Yes, I get it. Just saying the words “token unlock” can make any one of you shiver. We've all seen the headlines: massive unlocks, price dumps, whales getting richer while the rest of us hold the bag. What if I told you that unlocks, done right, could be a force for good in the crypto space? Imagine if they were benefiting communities and not just making the rich richer.

It's time to flip the script. Here’s how crypto unlocks can tangibly help you and your constituents, rather than just enriching the whales.

Unlock Liquidity, Unlock Opportunity?

Think about traditional finance. How do corporations raise capital? Usually by diluting current shareholders, as is done when new shares are issued. We put up with this because, in theory, it promotes growth and innovation. Let’s stop being so bearish about crypto unlocks. So instead of fearing the price drop, let’s focus on all the ways this technology can do good.

This week, we’re seeing big unlocks on all of these extremely cool projects. They are Aptos (APT), WhiteBIT Token (WBT), StarkNet (STRK), Immutable X (IMX) and Arbitrum (ARB). The narrative is always the same: brace for impact! Let's consider something unexpected: What if these unlocks are not just about supply and demand, but about distribution of power?

Fund DAOs, Fuel Decentralization

Envision a future in which these unlocks are intentionally funneled into DAOs for culture. Instead of flooding the market and leading to a detrimental sell-off, we’ll tap into a small percentage of this unlocked supply. Together, let’s get those tokens pointed towards more formidable community-led projects. These initiatives would include everything from creating new functionality and tools to underwriting strategically aligned marketing campaigns and education initiatives. This is how you start to build out a real sustainable ecosystem, not some pump-and-dump fantasy.

Think about it: Aptos, for example, is distributing some of its unlocked tokens to "community initiatives." All of that’s a good start, but we require a lot extra transparency and accountability. How are these initiatives chosen? Who benefits? Are these programs really intended to be community driven, or is this just a pretense to allow the awarding of payola to insiders. These are the right questions to be asking.

Reward Real Contributors, Not Just Insiders

Unfortunately, early investors and team members are frequently the only winners of token unlocks. We want to ensure that while rewarding early adopters is valuable, it does not happen on the backs of the community. Unlocks should additionally help incentivize continued contributions.

Consider this unexpected connection: Imagine a system where developers, content creators, and community moderators are rewarded with unlocked tokens based on their contributions to the project. This would do much more than just incentivize participation — it would create an alignment of interests across the whole community. We like to think of it as a decentralized ESOP – employee stock option plan – but for all users.

Increase Accessibility, Reduce Whale Dominance

In the end, one of the largest issues in crypto is the wealth redistribution. A limited number of whales typically represent a large percentage of the token supply. This concentration provides them with inordinate power over the project. Unlocks provide a solution to this concern by making tokens more accessible to a wider range of investors — particularly smaller ones.

Through unconventional means, you can earn tokens at equitable prices. These run the gambit including airdrops, community staking programs, and decentralized exchanges (DEXs) aimed at smaller investors. Projects like StarkNet demonstrate just how thrilling the promise of decentralization strategies can be. The devil is truly in the details of how these strategies are carried out. We need to make sure that these strategies go beyond tokenism and window dressing.

Demand Transparency, Drive Positive Change

At the end of the day, the antidote for token unlocks’ good and bad foreshadowing is transparency combined with active community participation and discussion. We, as a project community, need to hold project teams accountable to a higher standard. We need to ask:

  • How will the unlocked tokens be distributed?
  • What percentage will go to early investors, team members, and the community?
  • How will the community be involved in the decision-making process?
  • What measures are being taken to prevent market manipulation?

By demanding answers to these questions and ensuring project teams are held accountable, we can help build a more equitable and sustainable crypto ecosystem. The next round of unlocks, in particular the very volatile WhiteBIT Token (WBT) unlock might be the catalyst for this to happen.

Stand up to keep the whales from getting any richer. Demand a seat at the table. Advocate for transparency and community involvement. Together we can help change the story and make token unlocks a positive community-empowering opportunity. The future of crypto depends on it.

As always, explore these opportunities on your own, tread lightly in the world of crypto, and don’t forget to do your own research. Do not let misplaced fear blind you to the likely and positive opportunities this change can bring.