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Apr 28, 2023, 7 tweets

#tokenomics

Some empirical evidences on how token allocations at launch evolved over time
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What should be the optimal initial token allocation

A thread, summarizing the research below
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lstephanian.mirror.xyz/kB9Jz_5joqbY0e…

Investor allocations for newly launched tokens have been decreasing over time since 2013 from an avg. of ~25% to ~15% in 2021-2022

Seems tokens have been relying less on external capital over time

Team allocations have been increasing over time since 2013, from an avg of ~5% in 2013 to ~20% in 2021-2022

Seems like teams wanted a bigger share of the pie as crypto related technology improved

Airdrops grew in popularity during the run-up of 2017 and peaked in 2018

After a brief cool-off, Airdrop allocations have increased in recent years - from nearly 0% in 2019 to 15% in 2021-2022

DAOs have shifted the majority of ownership / allocation to the Community Treasury and Ecosystem Incentives, rather than teams and investors

Empirical research suggests the below is the optimal allocation for best token price performance

0% of tokens were earmarked for Public Sales. In the event there is a Public Sale, those tokens should be pulled directly from Team, Investor and Community Treasury - in that order

It is expected more token distributions to favor active contributors in future, less towards those merely providing capital

While the above data is not all-encompassing, the report can provide useful info in mapping token distribution for teams willing to launch a new coin

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