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.
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.