TLDR
- UXLINK price dropped 15% as community prepares for an early unlock vote on October 4.
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Early unlock vote could impact liquidity and exchanges, but risks token dilution.
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UXLINK’s compensation plan aims to resolve post-hack issues, offering faster recovery.
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UXLINK faces 62% losses over the past month as traders adjust positions before the vote.
UXLINK’s price took a sharp 15% dip on October 3, as the community prepares for a pivotal governance vote regarding early token unlocks. The vote, set for October 4, will decide whether a portion of team and treasury tokens should be unlocked ahead of their original 24–48 month schedule to compensate victims of a September 2025 hack. The proposal comes after the hack drained an estimated $30 to $44 million, according to security firms PeckShield and Hacken.
The decision could significantly impact UXLINK’s trading and future liquidity, with a potential increase in circulating supply, leading to concerns about market dilution. As of now, the token is trading at $0.120, down 15% in the past 24 hours and 62% in the last month. The price drop has coincided with a surge in trading volume, which increased by 612%, indicating heightened market activity ahead of the vote.
UXLINK Early Token Unlock and Compensation Plans
The primary goal behind the early token unlock vote is to accelerate the compensation process for users affected by the hack. The funds for this compensation will come from the recovery of hacked assets and a portion of the tokens from exchanges, teams, and the treasury. UXLINK has already deployed an audited contract with a fixed supply and launched a migration portal to ensure a smooth swap process for affected users.
However, the early release of tokens raises concerns about possible dilution. If the vote passes, 5-10% of the token supply could enter circulation earlier than planned, which might stabilize the sentiment and support relisting efforts. The move is designed to enhance liquidity, which could prompt exchanges to relist UXLINK, potentially reversing the token’s recent downtrend.
While some investors view the early unlock as a necessary step for faster compensation, others worry about the long-term effects of increased circulating supply. This uncertainty is reflected in the increased trading activity, particularly in derivatives markets, with a 733% surge in derivatives volume and a 15% decline in open interest, suggesting traders are reducing exposure.
Community Sentiment and Vote Outcome
As the early token unlock vote approaches, community sentiment remains divided. Many holders are eager for compensation and the potential for UXLINK to return to major exchanges, while others fear the risk of dilution outweighs the benefits. The voting outcome will play a crucial role in determining the token’s short-term price movement and liquidity.
If the proposal is accepted, it may lead to a short-term dip in the token’s value due to the increased supply. However, if the unlock accelerates the compensation process and facilitates exchanges resuming trading, the vote could pave the way for a potential recovery.
Analysts suggest that UXLINK could experience a rebound similar to other tokens post-hack, depending on the effectiveness of the swap and compensation plans.
Long-Term Outlook for UXLINK
Despite the immediate volatility surrounding the early unlock vote, UXLINK’s long-term outlook will likely depend on how well the team handles the aftermath of the hack and the ongoing development of the ecosystem.
If the early unlock vote passes and UXLINK can restore liquidity and regain trust among its holders, there could be potential for stabilization in the coming months.
However, the uncertainty of the vote’s outcome, coupled with the risk of further dilution, leaves the market cautious. For UXLINK to regain its former value, it will need to prove that it can recover from this crisis, compensate users fairly, and position itself as a reliable project in the long run.
