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.