Token

Future

Coin

<ul class="wp-block-list news-points">
 <li>High initial token circulation (65-75%) fosters better market dynamics post-TGE.</li>
 <li>Memecoins thrive due to immediate price appreciation potential compared to traditional tokens.</li>
 <li>Regulatory changes could level the playing field for early-stage decentralized token access.</li>
</ul>
Tokenomics, the economic design of a cryptocurrency’s token, shapes a project’s market performance and an appeal to retail investors. Traditional models featuring extended vesting schedules and low initial token circulation have become the norm, but some experts argue this approach is outdated.
Andrew Kang, Co-Founder of Mechanism Capital, stated in response to a tweet by prominent crypto figure Cobie that long investor lockups and limited token circulation at launch hinder true price discovery and can impede a project’s growth. This revelation has ignited calls within the industry for greater immediate circulation on Day 1, potentially fostering a healthier investment environment and attracting more committed participants.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 It’s counterintuitive, but the best tokenomic design for a project (and retail) is to not have investor lock ups and have as much tokens to be as circulating as possibl…
 </blockquote>
 </div>
</figure>
The post <a href="https://coinedition.com/why-high-initial-token-circulation-is-the-future-of-tokenomics/" rel="noopener noreferrer nofollow">Why High Initial Token Circulation Is the Future of Tokenomics</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

Why High Initial Token Circulation Is the Future of Tokenomics

Coin Edition

Other articles published on Oct 29, 2024

Bhutan Government BTC Transfer Raises Speculations As BTC Crosses $71K

Bybit Card Expands Into New Regions, Offering Seamless and Rewarding International Crypto Payments

Bitcoin ETFs log 4-day inflow streak with $479m, Ether ETFs face outflows

Unlock the Tropical Rainforest: Mint Expedition Season 4 Officially Starts!

Pepe Musk (PEPEMUSK) Solana Memecoin to Rally Over 13,000% Ahead of First Exchange Listing, While...

Catzilla (CATZ) Set for 10,000% Gains, Says Analyst—Leaving DOGE and XRP in the Dust

Join our free newsletter for daily crypto updates!