K P Ghimire
--
CZ's New Token Lunching Model Ideology
A New Tokenomics Idea from Binance Founder Changpeng Zhao!
#CZ'sTokenModelIdea
Binance founder CZ has shared an interesting idea about a new token model. Here are the key points of this model:
Token Distribution and Unlock Mechanism👇
Initially, 10% of the total token supply is immediately released into the market, and the revenue generated goes to the project team (for development, marketing, salaries, etc.).
Conditions for Future Unlocks👇
✔️At least 6 months must have passed since the previous unlock.
✔️The token price must reach 2x the previous unlock price and stay at that level for at least 30 days.
✔️A maximum of 5% can be unlocked at a time.
Example Scenario:
A token is launched in January at $1. If the price is below $2 in June, no new tokens can be unlocked. Suppose the price stays above $2 between July 4 and August 3. In that case 👇
✔️A new 5% unlock can happen on August 3.
✔️If the price at that time is $3, the next possible unlock can only happen 6 months later, on March 3. But only if the price reaches $6+ and stays there for 30 days!
Flexibility and Control Mechanism
✔️The project team can delay or reduce the unlock if they choose.
✔️However, they cannot unlock earlier or exceed the 5% limit.
✔️The unlock process will be managed by a smart contract and controlled by a third party.
Advantages
✔️Tokens are not released when prices are low, preventing oversupply.
✔️The team is forced to focus on long-term success.
✔️New tokens cannot enter the market unless the price rises.
Risks and Realities
✔️This model does not solve every problem. Projects can still fail or be scams.
✔️Some may sell the initial 10% and disappear.
✔️The most important factors are a strong product, a solid community, and trustworthy founders.
CZ believes that some projects will experiment with this model and that he might support them. However, he also clarified that he won't automatically invest in a project just because it uses this model.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
#CZ'sTokenModelIdea
Binance founder CZ has shared an interesting idea about a new token model. Here are the key points of this model:
Token Distribution and Unlock Mechanism👇
Initially, 10% of the total token supply is immediately released into the market, and the revenue generated goes to the project team (for development, marketing, salaries, etc.).
Conditions for Future Unlocks👇
✔️At least 6 months must have passed since the previous unlock.
✔️The token price must reach 2x the previous unlock price and stay at that level for at least 30 days.
✔️A maximum of 5% can be unlocked at a time.
Example Scenario:
A token is launched in January at $1. If the price is below $2 in June, no new tokens can be unlocked. Suppose the price stays above $2 between July 4 and August 3. In that case 👇
✔️A new 5% unlock can happen on August 3.
✔️If the price at that time is $3, the next possible unlock can only happen 6 months later, on March 3. But only if the price reaches $6+ and stays there for 30 days!
Flexibility and Control Mechanism
✔️The project team can delay or reduce the unlock if they choose.
✔️However, they cannot unlock earlier or exceed the 5% limit.
✔️The unlock process will be managed by a smart contract and controlled by a third party.
Advantages
✔️Tokens are not released when prices are low, preventing oversupply.
✔️The team is forced to focus on long-term success.
✔️New tokens cannot enter the market unless the price rises.
Risks and Realities
✔️This model does not solve every problem. Projects can still fail or be scams.
✔️Some may sell the initial 10% and disappear.
✔️The most important factors are a strong product, a solid community, and trustworthy founders.
CZ believes that some projects will experiment with this model and that he might support them. However, he also clarified that he won't automatically invest in a project just because it uses this model.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
13
0