Binance founder Changpeng "CZ" Zhao recently proposed an innovative token issuance model aimed at promoting sustainable growth and reducing market volatility in the crypto space.
#CZ'sTokenModelIdea
Key Features of CZ's Tokenomics Model:
1. Initial Token Release: At the Token Generation Event (TGE), only 10% of the total token supply is unlocked and sold. The proceeds fund project development, marketing, and team salaries.
2. Conditional Future Unlocks: Subsequent token releases are contingent upon meeting all the following criteria:
Time Interval: A minimum of six months must elapse since the last token unlock.
Price Performance: The token's market price must sustain a level at least twice that of the previous unlock price for 30 consecutive days prior to the next release.
Unlock Limit: Each subsequent unlock is capped at a maximum of 5% of the total token supply.
3. Team Discretion: Project teams have the flexibility to delay or reduce token unlocks but cannot accelerate the schedule or increase the unlock percentage.
4. Smart Contract Enforcement: All tokens are secured within smart contracts controlled by third-party custodians, ensuring adherence to the predefined unlock conditions.
Benefits of the Proposed Model:
Market Stability: By tying token unlocks to price performance and time intervals, the model aims to prevent market flooding during low-price periods, thereby reducing significant sell-offs and minimizing investor losses.
Long-Term Incentives: The structure encourages project teams to focus on sustainable development, aligning token value growth with long-term goals and fostering investor confidence.
CZ emphasized that this proposal is intended to stimulate discussion within the crypto community and that he has no immediate plans to issue a new token himself.
#CZ'sTokenModelIdea
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