop in price. While the WLD price reached a high of $2.72 earlier today, it faced a significant decline of over 8% amid a broader downturn in the cryptocurrency market, closing at $2.49 before the deadline, marking a 3.7% drop in the last 24 hours.
If the five market makers choose to return all 75 million WLD on December 15, combined with the newly borrowed 10 million WLD, the circulating supply of WLD is expected to decrease by a maximum of 65 million tokens this week, surpassing half of the existing circulation. Observers are eagerly awaiting the market makers' decisions after the expiration of the agreement on the 15th and how it will impact the circulating supply and price of WLD.

Kahn332

It seems there has been a bit of an issue.

Jafar224

This significant reduction is something that needs attention as well.