What is allocation in simple terms?

Allocation is the distribution of a project's tokens among its investors or participants.

Simply put, it is the process where each investor receives a certain amount of cryptocurrency based on how much they invested or how actively they participated in the project.

Typically, allocation occurs during an ICO (Initial Coin Offering) or other investment rounds where a project raises funds for development and, in return, provides tokens.

For example, if you participate in such a round and invest money, your allocation is the number of tokens you will receive after the fundraising is completed.