Steemit Crypto Academy Contest Season 11 Week 6 - "Token Unlock

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Assalamualaikum to Everyone Here. Welcome to my last participation in last week 6 of Steemit Engagement Challenge Season 11. It was really great experience to learn new things and use rewards for power up to strengthen our Steemit wallet through this productive platform. Best wishes for new season along with new themes.

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Use your own words to define what an unlock token is? And in your opinion, why do some projects choose to lock a quantity of these tokens?

Accordingly to my understanding about the given theme of engagement challenge, Unlock Tokens means, A certain type of digital asset or cryptocurrency token may come with specific criteria on use or transfer for a fixed time duration after its generating or distribution. These specific set of criteria are often order in place to achieve target goals, such as promoting long-term commitment to the project, limiting flash sales, or ensuring a increased or decreased flow of tokens to the market.

some projects choose to lock a quantity of these tokens for different purposes

• With respect to Blockchain Network Security concerns locking tokens are used effectively.

• Crypto Projects use locking tokens for rewards distributions among in trader's and stakeholders

• Token lockups can facilitate in maintaining and balancing the price stability and preventing unexpected drops in the token's value by preventing massive amounts of tokens from flooding the market at once.

Hence , For various factors behind of it , Sort of running Projects frequently decide to lock defined of their tokens. Projects deliberately use for unlocking tokens with locking features to achieve a number of goals related to commitment, stability, distribution, security, and alignment of stakeholder interest as well.

Clearly explain the method(s) by which these tokens are locked and then how they are released.

Depending on the stakeholder or trader and blockchain context, tokens in terms of cryptocurrency or blockchain technology can be "locked" and "released" through different sort of techniques.Some of them are going to share with you as mentioned below 👇 as .

Methods use for Locking Tokens	Methods use for Releasing Tokens
Tokens may be locked for a specific amount of time. On blockchain platforms like Ethereum, smart contracts are frequently used to implement this.	According to the terms of the smart contract, tokens that have a time lock are automatically released when the relevant time condition is overed.
When stakeholders engage in staking, some tokens are locked.After a predetermined amount of unstaking time, users can often unlock their staked tokens.	A predetermined void time must elapse before the wagered chips are released. The bet cancellation procedure is initiated by the user and after the waiting period the tokens are eligible for withdrawal.
In order to align the interests of token holders with the long-term viability of the project, tokens are often locked up for a specific period of time before being gradually released over the time.	Tokens that are subject to time schedules are released gradually over time in accordance with the parameters of the schedule. Any remaining locked tokens will be unlocked and made available to the holder after the grant period has expired.

What is the impact of an unlock token on the price of a crypto and how is it monitored? Give an example.

Analysing the impact of an unlocked token on the price of a cryptocurrency requires examining market dynamics, trading activities, and user access on different time durations. During token unlocking, it is important that investors and other stakeholders are informed and prepared for possible price fluctuations.

In the context of Bitcoin Crypto Tokens , Which are now 25,854$ can seen in sharing screenshot graph taken by Gemini.Com where in we can see the price fluctuations in different time durations.

Here's with we can examine pricing graphs before and after the unlock to spot any notable price swings or trends.We can analysis and monitor the $26,000 Bitcoin Crypto Tokens are fluctuates down words in the graph. Around the time of unblocking, a sharp drop in trade volume may signal a drop in market activity and significant price fluctuations.

Do you think that all cryptocurrency ecosystems have developed this kind of lock? Steem.Inc Among them? If yes or no, do you think it is or will be beneficial if used or added to its ecosystem? For what?

While token lock procedures are not present in all cryptocurrency ecosystems, they can be useful if used correctly to improve stability, governance, and long-term commitment. The choice to incorporate or use such procedures must be consistent with the project's goals and the will of the community.

^UnSplash

Steem Power (SP) in the Steem blockchain ecosystem means tokens that are staked and locked for a predetermine time duration and can be withdrawn or switched off over specific time. Because users with higher Steem Power have more influence over content governance and management, this lock-in procedure was created to encourage long-term co-operation to the platform.

List the risks and benefits of unlock tokens in a simple and understandable way.

While are going to unlock tokens for different purposes we come to face some benefits and risks. There are some of them are mentioned below 👇 as

Benefits	Risks
Easily accessibility to material, features or services is simple with unlock tokens as you avoid difficult procedures.	Token purchases can be pricey, and if you're not aware or careful, you might end up spending more than you expected.
By gaining access to particular features or interesting objects, they let you customized and modify your experience.	Hackers may target tokens. Your digital assets or personal information could be at risk if your token is taken.
Some networks reward users with tokens, encouraging them to engage more and accumulate tokens for later usage.	Some argue that token systems can be unfair because they favor those who have the funds to purchase tokens over those who cannot.

Hence, Token Unlocking is a a key idea in the cryptocurrency and blockchain worlds.And its significance can vary depending on the specific token and the guidelines set by its generators or blockchain context.

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^{I would like to invite my Steemit fellows @eliany @graceleon @irawandedy for taking part in very informative theme of the engagement challenge. Thanks for valuable feedback}

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