3 Rules for Token Distribution & Economics

Common Problems with Tokens Today

  1. Too much is focused on fundraising and not enough is focused on real business models and growth.
  2. Not enough tokens are held by the network users and developers and too many tokens are held by the investors and creators.
  3. A lack of price flexibility can make the network too costly to use and can impede growth.

Token Rule #1: Business Modeling First, Fundraising Second

  1. provides for a way for us to grow the network and get many people on board with our mission
  2. catalyzes the existing network and organizes the people towards a common goal
  3. provides a mechanism for governance and voting on protocol upgrades

Token Rule #2: Maximize Tokens for Developers & Users

A holder of tokens that contributes to the network is more valuable than a holder of tokens that does not contribute to the network.

Token Rule #3: Price Flexibly to Optimize for Growth

  1. periodically-adjusted pricing
  2. auction-based pricing

Building for the Long Term

  1. Business modeling first, fundraising second
  2. Maximize tokens for developers and users
  3. Price flexibly to optimize for growth

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