$MAGIC

This proposal for TIP-56 aims to release the tokens of the previously established ecosystem fund (which were gradually unlocked over months in a linear fashion) immediately.

Summary in simple words:

What was previously?

The tokens of the ecosystem fund were gradually unlocking each month, and this was to be completed by 2027.

What will happen now?

If this proposal is approved, all unlocks will occur immediately and will be available to core contributors at once.

This means that approximately 27 million (26,924,099) MAGIC tokens will be added to the market immediately, which will increase the current circulation by 8%.

Why?

Because the market condition for the token and the financial situation of the team have changed.

The old restrictions are no longer necessary because:

The team's stablecoin runway is until August 2026, so there is no urgent need for funds now.

Previously, the community was assured that a sudden influx of tokens would not occur in the market, but now the market is larger and more stable.

The team wants to be more flexible to better manage its operations over time.

Will new tokens be created?

No, no new tokens will be created, only the existing ecofund tokens will be unlocked immediately.

What will be the impact?

The number of tokens in circulation will increase by 8% (which can be considered good or bad depending on the perspective of the users).