#CZ'sTokenModelIdea
Changpeng Zhao (CZ) has proposed a new token issuance model that emphasizes long-term growth by restricting token unlocks based on price performance. His approach aims to minimize speculation and ensure sustainable market development by unlocking tokens in stages only if certain price conditions are met. Key Features of CZ's Token Model
Initial Token Sale:
Only 10% of the total token supply is sold during the Token Generation Event (TGE).
Proceeds from this initial sale are allocated for project development, marketing, and team salaries.
Unlock Conditions:
Future unlocks are contingent upon specific criteria:
A minimum of six months must pass since the last unlock.
The token price must exceed double the previous unlock price for at least 30 consecutive days.
No more than 5% of the total supply can be unlocked at each interval.
Example Scenario:
If the TGE occurs at a price of $1, the next unlock can only happen if the price reaches $2 and remains above it for 30 days.
Market Stability Measures
Phased Releases:
The model aims to reduce market dumping by tying token releases to consistent price performance.
Project Team Flexibility:
Teams have the option to pause or reduce unlocks if necessary, but cannot increase the maximum percentage for unlocks or alter the timescale.
Smart Contract Security:
All tokens are secured in a smart contract, with a third-party holding the keys to prevent manipulation.
Community Impact and Discussion
Long-term Incentives:
This model encourages project teams to focus on sustainable growth rather than short-term gains, fostering investor confidence.
Broader Implications:
CZ's proposal has sparked discussions within the crypto community about the future structure of token issuances and the potential for healthier tokenomics.
Thought Experiment:
CZ clarified that he does not intend to issue a new token himself but aims to stimulate conversation around this innovative model.
