CZ mentioned the new token issuance mechanism: 10% will be unlocked initially, and further unlocking will only be possible after certain price conditions are met
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Odaily reported that CZ published a post about a new token issuance idea. The full text is as follows:
What if someone issues a token based on the following token economics? Initially, 10% of the tokens will be unlocked and sold in the market. The funds raised will be used for product/platform development, marketing, and payroll by the project team. Future unlocks must meet all of the following conditions: at least 6 months since the last unlock; the token price has been above 2 times the previous unlock price for 30 days prior to the unlock; and each unlock is capped at 5% maximum. For example, if the token was first issued (TGE) at $1 in January, and the price is still below $2 by June, no further tokens can be unlocked. Assuming the price has been above $2 from July 4 to August 3, then 5% of the tokens can be unlocked on August 3. If the price on August 3 is $3, the next earliest possible unlock time would be March 3 of the following year, and only if the price has been above $6 for 30 consecutive days. The project team has the right to delay or reduce the size of each unlock. If they don't want to sell more tokens, they can choose not to sell. But they can only unlock (sell) a maximum of 5% of the tokens each time, and then must wait at least another 6 months, and the price needs to double again. The project team has no right to shorten the unlock interval or increase the size of the next unlock. The tokens will be locked by a smart contract, with the key controlled by a third party. This mechanism avoids a large influx of new tokens into the market during low prices. It also incentivizes the project team to focus on long-term development. CZ finally stated: "There are no plans to issue new tokens. This is just an idea for discussion."
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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