The founder of Binance, Changpeng Zhao (CZ), has introduced a new proposal for token issuance that aims to address key issues in the crypto market, such as volatility, price crashes, and lack of sustainability in projects. This idea, shared on March 1, 2025, has sparked intense debate in the crypto community, as it could change how projects design their tokenomics models.
What does CZ's proposal consist of?
CZ's proposal introduces a token issuance model based on strict time and price conditions, aimed at avoiding market saturation and promoting long-term growth of projects. Key points of the model include:
Limited initial unlock:
Only 10% of the total token supply is unlocked and sold during the token generation event (TGE). The funds raised are allocated to project development, marketing, salaries, and platform expansion.
Conditions for future unlocks:
The remaining tokens (90%) remain locked and can only be released if the following conditions are met:
At least 6 months have passed since the last unlock.
The token price has doubled the price of the last unlock and has remained above that level for 30 consecutive days.
A maximum of 5% of the total supply can be unlocked in each interval.
Control through smart contracts:
Locked tokens are managed through smart contracts controlled by third parties, ensuring transparency and preventing manipulation by the project team.
Practical example of the model
If a token is launched in January with an initial price of $1, no more tokens can be unlocked until the price reaches at least $2 and remains at that level for 30 consecutive days. If this occurs in August, an additional 5% of the total supply will be unlocked. For the next unlock, the price must reach at least $4 and meet the same conditions.
Impact on the crypto market
CZ's proposal has the potential to transform the dynamics of the token market by addressing common issues such as:
Avoiding price crashes:
By limiting the number of tokens entering the market, the risk of massive sell-offs that could collapse the price is reduced.
Fostering investor confidence:
Transparency and strict conditions for unlocks can increase investor confidence in projects that adopt this model.
Encouraging long-term growth:
This model forces project teams to focus on development and adoption, as unlocks depend on the token's performance in the market.
Community reactions
The proposal has generated mixed opinions in the crypto community. Some see it as an innovative solution to stabilize the market and promote sustainability, while others question whether projects will be willing to adopt such strict rules. CZ has clarified that this idea is not a plan to launch a new token, but a model to encourage discussion and improve current practices in the industry.
Conclusion
The proposal of #CZsTokenModelIdea represents an innovative approach to addressing the challenges of token issuance in the crypto market. While its implementation will depend on the willingness of projects and community acceptance, this model could establish a new standard for sustainability and transparency in the blockchain ecosystem. Do you think this idea could transform the industry? Share your thoughts with the hashtag #CZsTokenModelIdea