Good Idea

Binance founder and former CEO Zhao Changpeng (CZ) proposed a new idea regarding token issuance on the X platform. Initially, 10% of the tokens will be unlocked and sold in the market, and the funds raised will be used for the project team to develop products/platforms, market promotion, and pay salaries, etc. Future unlockings must meet all of the following conditions: 1. At least 6 months must have passed since the last unlocking; 2. The token price must remain above twice the last unlocking price for the 30 days prior to unlocking; 3. A maximum of 5% of the tokens can be unlocked each time.For example, if the token generation event occurs in January with a price of $1, by June, if the price is still below $2, no additional tokens can be unlocked. Assuming the token price stabilizes above $2 from July 4 to August 3, then on August 3, an additional 5% of the tokens can be unlocked for circulation. If the token price on August 3 is $3, the next earliest unlock time would be March 3 of the following year, provided that the token price must remain above $6 for 30 days prior to unlocking. Furthermore, the project team has the right to delay or reduce the number of tokens unlocked each time, and if they do not wish to sell more tokens, they can choose not to unlock them. At the same time, the project team does not have the right to shorten the unlocking period or increase the unlocking scale; the tokens must be locked by a smart contract and the keys controlled by a third party. Zhao Changpeng (CZ) stated that the advantage of this design is that it can prevent a large number of new tokens from entering the market during price downturns while also incentivizing the project team to engage in long-term development.