⚀ Distribution of tokens for the project is a very important aspect:
① There is a good token distribution: 1000x in one year.
② There is a bad token distribution: -99% in one year.
- Read the following series of tweets for more details
What we will cover today in this article:
① Distribution and total supply
② Customization and distribution
③ Vesting period
④ Need for a token (request)
By understanding this information, you will be able to evaluate whether the project is worth investing in or not.
You should know that having a bad coin distribution is bad
It does not mean that the project will not rise suddenly, and with a good distribution it does not necessarily mean an immediate rise.
Keep this possibility in mind!
This is how everyone works in #solana
Even unlikely events can happen.
Let's move on to the topic!
You will always find this data on the token page:
- Market value (MC)
- Fully Diluted Valuation (FDV)
- Circulating supply
- Total supply
Understanding each of these elements is key to making powerful choices, here's why 👇
These are called core display metrics.
Mastering these metrics allows you to effectively evaluate a token's potential.
➜ Knowing what each item is about and how it affects#cryptoprices is crucial.
① First: MC: The dollar value of the tokens in circulation.
②Second: FDV: The dollar value of all possible symbols.
③Third: Circulating supply: Tokens circulating in the market.
④ IV Total Supply: The maximum number of current possible tokens.
Let's dive into the key elements that impact the success of any token today:
❶ Token customization:
Here are two popular methods 👇
➜ Already mined:
Distributed between early backers, developers and consultants
➜ Fair release:
It allows everyone an equal opportunity to buy
Currently, most of the tokens on the market are pre-mined.
Other essential elements of token customization are:
- The token generation stage, or as it is known as TGE
- Customization stage
- Cliff period
- Maturity period
➜ Token Generation Event (TGE) refers to the official release of tokens.
➜ TGE allocation describes the share of tokens distributed to participants, typically between 10-20%.
➜ The cliff represents the waiting period immediately after TGE before continuing accrual begins.
➜ Vesting includes the gradual monthly release of token amounts.
➫ Recently, projects have increasingly adopted a strategy with a maximum TGE restricted to 20%, followed by a multi-month cliff period and an extended vesting schedule exceeding a year.
Always make sure to check these details before investing in a token!
❷ Token distribution:
Token distribution shows how crypto is distributed among different groups:
Founders, investors and community.
This process aims to decentralize the network, stimulate participation, and sometimes raise capital.
⚀ There are many ways to distribute tokens 👇
❶ Team
❷ Treasury
❸ Investors
❹ Marketing
❺ Public sale
❻ Strategic partners
❼ Community (Airdrop)
➫ Ecosystem initiatives (rewards, etc.)
➫ Always look for such items that can affect the demand for the 👇 token
①Token use case
Tokens that have practical applications tend to attract more buyers.
② Value creation
People are attracted to tokens that generate significant value.
Storage not only allows users to lock their tokens and receive periodic rewards, but also supports network stability.
Furthermore, holding tokens can lead to additional perks such as airdrops and other incentives, creating a mutually beneficial scenario.
③ Community support
A strong, unified community can greatly influence token demand, as we have seen in recent market cycles.
For example, meme tokens have seen significant increases in value driven by community enthusiasm.
④ Wealth preservation
#Cryptocurrencies are often purchased as a means of preserving wealth.
For example, some people buy $BTC and $ETH because to them they are like digital gold and silver.
✪ Also, it is important to understand who exactly holds the currency.
For example, is a token supported by a loyal community or just sellers?
This is not always easy because it involves interacting with the project community and conducting a comprehensive analysis.
It took me a lot of time to research and write this article so that everyone can benefit from it. I hope it reaches everyone
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