Status proposes unlocking 700M SNT from Community Fund to seed L2 mainnet
Status Network has submitted a governance proposal asking SNT holders to unlock up to 700 million SNT (from the Community Fund, which holds 29% of total supply) to seed liquidity and support the upcoming Status Layer‑2 mainnet launch. The proposal would bridge the activated SNT to Status L2 via pre‑deposit vaults and allocate tokens as follows: ~300M SNT to an initial pre‑deposit vault shortly after it opens; ~150M SNT pre‑deposited in early Q1 2026; up to ~25M SNT reserved for liquid rewards on L2 depending on traction and TVL; and the remaining tokens used to seed DEX and lending liquidity, incentivize builders and apps, and meet exchange/integration liquidity requirements. After unlocking 700M SNT, the proposal also migrates all remaining Community Fund tokens to a new multisig with upgraded custody and continued community oversight; any further movements would require community approval. Voting is live on Snapshot: SNT holders can vote YES to unlock funds and approve the multisig migration, or NO to keep the Community Fund inactive. The team frames this as a limited, purpose‑specific activation for launch activities and the final governance step before transitioning from testnet to mainnet. Primary keywords: Status Network, SNT, Community Fund, L2 launch, liquidity. Secondary/semantic keywords: pre‑deposit vault, DEX liquidity, multisig migration, Snapshot vote.
Neutral
Unlocking up to 700M SNT from the Community Fund for concentrated, launch‑related liquidity provision is a significant on‑chain event that increases circulating tokens on Status L2 and supplies DEX/lending pools. Short‑term price impact could be mixed: market participants may view the allocation as a positive signal of product readiness and expected on‑chain activity (supportive), while the sudden availability of a large token tranche can create sell pressure or increased volatility (negative). The proposal’s constraints — defined allocations, staged pre‑deposits, reserved reward pool, and migration of remaining funds to a new multisig with community oversight — reduce uncertainty and the risk of an uncontrolled dump, which tempers bearish pressure. Over the medium to long term, successful L2 launch traction, TVL growth, and productive use of the liquidity (DEX/lending depth, builder incentives, exchange listings) would be bullish for SNT. Conversely, weak adoption or rapid selling of allocated tokens would be bearish. On balance, because the move is tightly scoped and governed, the immediate market reaction is likely neutral: supportive fundamentals are balanced by increased supply and short‑term volatility risk.