Taiko’s $47M Token Unlock Looms Large Amid Market Caution

Taiko, the Ethereum-equivalent ZK-rollup protocol, is preparing for a major milestone in its token distribution. On June 5, 2025, approximately 81.55 million $TAIKO tokens will unlock — worth an estimated $47 million at current prices. This release represents a significant 69–71% of the current circulating supply, setting the stage for what many analysts describe as a high-risk period for the token’s price stability.

What’s Happening on June 5?

At 8:00 PM CST (6:30 PM IST) on June 5, Taiko will initiate a “cliff unlock,” a one-time release of a large portion of vested tokens. This event comes exactly one year after the protocol’s Token Generation Event (TGE) and marks the end of the initial 12-month lock-up for early stakeholders.

The 81.55 million tokens being released are likely tied to allocations for early investors and Taiko Labs team members, who together account for over 20% of the total supply. Following the unlock, these holders will continue to receive the remaining 75% of their allocations linearly over the next three years.

Key Tokenomics at a Glance

• Total Supply: 1 billion $TAIKO
• Pre-Unlock Circulating Supply: ~117.5 million
• Unlock Amount: ~81.55 million tokens
• Vesting Model: 4-year schedule with 1-year cliff, 25% initial release, 75% linear

Market Risks: Price Volatility Expected

Large unlock events often coincide with increased volatility, especially when the unlock size is substantial relative to the token’s circulating supply. In this case, more than two-thirds of the liquid supply will hit the market at once.

Several observers on crypto forums and social media platforms have raised concerns over potential sell-offs. Some analysts suggest this event may trigger “structural selling pressure,” particularly from venture capital (VC) participants exiting their positions. Others recommend caution, with some even advising short-term exits ahead of the unlock.

Historical Context and Market Sentiment

This isn’t Taiko’s first unlock, but it’s by far the most impactful. Earlier releases in September and October 2024 unlocked about 12 million tokens each, accounting for roughly 15% of the circulating supply at the time. These smaller unlocks caused brief price dips but didn’t significantly destabilize the market.

However, the June 2025 unlock is different in scale and sentiment. With $3.3 billion worth of token unlocks scheduled across the crypto space this month (including Sui, LayerZero, and ZKsync), market-wide volatility may intensify, amplifying the impact of Taiko’s release.

What It Means For You [NFA]

A large token unlock often brings volatility. With 70% of $TAIKO’s circulating supply set to release, short-term price drops are possible due to increased selling.

If you’re a long-term holder, this may not matter much. If you’re trading, be prepared for fast market moves — both down and up.

Stay calm, watch the charts, and don’t make emotional decisions. This isn’t financial advice — just context.