đ TIP-56 Unlocks 8% More $MAGIC â Will It Impact Price?
TIP-56 has officially passed, unlocking 26.9 million MAGIC tokens from TreasureDAOâs ecosystem fundâan 8% increase in circulating supply. Understandably, many holders are wondering: will this affect the price? The short answer is, probably not in the way most fear. These tokens arenât being dumped on the market. Instead, theyâre being made available for strategic, market-neutral diversification through Flowdesk, a system TreasureDAO has used for years without disrupting price action. Even on days with $500 million in trading volume, their diversification efforts have been a drop in the bucket.
Importantly, no new tokens are being minted. This proposal simply accelerates access to existing tokens that were previously locked under a linear schedule until 2027. The rationale is clear: the DAO wants flexibility. Their stablecoin runway is secure until August 2026, but unlocking these funds now gives them the ability to act during favorable market conditions rather than being stuck waiting through bull and bear cycles.
As for price predictions, analysts remain optimistic. BitScreener sees MAGIC potentially reaching $2.39 by the end of 2025, while CoinLore forecasts highs up to $3.07. These projections suggest that the market isnât overly concerned about the unlock. In fact, many view it as a sign of maturityâTreasureDAO is evolving from rigid early-stage rules to a more agile, strategic approach.
So, while the circulating supply is increasing, the way itâs being handledâthrough controlled, transparent diversificationâmeans the impact on price is likely minimal. If anything, it strengthens the DAOâs financial position and prepares it for long-term growth. Keep an eye on quarterly financials for updates, but for now, MAGIC holders can breathe easy.
