How To Structure Token Allocations For An ICO

Creating pie charts for your token sale

Token distribution is an essential part of every ICO. You probably see these pie charts a lot when looking through different projects.

Every ICO organizer must create such a chart to illustrate how token supply is split/distributed between various parties: investors, community, ecosystem, team, and other participants.

Pie chart of token allocation

For every ICO, there are the most common allocation types to consider.

ICO/sale allocation

One of the most critical questions for project organizers is: how much are we giving away to the public? What % of the total supply do we allocate for the sale?

It depends on 4 important factors:

1. How much do you want to raise?
2. How much money did you raise so far, and who were the investors?
3. Current status:
   - What’s the progress so far? Is there a working product?
   - How much traction do you already have? How big is the community?
   - What’s the team? Do they have a proven track record?
   - What’s the technology behind the product? How unique/proprietary is it?Are there network effects?
4. The current state of the market